rgest retailer, Wal-Mart, has announced that it will open 50 new wholesale stores over the coming four to five years along with creating an e-commerce platform in India.It comes just days after the Hindu nationalist Bharatiya Janata party – expected to win control of India’s government in ongoing elections – stated its opposition to FDI in retail businesses as part of its pre-election manifesto.
It also comes several months after it decided against opening its own retail stores there. Last year, the American firm decided to part ways with its joint venture partner Bharti Retail over issues pertaining to clarity in policy and business operations.
Wal-Mart currently has 20 Indian wholesale outlets. They sell goods to small shopkeepers, who dominate the nation's $500 billion retail market, rather than directly to consumers. Wal-Mart has no retail stores in India.
"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 four-five years and extend the e-commerce platform to our cash and carry members with a virtual shopping opportunity," said Scott Price, president & CEO, Walmart Asia.
