While the pandemic and mobility measures in Mexico meant that most of the Retail stores the country experienced "red numbers", a group of companies achieved what seemed impossible: adapt to the difficulties generated by the coronavirus, not only maintaining the stability of its benefits, but also increasing them.
An example of this is that of the American retail giant, Walmart, which was able to boost its profits in Mexico and Central America by almost 50% in just 9 months of 2021. But what were the company's strategies and how was it able to take advantage of the crisis to accelerate its growth? Here we explain it to you.
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In this article you will find:
E-commerce in pandemic
Like other supermarket chains, Walmart significantly increased investments to enhance its online commerce channels when the pandemic began. Its omnichannel strategy started almost a decade ago, but it was the coronavirus that forced it to have a special focus on e-commerce.
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Only in 2020 the company invested about 2.7 billion pesos, and in the first half of 2021 it had already reached an investment of 2.2 billion. The strategy paid off, positioning Walmart as one of the largest e-commerce companies in the country along with Mercado Libre and Amazon.
In just 3 years, Walmart's share of the e-commerce market went from 4.5% to 8.5%, closing the gap with the first two on the list.
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Discounts to attract new customers
According to recent reports, one of Walmart's strategies to attract customers during the third quarter of 2021 was the launch of aggressive discounts on all types of merchandise. For this, the chain would have relied on its own brands to be able to offer competitive prices without registering losses.
A large part of the catalog of discounted products was born from the hand of affiliate chains such as Bodega Aurrerá and Sam’s Club, being able to offer special prices to millions of clients throughout the territory.
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It is estimated that for the final months of 2021 the same strategy will be maintained since it is the beginning of the Christmas consumption season. The Good End at Walmart, which paves the way for months to come, with discounts of up to 50% on electronics, cleaning, food, and entertainment, as well as the offers of Black Friday, Cyber Monday and Christmas, would be the main “festivities” of November and December.
Home delivery for retention
Finally, the company would be betting squarely on home deliveries as a strategy for customer retention. Not only would it provide deliveries in less than 48 hours and special benefits for those who consume through of the Internet, but also developed a subscription model to ensure deliveries the same day.
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For this, it would have created a fleet and a distribution center in Chalco, increasing the capacity of home deliveries significantly. With a network of 2,700 stores that offer home delivery, the company ensures almost total coverage in the main cities of the country.
It is clear that the economic muscle that Walmart has is very different from that of most of the Mexican companies, especially if we speak strictly of the ventures in the retail sector. However, knowing the company's strategies can be a way to understand what areas local companies should strengthen to adapt to this, and future crises.
