Looters have sacked at least 250 stores across seven Mexican states this week, reflecting growing unrest over a 20 percent rise in government-controlled gasoline prices.
Wal-Mart de Mexico SAB, Grupo Comercial Chedraui SAB, Grupo Elektra and Organizacion Soriana SAB stores were among those targeted in a wave of anger about the "gasolinazo," or fuel-price slam. Looting, pre-emptive store closings and truck robberies have been widely reported in press and social media since Tuesday night.
Even before the unrest, retailers were expected to take the biggest hit by the price change. The increase is likely to erode purchasing power and consumer sentiment that's already suffering as a weaker peso fuels concern about inflation.
The government is letting gasoline prices surge as part of a plan to gradually cede control of the fuel market to private development after a landmark energy overhaul in 2013.
Antad, the Mexican retailers' association, said it was a "tough" night for stores and that government efforts haven't been enough to calm the situation. The association is meeting with Economy Minister Ildefonso Guajardo to discuss the matter, Manuel Cardona, the group's head of government relations, said in an interview with Radio Red on Thursday. The economic fallout hasn't been estimated, he said.
Walmex, Soriana, Elektra and Chedraui didn't immediately respond to requests for comment. Shares of Walmex, controlled by U.S. retail giant Wal-Mart Stores Inc., fell as much as 2.1 percent in Mexico City trading.
President Enrique Pena Nieto said Wednesday that he understood public anger over the gas-price increase, but that it was a necessary move to reflect higher global prices.
Business on 01/06/2017