Wal-Mart in Nicaragua
♠ 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".
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.