The world’s largest retailer has made a number of changes that will make it a stronger competitor over the long term. Under the guidance of CEO Doug McMillon, Walmart is reinventing itself by pivoting toward growth markets and producing a Walmart that will thrive in the future. Walmart has been looking to jumpstart its overseas business by withdrawing from lower-growth markets and investing in places like China and India. For over a decade, Brazil has been the focus of expansion but the unit stumbled in recent years.
Walmart Inc. announced on Monday that it has sold an 80 percent stake of the Brazilian operations to Advent International, a private equity investor with extensive holdings in Brazil. When the transaction is completed, Walmart will retain a 20 percent stake in the company. Walmart anticipates recording a non-cash, net loss of approximately $4.5 billion in the second quarter due to this transaction.
As reported by Forbes, in a few weeks, Walmart has reshaped its international operations to reorient its portfolio toward growth. First, the company sold Asda for nearly $10 billion to Sainsbury to yield a stronger business, dealing a blow to Amazon in the process. Walmart will cash out $4 billion in its investment in Asda. Walmart followed up the Asda deal with a $16 billion investment in Flipkart, acquiring a 77 percent stake in the leading India e-commerce operator. And now, Brazil.
Under McMillon, Walmart has made huge improvements in e-commerce. The company plans to have more than 2,000 grocery pickup stations by the end of 2018 and it has made several acquisitions to improve its online retail capabilities.
Las year, Walmart’s US e-commerce sales grew by 44 percent, and the company expects sales to increase by another 40 percent this year.