A day after declaring an investment worth USD 16 Billion in Flipkart, the biggest online retailer of India, Walmart Inc. now claimed that it will carry on to increase its business of wholesale cash-and-carry. It will do this by adding 50 new shops in the upcoming 4–5 Years.
“We presently have 21 shops and aim to start 50 shops in next 4–5 Years. Plans are in progress,” Krish Iyer, CEO and President of Walmart India, claimed to the media in an interview to clarify the Flipkart pact. Doug McMillon, the Chief Executive of Walmart, claimed that Flipkart group, in which the U.S. behemoth is obtaining 77% share, will carry on to work as a separate board-controlled firm with Binny Bansal (the co-founder) as the CEO.
Flipkart offers Walmart an online attendance. So far it had been blocked by retail policy of India that does not permit overseas firms to sell straightly to users (apart from wholesale cash-and-carry sector). Firms such as Amazon and Flipkart work as e-commerce platforms. It is a sector where 100% FDI (foreign direct investment) is permitted.
“As we talk, we have a plan of 20 shops and we anticipate starting 5 shops in the present year and then picking up speed and ultimately unlocking 12–15 shops each year,” Iyer claimed. For the cash-and-carry segment, Walmart presently works in 19 cities and 9 states and the additional expansion is aimed on more or less the same areas.
On a similar note, users can look forward for more discounts on handsets with a moneyed Amazon and a sturdier Walmart-Flipkart entity geared up for an extreme fight for a bigger share of the handset chart. The segment is amongst the biggest income generators for ecommerce behemoths, claimed experts. Walmart, the biggest retailer in the world, will also convey immense offline organized retail knowledge.