This article was originally published on ETFTrends.com.
The Mexico country-specific ETF broke out and was leading markets Monday, with Walmart's Mexico unit providing a nice boost as it takes on Amazon south of the border.
Bolstering the Mexico country-specific ETF, Walmart De Mexico is gaining a competitive edge against rival Amazon after it forced some food companies supplying groceries to pull products from the world's largest online retailer.
Walmart De Mexico makes up 8.5% of EWW's underlying holdings.
Walmart last year demanded discounts from food businesses whose products were lowered on the Mexico's Amazon.com Inc. webpage, despite suppliers' claims that they had no say in the e-commerce giant's decision to undercut Walmart on pricing.
Two suppliers told Reuters they moved to pull their products from Amazon on concerns of jeopardizing their relationship with Walmart de Mexico, adding that Walmart makes up more than half of their supermarket sales in Mexico.
Have you signed up for the ETF Trends Virtual Summit on Wednesday, April 17? It's complimentary for financial advisors (earn up to 5 CE Credits)! Register now to learn about international markets, specifically weighting value, opportunity and risks.
Walmart stated it does not dictate whom suppliers can do business with, but it acknowledged that they strived to achieve the lowest price possible, especially if competitors are giving shoppers a better deal.
“We could never tell anybody that they can’t sell to someone else,” Ignacio Caride, Walmart Mexico’s e-commerce head, told Reuters. “If we think there’s an opportunity to lower our prices, because we see better prices at other retailers, we’re going to negotiate for that access.”
Supermarket analyst Bill Bishop argued that Walmart is trying to stop a repeat of what happened in the U.S. where Amazon is a dominant force.
“They’re worried that Amazon will grow in Mexico,” Bishop, co-founder of retail advisory firm Brick Meets Click, told Reuters. “They’re saying: Be aware of the fact that we’re not going to make it easy for you to grow here.”
For more information on the Mexican markets, visit our Mexico category.
POPULAR ARTICLES AND RESOURCES FROM ETFTRENDS.COM
- SPY ETF Quote
- VOO ETF Quote
- QQQ ETF Quote
- VTI ETF Quote
- JNUG ETF Quote
- Top 34 Gold ETFs
- Top 34 Oil ETFs
- Top 57 Financials ETFs
- Using Merger Arbitrage as a Hedge Against Market Volatility
- A Better Way to Determine Risk Exposure for Growth ETF Investors
- Report Findings Highlight Fake Bitcoin Trading on Unregulated Exchanges
- How to Manage A Mature Bull Market With Macro-Themed ETF Strategies
- In the Know: Building a Low Cost, Defensive Portfolio