Mexican Supermarkets Unite Against Wal-Mart
by July 21, 2003 12:00 am 79 views
Three of Mexico’s largest supermarket chains are joining forces to lower costs and boost profits so they can face relentless attacks on their market share by retail powerhouse Wal-Mart de Mexico (Walmex), the Mexican arm of Bentonville-based Wal-Mart Stores Inc.
Grupo Gigante, Organizacion Soriana and Comercial Mexicana announced the alliance in brief, almost identical news releases on July 8.
The deal will allow the three Mexican companies to jointly purchase merchandise, giving them more leverage with suppliers, Angelica Rendon, a spokeswoman for the firms, told the Reuters news agency. They will also exchange technology, she said. Together the companies are slightly smaller in terms of sales than Walmex.
Baldor sees earnings,
sales down for 2Q
Baldor Electric Co. of Fort Smith on July 11 reported second-quarter earnings of 18 cents per share, down 13 percent from the 20 cents per share it reported during the same time last year.
Baldor, which makes and sells electric motors, drives and generators, also said second-quarter sales decreased 5 percent and net earnings decreased 17 percent.
On a year-to-year basis, Baldor said sales decreased 1 percent, net earnings decreased 4 percent, and earnings per share remained flat at 36 cents per share.
“These financial results don’t show that the sales and profits are a combination of good news and bad news,” R.S. Boreham Jr., Baldor chairman, said in a news release.
“The good news is that our drive for new customers, started last year, is progressing well. The bad news is that some old customers and traditional markets are not doing well now but are starting to show signs of recovery.”