Business · Companies · 2 hrs ago
Walmart Mexico plans automation as wages and working-hour changes raise costs
Walmart de México says doing business in the country is becoming more costly as wages rise and working hours are set to fall.
The company expects Mexico’s minimum wage to increase by about 12% in 2027, but the final figure will be decided in December.
A labor reform will gradually reduce the weekly work limit from 48 hours to 40 hours by 2030, starting with a 46-hour limit in 2027.
Walmart says these changes will add to its operating costs and require businesses to adjust shifts and operations.
The retailer plans to expand automation and improve productivity to contain the extra costs while keeping its low-price strategy.
It has completed digital shelf-label installations in more than 100 Walmart Express stores and plans to add the technology in 200 to 300 more in the first half of 2027.
Walmart also plans an automated distribution center in the Bajío and other changes to inventory and supply operations.
Walmart de México plans to accelerate automation and productivity measures as higher wages and shorter working hours raise operating costs.
Chief executive Cristian Barrientos Pozo said the company expects the minimum wage to rise by around 12% next year.
A labor reform will gradually cut the standard workweek from 48 hours to 40 hours by 2030, starting with a 46-hour limit in 2027.
Walmart plans to extend digital shelf labels to 200 to 300 more stores in the first half of 2027.
The company also plans to open an automated distribution center in the Bajío region and pursue other efficiency measures.
- Who
- Walmart de México y Centroamérica, whose chief executive is Cristian Barrientos Pozo.
- What
- The company plans to accelerate automation and productivity initiatives to limit rising operating costs.
- When
- The plans address costs expected next year. Some measures are planned for the first half of 2027.
- Where
- Mexico, including Walmart Express stores and a planned distribution center in the Bajío region.
- Why
- A projected minimum-wage increase and a gradual reduction in weekly working hours are expected to increase operating costs.
This story does not have two clearly opposing sides.
Walmart worked closely with its global team to prepare for changes to working arrangements in Mexico.
The company completed installation of digital shelf labels in more than 100 Walmart Express stores.
The percentage of the minimum-wage increase for 2027 is expected to be known after negotiations conclude.
The gradual reduction of weekly working hours begins, with the limit moving from 48 to 46 hours.
Walmart plans to install digital shelf labels in another 200 to 300 stores.
The gradual reduction of the standard working week is scheduled to reach 40 hours.
- Expected minimum-wage increase
- Around 12% next year
- Working-hour limit in 2027
- 46 hours per week
- Working-hour limit by 2030
- 40 hours per week
- Digital shelf labels
- Planned for 200 to 300 more stores in the first half of 2027
- Automated distribution center
- Planned for the Bajío region
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What people are saying
We have important projects planned that we hope will help us mitigate the cost of doing business in the country and try to offer our value proposition to all customers.
We have many initiatives in which we have full confidence to be well prepared to contain all these costs of doing business next year.
We recognize that we are living in an inflationary environment in SG&A, so it is not just about costs, but also about accelerating sales and integrating sales growth with SG&A growth.