World's largest retailer Walmart considers India as a key growth market besides China. The company is planning to assign capital in order to expand business profitably in these markets.
"In order to grow our business profitably, we-'re making strategic choices to simplify our portfolio and be more focused. For example, we've sold non-core assets like shopping malls in Chile and Suburbia clothing chain in Mexico. Our priority for capital distribution is on our hub North American markets (Mexico and Canada) and key growth markets (China and India). We are intentionally focused on investing in markets, channels and formats that position us to win." said chief executive Doug McMillon in Walmart's annual report for 2017.
Walmart India currently operates entirely in the cash and carry wholesale business. Cash and carry stores are wholesale outlets, which are only allowed to sell to retailers, canteens and hotels. At present Walmart has 20 stores under the Best Price Modern retail banner across the country and is planning to open more stores. Walmart is looking to open 50 stores in the country over the next three to four years. Nearly half of the new stores will be opened in Uttar Pradesh and Uttarakhand. Under this new project, the company will be able to create over 40,000 jobs in UP and Uttarakhand, with each store providing employment to 2,000-2,500 persons.
Walmart India is also evaluating a new set of norms which allow 100 percent foreign direct investment (FDI) in India’s food retail sector. The retailer does not want to limit itself to locally produced and manufactured food products. "To allow 100% FDI in food retail by the government is a very progressive step, but having a certain percentage of non-food items in this policy will make it economically viable" Walmart spokesperson said.
Further to this McMillon stated that the company will focus more on growing through the ecommerce route and will continue to build up their stores around the world.
April 27, 2017