PREVIEW-Mexico's Walmex Oct same-store sales seen up 5 pct
MONTERREY, Mexico, Nov 5 (Reuters) - Mexico's Walmex is seen posting a 5 percent rise in October same-store sales helped by an extra Saturday and its ability to maintain low prices in tough economic times.
A Reuters poll of five analysts showed Wal-Mart de Mexico, or Walmex (WALMEXV.MX), will continue to increase same-store sales, or those recorded at stores that have been open for at least 12 months, despite the recession hitting customers.
"We expect no changes in trends compared with previous months: strong same-store traffic and a feeble average ticket," said Citigroup in a recent report.
"This month (October) has a favorable calendar effect," the report said, referring to an extra Saturday compared with the same month in 2008.
The company has made great strides in attracting clients with aggressive price-cutting promotions aimed at low-income shoppers, helping Walmex pull ahead of competitors like Soriana (SORIANAB.MX) and Comercial Mexicana (COMEUBC.MX).
"Walmex continues to implement innovative measures to attract clients, with formats employing differentiated campaigns," Citigroup added.
Mexico's economy could fall as much as 7 percent this year and while Walmex's supermarkets are performing well, its restaurants and clothing stores are still struggling despite some recent recovery signs.
Walmex, a unit of U.S. retail giant Wal-Mart Stores (WMT.N), is expected to report monthly sales results after market close on Friday. (Reporting by Gabriela Lopez, editing by Dave Zimmerman)
