Thu. Mar 28th, 2024
Walmart

US retail giant Walmart plans to invest around ₹3,200 crore ($500 million), in order to add 47 new B2B cash and carry stores in India, to take the number of stores from 23, to 70 by 2022. The move will help Walmart build and expand its brand presence across India.

The news comes after Walmart launched its 23rd store in Vishakapatnam and looks to set up its second store in the city.

With an area of 56,000 square feet, the store in Vishakapatnam is expected to create employment for 2,000 people directly or indirectly.

Out of the 23 stores, Krish Iyer, President and CEO, Walmart India, claims that 19 stores have achieved break even with more than a million members.

Walmart India became a wholly owned subsidiary of Walmart Inc after it exited from the failed joint venture with Bharti Enterprises in 2014. The latest store is the first to be opened after Walmart India was made a wholly owned subsidiary of Walmart Inc.

“Cash & Carry business in India has a big potential. Over the next 10 years, it is estimated that the overall retail trade will be around $1.8 trillion, out of which $1.2 trillion will be traditional trade and around $600 billion will be modern trade,” said Iyer.

The retailer is also looking to increase the number of fulfilment centres across the country. It has recently opened two fulfilment centres and plans to open a third centre in Hyderabad.

Clarifying if Walmart’s latest acquisition of Flipkart will come into play regarding its offline business, Iyer said, “The two businesses – the marketplace business of Flipkart and the Best Price stores of Walmart India – will run independently. Flipkart continues to be a board-managed company,”

He added, “Walmart has made an investment in Flipkart to the extent of 77% shareholding but the entire management continues to be the same and they continue to operate completely independently. There is no plan for integration.”

By Varun

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