SOURCE: AXcess News

April 28, 2005 06:00 ET

Surge in Consumer Spending Boosts Wal-Mart Mexico

MEXICO CITY -- (MARKET WIRE) -- April 28, 2005 -- AXcess News has released a story covering Wal-Mart de Mexico SA's aggressive expansion across Mexico and how it's using unique products to spearhead competitive markets.

Wal-Mart de Mexico SA profits surged 27 percent in the first quarter aided by a four-year high in consumer spending. The No. 1 retailer in Mexico is seeing growth and looking to expand to another 200 cities.

Walmex, a subsidiary of Wal-Mart Stores, Inc., listed on the Bolsa Exchange, is aggressively planning on opening an additional 70 stores in 2005. A total of 200 cities were identified as new-store targets by Chief Executive Officer Eduardo Solorzano, 47, shortly after he took control of Walmex in late February.

While Walmex's expansion plans are considered aggressive, it only accounts for 4.5 percent of the market in Mexico, according to Solorzano, with room to expand.

Biotech Holdings Ltd. (OTC BB: BIOHF), a Canadian-based pharmaceutical manufacturer, announced Wednesday that the company had received its second order from Wal-Mart de Mexico SA for its diabetic drug, Sucanon.

According to Robert B. Rieveley, Biotech Holdings President, the order announced today marks the 137th Wal-Mart store in Mexico that now stocks the company's diabetic drug.

Rieveley noted that drugstore chains Farmacia Benavides, Nutrimania and Farmacia Paris also buy Biotech Holdings' diabetic drug. Rieveley said that his company now served over 600 stores in Mexico.

Solorzano was unavailable for comment on Wal-Mart's future plans when this story was published, or whether Wal-Mart intends on continuing to promote Biotech Holdings' Sucanon as it opens new locations.

Rieveley said his company was planning a TV commercial blitz across Mexico to promote Biotech Holdings' Sucanon diabetic drug. Rieveley's company is one of the first foreign pharmaceutical companies to use U.S. television marketing tactics in a South American market.

About AXcess News

AXcess News is an online news publisher in the USA covering news in 92 major market cities through its own network of news web sites. We are displaying this article in the hopes of building greater readership and to promote our news brand. To view news stories published by AXcess News, please go to http://www.axcessnews.com. Thank you.

Contact Information