Business

The Walmart brand will leave Brazil

The company will invest BRL 1.2 billion (around $ 300 million) in changes that will continue until next year

walmart store in brazil
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  • The brand of Walmart supermarkets would no longer be present in the country after the first semester of 2020;
  • The company says that it will invest BRL 1.2 billion (around $ 300 million) in changes that will continue until next year and that should reach a balance (break-even point) in the accounts of the company in 2021.

The president of Walmart Brazil, Luiz Fazzio, said in an interview with the newspaper Valor Econômico, that the company would go on to be called Grupo Big and that the brand of Walmart supermarkets would no longer be present in the country after the first semester of 2020.

In the South and Southeast of the country, Walmart branches will adopt the name Big. In the Northeast, the stores will go on to be called Big Bompreço. In general, 127 supermarkets will undergo changes, with 100 of them adopting the new names.

The rest of the branches will migrate to more successful models in the country: Maxxi Atacado (competing under names such as Assaí and Atacadão, although they have smaller stores than the two) and Sam’s Club (a membership-only store whose brand also belongs to Walmart in the United States and which will remain here in Brazil).

In general, the company says that it will invest BRL 1.2 billion (around $ 300 million) in changes that will continue until next year and that should reach a balance (break-even point) in the accounts of the company in 2021.

In 2018, Advent bought 80% of Walmart in Brazil with the mission of rebuilding the company in the country. The other 20% belonging to American partners should be sold in a period yet to be disclosed by the company.

The gross revenue of the group in 2018 was of BRL 24.5 billion, a decrease of 13% in comparison with 2017. There are no forecasts for this coming year.