Walmart’s current distribution centers in Mexico.
Walmart plans to invest $36 M (650 million pesos) on a new distribution center in Yucatan, Mexico. The center will be operated by the company’s Mexico and Central America division and bring total Walmart investment in that area to $171.5 million (3.138 billion pesos) and generate more than 500 direct jobs and 250 indirect ones, the company has announced.
A statement published on July 4 on the website of Yucatan Times said, the new business unit will positively impact [Yucatan’s] production infrastructure, since in addition to the new jobs, it will expand the company supply network into the states of Campecha and Quintana Roo. The activity is also expected to attract more local suppliers.
The Times said that Walmart Mexico and Central America currently has 36 business units in Yucatan; 10 Bodega Aurrera stores, 11 “Mi Bodegas Aurrera”, five “Bodegas Aurrera Express”, three Sam’s Club, one Superama, and six Walmarts. The company has said that Walmart México and Central America has generated 3,457 permanent jobs in 14 municipalities of the state: Mérida, Halacho, Hunucma, Izamal, Motul, Kanasin, Oxkutzcab, Tekax, Tixkokob, Tizimín, Ticul, Uman, Valladolid and Progreso.
AndNowYouKnow, the produce industry blog, noted that the new facility will allow the company to strengthen and expand its logistics network in Mexico.
What neither The Times nor ANYK said was whether the distribution center – with new suppliers on board – might in time facilitate an increased flow of Mexican produce into the United States. This would be a logical secondary use for the center, nopt least because that would enable trucks delivering from Walmart US to Walmart Mexico to avoid making the return trip empty. One has to assume that someone in Bentonville AR, Walmart’s global headquarters, has calculated both the logistics and the practicality of employing that potential.