Wal-Mart in Nicaragua

&#9824 Someone mentioned the “Pali Supermarkets” today. Below is a link to the involvement of “Wal-Mart in the one/third (33%) ownership of “Pali” and “La Union” in Nicaragua and in the ownership and buying power of “Wal-Mart” in all of Central America.

Probably, "Price Smart" will become a "Sam's Cub" in 2006.

Possibly the "Panama Canal" in 2008 will be the "Wal-Mart Waterway".

Click Here for Link

BENTONVILLE, Ark., Sept. 20, 2005

John Menzer, President and Chief Executive Officer of Wal-Mart International announced today the purchase of a 33-1/3 percent interest in Central American Retail Holding Company (CARHCO). CARHCO is Central America's largest retailer, with 363 supermarkets and other stores in the following five countries: Guatemala (120), El Salvador (57), Honduras (32), Nicaragua (30) and Costa Rica (124).

CARHCO has three operative companies: La Fragua, founded in Guatemala in 1928 by Carlos Paiz Ayala; CSU, founded in Costa Rica in 1960 by Enrique Uribe Pages; and Corporacion de Companias Agroindustriales (CCA), a supplier to CARHCO of meat and seafood, fruit, grain, vegetables and bakery products.

As part of the agreement, Wal-Mart will acquire additional interests over time in CARHCO, including interests toward achieving majority ownership in the company. The new partnership demonstrates confidence in the region's economic potential, Menzer said, adding that significant investments are planned in the years ahead to open new stores and serve customers better with improved services, high quality and innovative products and lower prices.

The investment in CARHCO is Wal-Mart's first in Central America, although the region is a major source of apparel for the company and Wal-Mart directly imports more than $350 million in goods from Guatemala, Honduras, El Salvador, Nicaragua and Costa Rica. In addition, Wal-Mart purchases goods from many suppliers with farms and factories in Central America.

CARHCO N.V. is the leading supermarket and hypermarket chain in Central America. As of August 24, La Fragua operated 209 stores in Guatemala, Honduras and El Salvador. Its formats include Paiz, Hiper Paiz, Despensa Familiar, Club Co, La Despensa de Don Juan and Maxi Bodega. CSU operated 154 stores in Nicaragua and Costa Rica. Formats include Mas X Menos, Hiper Mas, Pali, La Union and Maxi Bodega.

___________________________________________________________

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

Update

Wal-Mart has boosted its holdings in Central America to a majority stake of 51%. See the full article here.

51% = A real return "policy"?

I would like to think that if Central America gets nothing else out of this deal, maybe there will be a store chain which actually honors the warranty (if there is one), and actually exchanges new, unopened, undamaged purchases. In Honduras, only gringos can return things for exchange (not sure why, but as best I can tell their chances are better if they do not speak Spanish and are belligerent), but I get tired of being asked to handle every defective piece of merchandise for people I know!

Different Link

Padre .. here is a link that works a little better.

Wal-Mart & China poised to Pillage Central America

We all know what 51% means ... in taking the time to read this article, this is a whole lot more then just grocery stores.

Strange (maybe)

Maybe not so strange, but in Honduras the grocer battles are often between Paiz, La Colonia, Despensa Familiar, and Pali. If they are mostly all owned by the same company, why offer such good prices (usually the prices are very decent, all things considered), and spend counltess $ on advertising, on stores which are often on the same city block? Seems odd to have prices vary a lot between stores (which they often do), depending what is on sale. Another odd thing is that the article claims Mas x Menos is in Nicaragua and Costa Rica (they do not mention Honduras). But, the oldest giant supers in Honduras are called Mas x Menos, and is rumored to be privately owned, so I am not sure how they can use that name, if they are truly separate. Best of all, the money change house atop Mas x Menos in Tegucigalpa, routinley violates every international banking law (a well known front), and it is conveniently located almost across the street from the U.S. Embassy.

No More Pali

I wont be shoping at Pali anymore. I dont shop at Walmart. The are a classic example of greed.

http://www.jija.com

click on Big Box Mart ... Then check out the Bush one... Funny stuff ... but the Bix Box Mart one is exactly what I think about Walmart.

Not shopping will not put.......

Not shopping will not put them out of business. Minimum wages is better than no wages. In 1997, I was paying my made "empleada de adentro" more than what a director of a secondary school was making, and not because I am a "Gringo" making US$$. Greed=Capital investment and that's what make the wheel turn.

No Wages

Its more then just low wages, its about predatory business practice, sweat shops, environmental destruction, compensation of hours worked... its not about the wheel turning, its about getting broken on the wheel.

Woops

Not just "Pali"

&#9824 Miskito Alan says don't forget about "La Union" in Managua.

_____________________________________________________

bummer about La Union . . .

it's the nearest supermercado to me in B. Horizonte . . . however, the new Centro Commercial Las Americas will have a La Colonia (whenever the mall actually opens, so far it is a month late)

Doors of hope fly open when doors of promise shut. -Thomas D'Arcy McGee