SAO PAULO (Reuters) – Walmart Brasil will close down its e-commerce operation in Latin America’s biggest retail market to focus on brick and mortar locations, converting underperforming hypermarkets into wholesale stores.
FILE PHOTO: The main entrance to a Walmart store is pictured in Sao Paulo, Brazil February 14, 2018. REUTERS/Paulo Whitaker
Wholesale has become increasingly popular in Brazil as the country slowly exits from a harsh recession.
“The company is working in a new omnichannel strategy which will be later announced”, Walmart Brasil said in a statement on Friday, without giving details. News of the decision was first reported by newspaper Valor Economico.
The move is likely to open room to local and international retailers currently focused on exploring still incipient e-commerce in Brazil.