Saturday, December 06, 2003
Mexico surrenders to Wal-Mart
After conquering every conceivable American suburb, Wal-Mart has its sights set on Mexico and it seems like Mexicans don't mind. Tim Weiner has the story.
Wal-Mart, the biggest corporation in the United States, is already the biggest private employer in Mexico, with 100,164 workers on its payroll here as of last week. Last year, when it gained its No. 1 status in employment, it created about 8,000 new positions — nearly half the permanent new jobs in this struggling country. Wal-Mart's power is changing Mexico in the same way it changed the economic landscape of the United States, and with the same formula: cut prices relentlessly, pump up productivity, pay low wages, ban unions, give suppliers the tightest possible profit margins and sell everything under the sun for less than the guy next door.
Though it came to this country only 12 years ago, Wal-Mart is doing more business — closing in on $11 billion a year — than the entire tourism industry. Wal-Mart sells $6 billion worth of food a year, more than anyone else in Mexico. In fact, it sells more of almost everything than almost anyone. Economists say its price cuts actually drive down the country's rate of inflation.
Last year, 585 million people — nearly six times the population of Mexico — passed through its check-out lanes. With 633 outlets, Wal-Mart's Mexican operations are by far the biggest outside the United States. Its sales represent about 2 percent of Mexico's gross domestic product — almost the same as in the United States. Analysts say it now controls something approaching 30 percent of all supermarket food sales in Mexico, and about 6 percent of all retail sales — also about the same as in the United States.
PS: Have a look at the graphic that details Wal-Mart's presence around the world.
Wal-Mart, the biggest corporation in the United States, is already the biggest private employer in Mexico, with 100,164 workers on its payroll here as of last week. Last year, when it gained its No. 1 status in employment, it created about 8,000 new positions — nearly half the permanent new jobs in this struggling country. Wal-Mart's power is changing Mexico in the same way it changed the economic landscape of the United States, and with the same formula: cut prices relentlessly, pump up productivity, pay low wages, ban unions, give suppliers the tightest possible profit margins and sell everything under the sun for less than the guy next door.
Though it came to this country only 12 years ago, Wal-Mart is doing more business — closing in on $11 billion a year — than the entire tourism industry. Wal-Mart sells $6 billion worth of food a year, more than anyone else in Mexico. In fact, it sells more of almost everything than almost anyone. Economists say its price cuts actually drive down the country's rate of inflation.
Last year, 585 million people — nearly six times the population of Mexico — passed through its check-out lanes. With 633 outlets, Wal-Mart's Mexican operations are by far the biggest outside the United States. Its sales represent about 2 percent of Mexico's gross domestic product — almost the same as in the United States. Analysts say it now controls something approaching 30 percent of all supermarket food sales in Mexico, and about 6 percent of all retail sales — also about the same as in the United States.
PS: Have a look at the graphic that details Wal-Mart's presence around the world.
