Mexico's Walmex pays suppliers early to guarantee holiday stock
MEXICO CITY (Reuters) - Mexico's leading retailer Wal-Mart de Mexico said on Monday that it had made early payments totalling 4.3 billion pesos (US$326 million) to its suppliers to make sure they deliver products on time for a sale next weekend and for the Christmas season.
The company, known as Walmex (WALMEXV.MX), said the payments had been made during September and October. It did not detail any effect they might have on the company's financial results.
It usually takes between 60 and 90 days for providers in Mexico to be paid by big retailers.
Walmex made the payments in advance of delivery to make sure its stores are well stocked before Mexico's version of a "Black Friday" shopping spree, scheduled for November 16 to 19, and Christmas shopping. Retailers refer to the Friday after the U.S. Thanksgiving holiday as "Black Friday" because, as the start of the holiday shopping season, it can bring them significant revenue.
Walmex, a unit of U.S.-based Wal-Mart Stores Inc (WMT.N), said it planned to buy 85 billion pesos ($6.4 billion) worth of merchandise in Mexico in the fourth quarter.
Its shares ended up 0.16 percent at 38.45 pesos on Monday.
($1 = 13.226 pesos)
(Reporting By Cyntia Barrera Diaz)