Walmart Mexico names interim CEO

Ignacio Caride resigned from his positions as CEO and general manager of Walmart Mexico and Central America (Walmex), effective immediately last Friday, August 1st. Just 15 months after taking over the supermarket chain, he has not disclosed the reasons for his decision.

In response, Cristian Barrientos Pozo, president and CEO of Walmart Chile, will immediately and provisionally assume the leadership of Walmart Mexico and Central America.

This comes after the retailer's Board of Directors approved the appointment, while the selection process for the new CEO and executive chairman is completed.

Meanwhile, Guilherme Loureiro, former CEO and president of Walmex, will provide all necessary support during this transition and will continue in his role overseeing the supermarket chain's operations in Mexico, Central America, Canada, and Chile.

"We are very proud of everything we have achieved together and thank you for the way you have improved the omnichannel shopping experience for our customers and partners," Walmex said in a statement sent to the Mexican Stock Exchange (BMV).

He then recalled that since April 2024, Ignacio Caride and his team have led Walmex's operations in Costa Rica, El Salvador, Guatemala, Honduras, Mexico, and Nicaragua.

Achievements and challenges

Ignacio Caride's leadership was characterized by the drive for an omnichannel strategy, focused on integrating physical and digital sales. He faced a complex environment due to weak consumer behavior that has pressured profitability.

“Caride's tenure at Walmex underscored the company's focus on omnichannel capabilities, critical during the pandemic, but the company has recently struggled with declining margins amid a weak consumer environment and labor cost headwinds in a highly competitive industry,” said Antonio Hernández, senior analyst at Actinver.

This scenario led to Walmart Mexico and Central America's profits declining 8.4% to 23.544 billion pesos in the first half of this year, while its sales increased 7.4% to 487.228 billion pesos.

At the end of March, the former executive of Walmart Mexico and Central America announced an investment of more than $6 billion in Mexico by 2025 to expand its store network and build two new distribution centers.

Ignacio Caride also faced a fine of nearly $5 million (93.3 million pesos) imposed by the now-defunct Federal Economic Competition Commission (Cofece), now the National Antitrust Commission, after the authority formally notified him in October 2023 of an investigation into monopolistic practices.

In addition, he continued efforts to adapt to the upcoming labor reform, which will gradually reduce the 48-hour workweek in Mexico by 2030.

During Caride's tenure, Walmart opened 210 stores in Mexico and Central America, bringing the total to 4,124 units, up from the existing 3,914, before he takes over as CEO on April 30, 2024.

In Mexico, it added 176 stores, increasing from 3,015 to 3,191 units. In Central America, it added 28 establishments, raising the total from 871 to 899 registered units as of March of last year.

The stock market's performance was negative during Ignacio Caride's administration. Walmex's share price fell 17.29%, from 66.86 pesos to 55.30 pesos, the level recorded before he took office.

"The timing is unexpected, but positive in our opinion. We welcome the company's completely hands-on approach to improving performance," added Antonio Hernández.

Actinver's senior analyst believes that Cristian Barrientos' track record, along with that of Guilherme Loureiro—who was CEO of Walmex from 2016 to 2024 and currently leads operations in Mexico, Central America, Canada, and Chile—foreshadows a smooth transition.

This is due to the experience of Barrientos Pozo, who served as Senior Vice President of Operations for Walmart Mexico. In that position, he promoted the expansion of the operation, the opening of new stores and distribution centers, as well as its digitalization and the strengthening of e-commerce.