Walmart preparing to cater to small traders; shop-keepers
Updated: Apr 09, 2014 03:07:55pm
New Delhi, Apr 9 (KNN) Unfazed by political opposition by major parties like the BJP, world's largest retailer Walmart will open 50 wholesale stores in India from where the small shop-keepers and traders can source their wares at competitive price. In the wholesale trading, the foreign direct investment is allowed, but there is a widespread opposition in multi-brand retailing.
The Bharatiya Janata Party (BJP) on Monday released its 52 page election manifesto in which it said that it will invite foreign direct investment in all sectors barring the multi-brand retail sector. While the Aam Admi Party (AAP) was similarly opposed to FDI in retail, the Indian National Congress backed FDI in multi-brand retail, saying it would bring better returns to farmers.
However, brushing aside all assertions of opposition to FDI in multi-brand retail, Walmart has announced plans to add 50 stores to its network of 20 outlets in the next five years.
The world's largest retailer also announced plans of starting an e-commerce platform for its buyers, including restaurants, canteens and kirana stores, through its Best Price Modern Wholesale stores.
“Wal-Mart is committed to India and we are excited about our growth plans. We will continue to focus on the cash-and-carry format as we are very happy with the way it has shaped up in the last few years. The format is also poised to grow in India and we would like to serve the growing customer base by opening 50 new cash-and-carry stores over the next 4-5 years and extend the e-commerce platform to our cash-and-carry members with a virtual shopping opportunity,” said president and CEO, Walmart Asia Scott Price.
“Along with our growth, we are taking a number of important steps to strengthen compliance so that we do the right thing everyday. We are evaluating and reinforcing procedures and programmes relating to all compliance areas, including licensing and permits, food safety, and responsible sourcing among others," he added.
Experts believe that it makes good business sense to focus on wholesale business. Considering that wholesale markets are not developed in smaller towns, small traders and businessmen have to travel to bigger cities to shop for their businesses. If Walmart opens new outlets, each of them would have the potential to carry out business worth Rs 50-100 crore a year, they say.
Walmart India Private Limited is a wholly owned subsidiary of Wal-Mart Stores Inc. Walmart India owns and operates 20 best price modern wholesale stores in 8 states across India. The first store opened in Amritsar in 2009.
One among several global chains seeking entry into India, Walmart has faced probe into allegations that it lobbied Indian government officials; even though no conclusions were made.
Although the government had allowed 51 per cent FDI in multi-brand retail over a year ago, to date only Tesco received a green signal from the government for a joint venture with the Tata group. Others like Walmart and Carrefour are awaiting consensus among political parties. (KNN/ES)
The Bharatiya Janata Party (BJP) on Monday released its 52 page election manifesto in which it said that it will invite foreign direct investment in all sectors barring the multi-brand retail sector. While the Aam Admi Party (AAP) was similarly opposed to FDI in retail, the Indian National Congress backed FDI in multi-brand retail, saying it would bring better returns to farmers.
However, brushing aside all assertions of opposition to FDI in multi-brand retail, Walmart has announced plans to add 50 stores to its network of 20 outlets in the next five years.
The world's largest retailer also announced plans of starting an e-commerce platform for its buyers, including restaurants, canteens and kirana stores, through its Best Price Modern Wholesale stores.
“Wal-Mart is committed to India and we are excited about our growth plans. We will continue to focus on the cash-and-carry format as we are very happy with the way it has shaped up in the last few years. The format is also poised to grow in India and we would like to serve the growing customer base by opening 50 new cash-and-carry stores over the next 4-5 years and extend the e-commerce platform to our cash-and-carry members with a virtual shopping opportunity,” said president and CEO, Walmart Asia Scott Price.
“Along with our growth, we are taking a number of important steps to strengthen compliance so that we do the right thing everyday. We are evaluating and reinforcing procedures and programmes relating to all compliance areas, including licensing and permits, food safety, and responsible sourcing among others," he added.
Experts believe that it makes good business sense to focus on wholesale business. Considering that wholesale markets are not developed in smaller towns, small traders and businessmen have to travel to bigger cities to shop for their businesses. If Walmart opens new outlets, each of them would have the potential to carry out business worth Rs 50-100 crore a year, they say.
Walmart India Private Limited is a wholly owned subsidiary of Wal-Mart Stores Inc. Walmart India owns and operates 20 best price modern wholesale stores in 8 states across India. The first store opened in Amritsar in 2009.
One among several global chains seeking entry into India, Walmart has faced probe into allegations that it lobbied Indian government officials; even though no conclusions were made.
Although the government had allowed 51 per cent FDI in multi-brand retail over a year ago, to date only Tesco received a green signal from the government for a joint venture with the Tata group. Others like Walmart and Carrefour are awaiting consensus among political parties. (KNN/ES)
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