Sponsored By

Walmart sells off its Argentina business to Grupo de Narváez

More than 90 stores to be sold to South American retailer

Michael Browne, Executive Editor

November 9, 2020

3 Min Read
Walmart Argentina Changomas.jpg
Walmart's Changomas, Mi Changomas and Punto Mayorista banners will continue to serve customers in Argentina under new ownership by Grupo de Narváez.Walmart

As it continues to restructure its international presence, Walmart Inc. has agreed to sell its business in Argentina to Grupo de Narváez, a South American retail group. No financial terms were released.

Bentonville, Ark.-based Walmart said it will continue to support the business through transition services and sourcing agreements under the new ownership, but will not retain an equity stake.

Grupo de Narváez, which has retail operations in Argentina, Ecuador and Uruguay, will bring strong local expertise that will position the business to thrive, the companies said.

Under Fernando Minaudo, CEO of Grupo de Narváez CEO, the new owners of Walmart Argentina stores will continue to drive long-term growth for the business in Argentina’s dynamic retail environment. The company will remain one of Argentina’s largest employers and will continue to work closely with suppliers to provide the best value for customers, maintaining its commitment to supporting domestic suppliers and small businesses. Dolores Fernandez Lobbe will continue to support the business through a transition period, after which she will move into a new role within Walmart.

“We are very proud and excited about this new investment,” said Minaudo. “We share the same values: a customer-centric philosophy, focus on operational excellence and commitment to the communities in which we operate. The company’s performance and dedication of its incredible associates through the COVID-19 pandemic have demonstrated the fundamental strength and resilience of the business, and we are thrilled to support the team, drive long-term growth and create new opportunities for associates and suppliers across Argentina.”

Related:Walmart to sell majority stake in Asda for $8.8 billion

With this deal, Grupo de Narváez consolidates its presence in nine South American countries with 656 stores.

Walmart Argentina started operating in 1995, with the launch of its first shop in Avellaneda. Since that time, the business has grown to more than 90 stores and 9,000 associates under the Changomas, Mi Changomas, Walmart Supercenter and Punto Mayorista banners. The Changomas, Mi Changomas and Punto Mayorista banners will continue to serve customers in Argentina, following the transaction. Walmart Supercenters will be rebranded following a transition period.

“We are very proud of our Argentina business and associates as they’ve led and shown resilience throughout this year serving customers when they needed them most,” said Judith McKenna, president and CEO of Walmart International, said. “We are excited by the local retail expertise the new owners bring to this already strong business, and we believe this deal creates the right structure to help it truly flourish for many years.”

Related:Walmart Canada steps up omnichannel investment

Walmart operates approximately 11,500 stores under 56 banners in 27 countries and e-commerce websites in 10 countries. However, the retail giant has been re-examining its global business over the years, pulling out of Germany and South Korea in the 2000s, and selling 80% of its Brazilian operations to a private equity firm.

More recently, this past October, Walmart sold its majority ownership in Asda Group Ltd., its United Kingdom grocery subsidiary, to EG Group founders the Issa brothers and U.K. private-equity firm TDR Capital in a deal valued at £6.8 billion ($8.79 billion). The company is retaining an equity stake in Asda, with an ongoing commercial relationship and a seat on the supermarket chain’s board.

About the Author

Michael Browne

Executive Editor, Supermarket News

Michael Browne joined Supermarket News in 2018 after serving in managing and executive editor capacities at leading B2B media brands including Convenience Store NewsLicense Global and Travel Agent. He also previously served as content production manager for print and digital in the Business Intelligence division of Informa, parent company of Supermarket News and Nation’s Restaurant News.

As executive editor, Mike oversees the editorial content of supermarketnews.com as well as the monthly print publication. He also directs all content-based brand-related projects including the annual Top 75 Retailers report, Category Guide, Retailer of the Year, research surveys and special reports, as well as podcast and webinar content. Mike has also presented and moderated at industry events.

In addition to the positions mentioned above, Mike has also worked as a writer and/or editor for special projects at American Legal Media (ALM), managing editor for Tobacco International, special projects editor at American Banker • Bond Buyer, and as production editor for Bank Technology News and other related financial magazines and journals published by Faulkner & Gray.

A graduate of Fordham University, Mike is based in New York City, where he was born and raised.

Contact Mike at [email protected] or follow him on Twitter and LinkedIn.

 

Stay up-to-date on the latest food retail news and trends
Subscribe to free eNewsletters from Supermarket News

You May Also Like