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American supermarket company Walmart announced on Friday its intention to sell its Argentina businesses to Latin American company Grupo de Narváez.
In addition to this, they explained in a statement that this decision would have generated a loss of 1,000 million dollars in their accounts; after Walmart, it has been in the country for 25 years and operates more than 90 stores with 9,000 employees.
In this sense, in a letter sent to the authorities of the New York Stock Exchange (SEC), the company indicated that this amount is related; “Mainly with accumulated losses due to exchange rates.”
It is worth remembering that Argentina has suffered a strong devaluation of its currency in recent weeks, due to an economic crisis; This caused a shortage of dollars in the local square.
Intending to sell its Argentina business: Walmart
In the South American country, the supermarket chain operates 92 stores in Argentina with the Changomas, Mi Changomas, Walmart Supercenter and Punto Mayorista brands; among other services, it is read in a joint document from both companies.
As for the Narváez Group which will acquire the assets, it is worth mentioning that it is a family business active in retail since the beginning of 1940; It also has operations in nine countries and 24,500 employees.
In this sense, Walmart, which plans to sell its Argentina businesses, will deliver its results for the third quarter of its fiscal year 2021; November 17.
Falabella, Latam and Axalta too
It is not only Walmart that will leave Argentina, it was known according to local media that Falabella (Chile), the airline Latam and Axalta (USA), among others; they have decided in the last few days to leave their operations there.
All these decisions are due to the fact that an exchange control was established in Argentina in 2019, which has gradually tightened over time.
“The official exchange rate depreciated by more than 25% over the year. The gap between the official exchange rate and is close to 100%. With annual inflation over 40%, Argentina has also seen poverty (40.9%) and unemployment (13%) rates skyrocket in the midst of the covid-19 pandemic, “Infobae reported.
With information: ACN / Information / Photos: Courtesy
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