Whilst Walmart stores in the States are facing major backlash and ongoing boycotts after caving in to pressures from the political right wing resulting in the discontinuation of Diversity, Equity, and Inclusion policies within the company, as well as for removing products of Latin origin from their shelves, Walmart Mexico is taking an almost opposing stance with its new “Made in Mexico” initiative which aims to prioritize national products rather than imports.
Walmart adopts the “Made in Mexico” campaign
A recent campaign promoted by the federal government will be adopted by Walmart branches in Mexico and Central America. This “Made in Mexico” program aims to increase the percentage of Mexican products sold in store. Currently, these locations boast a 91% dominance of products with Mexican origin sold across over three thousand stores in the regions. Despite this, Javier Treviño , senior vice president of corporate affairs at Walmart, shared that the retailer sees a possibility of increasing this percentage and as such, part of the team is currently reviewing potential Mexican substitutions for imported products.
“We have a working group that, as a result of the tariff issue or the suspension of these, has been analyzing the issue on a daily basis at Walmart in both Mexico and the United States and has been identifying different products that we were importing from other countries and that we could replace with national production,” Treviño added.
Additionally, of the thirty thousand suppliers currently working with the retailer, a substantial 85% are small and medium sized businesses (SMEs). Treviño shared that the company will be working towards increasing this percentage as the year progresses.
Customers will be able to identify items that are part of the “Hecho en Mexico” or “Made in Mexico” campaign through its distinctive signage that will be prominently placed throughout the stores. Information on the relevant products will feature the campaign’s official seal and will be found in the 7 million square feet of sales floors nationwide.
This latest campaign will joins the ranks of previous initiatives adopted by company to further contribute towards the development of the country. Some of these initiatives include a commitment to the Package Against Inflation and High Cost of Living (PACIC) which aims to ensure that the 24 products that make up a basic basket remains below the threshold of 910 pesos.
The retailer has also implemented the “Mexico embraces you” program through which the company offers a place and competitive salary to repatriated migrants.
“We are working with other companies, we are joining this effort so that repatriated Mexicans can find employment opportunities (…) there is a significant hiring effort in different regions and we want to give the opportunity to returning Mexicans to join the Walmart family,” Treviño shared.
Boycott impact
A boycott of major retailers known as “Freeze Latino Movement” gained heavy traction on social media platforms and has been ongoing in the United States after it was discovered that products of Latin and Mexican origin were no longer being sold in stores like Walmart. The movement encourages Mexican and Latin consumers to refrain from spending at these stores and has garnered great support.
Walmart Mexico, however, has not recorded any sort of decline in sales as a result of this movement.
Regarding the matter, Treviño claimed, “It is very clear that we continue to maintain the preference of our clients because we offer them quality, service and the lowest prices, and one thing is the world of social networks and another is the reality of our stores.”
He is also of the strong opinion that the Mexican economy — rather than expressions posted on social media — will determine any changes in the company’s projected flow for the year.
“We hope that the performance of the economy will improve, which is the fundamental thing, to the extent that the economy improves, and that is what the authorities have told us, and we hope that it does happen, consumption will improve,” he added.