Walmart seeks buyer for its business in Argentina, but rules out sale in Chile

Although in Argentina the Walmart chain seeks to add a partner or buyer for its business in that country, the company rules out having similar plans for Chile, where it operates the Lider supermarkets.

As reported on Friday by the trans-Andean media La Nación, Walmart gave a mandate to sell its Argentine subsidiary to Citibank bank, although the company specified that this process is on hold due to the need to focus on management within the framework of the Covid-19 emergency situation. With 92 stores, which operate under the Walmart, Changomas and Punto Mayorista brand, the North American company is the fourth operator in the Argentine market and controls 12% of the supermarket business.

Pulso asked Walmart about whether the process it started in Argentina could also be repeated in Chile, to which the company replied that there are no such plans for its operations here.

“Earlier this year, Walmart began exploring options for a possible partnership or investment to help accelerate the growth strategy of its business in Argentina. There are no such plans for Walmart Chile, ”said the company.

He also noted that “our focus continues to be serving customers and working to protect the safety of our associates during the current crisis, while strengthening our efforts to fight Covid-19.” “We are very proud of our collaborators and appreciate all that they continue to do to help our communities through this difficult time.”

According to the Argentine media, in the 25 years they have been in that country, Walmart faced several difficult moments. He also recalled that he has already advanced with this model in Brazil, where two years ago he reached an agreement to divest most of his shares from his subsidiary at the hands of the investment fund Advent.

In Chile, the company has also faced difficult times. Walmart was one of the companies that presented the greatest damages after the social outbreak that detonated on October 18 last. The supermarket firm, in fact, revealed at the time that it suffered looting in 128 stores and fires in 34 of them, and many remained closed due to damage or being completely destroyed.

“Since the beginning of the acts of violence, we have accounted for more than 1,100 incidents between looting, fires and feints of fires,” the chain said at that time that in Chile it operates supermarkets of the Líder, Express, Central Mayorista and SuperBodega aCuenta formats.

It was in this scenario that different alternatives turned around in the face of the events that affected the operation, which included strategic options with a medium and long-term perspective.

One of them, according to insiders of the debates inside Walmart, included selling land of burned out premises that were not strategic for the firm that could have any real estate potential for homes or commercial purposes. The company officially said at the time that they were focusing all their efforts on recovering the operation, so there were no decisions made regarding the business.