Walmart plans to sell its retail operations in Argentina to South American grocery chain Grupo de Narváez.
Walmart didn’t disclose the size of the deal for retail operations involving more than 90 stores, but it said it would record about a $1 billion after-tax non-cash loss related to the sale in its fiscal third quarter in 2021, according to Reuters,
The sale comes as Argentina, mired in recession since 2018, has just emerged from a sovereign default and is grappling with a currency crisis. The government has been fending off talk that international firms are looking for the exit.
Walmart sold the majority of its unit in Brazil in 2018, though it maintains major operations in Chile and Mexico. The exit from its business in Argentina, where it began operating in 1995 and currently has some 9,000 employees in 92 stores, would include its popular Changomas and Punto Mayorista chains.