A complex and volatile country and an unprecedented global situation. These factors prompted Walmart's parent company in the United States to decide to end its operations in Argentina. To that end, the chain has mandated it to sell its local subsidiary to Citibank and is already looking for a buyer or potential partner.
Interested stakeholders include Coto, the Inverlat Fund (owner of Havanna) and the De Narvaez Group.
Although these negotiations began early in the year, they are currently being halted due to the global pandemic. "Earlier this year, we began exploring the possibility of new alliances to advance our business in Argentina and its growth path; a process that was at an early stage but that we were confident could help accelerate our strategy in Argentina," explained Juan Pablo Quiroga, Director of Institutional Relations at Walmart Argentina.
And he added that this process was "suspended" because of the need to focus Covid-19 on emergency management. "We are convinced of the potential of doing business in Argentina and remain committed to our clients, associates and communities in Argentina at this critical time," he added.
It should be noted that they do not want to be acquired by a competitor in the retail segment, but by a "financial investor", so the alliance or acquisition is "discarded", at least at this point.
The operation in Argentina is part of the process of redefining its international investment portfolio, which also involves seeking a partner or buyer for its English subsidiary.
Walmart has already made progress with this model in Brazil, where it reached an agreement two years ago to separate most of its shares from its subsidiary at the hands of the Advent Investment Fund. In Brazil, the operation included a change to the Walmart brand already replaced by Big in that market.
In Argentina, the operation will not involve the transfer of the Valmart brand, although the parent company is ready to cede the use of the name for a few months during the transition. Instead, the operation would include the Changomas brand, which is a successful local development.
Valmart has 92 stores, 29 of which operate under the Valmart brand, 61 are Changomas and two are wholesalers with the name Vholesale Point. The company came from North America in 1995 and has faced some difficult moments and several upheavals over these 25 years, including some setbacks, such as the launch of its Sam's Club shopping club, which could never adapt to the Argentine market.
Interested stakeholders include Coto, the Inverlat Fund (owner of Havanna) and the De Narvaez Group.
Although these negotiations began early in the year, they are currently being halted due to the global pandemic. "Earlier this year, we began exploring the possibility of new alliances to advance our business in Argentina and its growth path; a process that was at an early stage but that we were confident could help accelerate our strategy in Argentina," explained Juan Pablo Quiroga, Director of Institutional Relations at Walmart Argentina.
And he added that this process was "suspended" because of the need to focus Covid-19 on emergency management. "We are convinced of the potential of doing business in Argentina and remain committed to our clients, associates and communities in Argentina at this critical time," he added.
It should be noted that they do not want to be acquired by a competitor in the retail segment, but by a "financial investor", so the alliance or acquisition is "discarded", at least at this point.
The operation in Argentina is part of the process of redefining its international investment portfolio, which also involves seeking a partner or buyer for its English subsidiary.
Walmart has already made progress with this model in Brazil, where it reached an agreement two years ago to separate most of its shares from its subsidiary at the hands of the Advent Investment Fund. In Brazil, the operation included a change to the Walmart brand already replaced by Big in that market.
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In Argentina, the operation will not involve the transfer of the Valmart brand, although the parent company is ready to cede the use of the name for a few months during the transition. Instead, the operation would include the Changomas brand, which is a successful local development.
Valmart has 92 stores, 29 of which operate under the Valmart brand, 61 are Changomas and two are wholesalers with the name Vholesale Point. The company came from North America in 1995 and has faced some difficult moments and several upheavals over these 25 years, including some setbacks, such as the launch of its Sam's Club shopping club, which could never adapt to the Argentine market.
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