Walmart India to invest USD 500 million to open 47 more stores
Hyderabad, Oct 31 (PTI): Walmart India Wednesday said
it would invest about USD 500 million(about Rs 3,200 crore at
the current exchange rate)to open another 47 stores by 2022
to take the total number ofoutletsto 70.
Krish Iyer, President and CEO Walmart India, said that
out of the 23 B2B Cash and Carry stores, 19have achieved
break even with over a million members.
The global retail giant, which opened its 23rd
wholesale store in Visakhapatnam Wednesday, is in the process
of setting up a second store in Visakhapatnam and discussions
are underway for land.
"A typical store needs anywhere betweenUSD9 toUSD
10 million in terms of investment.
We are planning to take the total number of stores to
70by2022. That is the plan and we will also have e-commerce
space in all the stores.
So you can do the math. Yes, it needs USD 500
million," Iyer told PTI.
Walmart India became a wholly owned subsidiary of
Walmart Inc after it severed and exited from thefailedJoint
Venture with Bharti Enterprisesin 2014.
Iyer said the company also has plans to increase
fulfilment centres across the country.
Speaking about the Vizag store, he said it had come up
on 56,000 square feet andprovided employment to 2,000 people
directly and indirectly.
"This is now the fourth store in Andhra Pradesh. This
is the first store that we have opened inAPafterWalmart
India became a 100 per cent subsidiary.
We have a plan to open another store in
Visakhapatnam. We are looking for a site.Wehope to sign
thepropertyin the next three to four months. It takes about
three hours to open a store after we sign a property,"he said.
Iyer said the current contribution of private labels
to overall sales was in single digits and he expected it to
grow to about 20 per cent in the next two to three years.
On the possible cannibalisation of sales by its
recently acquired Flipkart, he said both are in different
While Flipkart focuses on individual customers,
Walmart provides B2B service, he said.
"Walmart India'sBestPrice e-commerce is about B2B.
Flipkart is the marketplace and has a lot of sellers who will
sell to end consumers.
In our e-commerce we don't sell to end consumers and
andourcustomers will sell to other business members.So there
is a difference.
There wont be any cannibalisation of sales because
our members are very loyal to us.
We have one million members with ours,he explained.
WalmartsBest Price Modern Wholesale Store stocks
over 5,000 itemsranging from fresh, frozen and chilled foods,
fruits and vegetables, dry groceries, personal to home care
items and electronic goods.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)