International Development News
Development News Edition
Give Feedback

BIZ-WALMART


PTI Hyderabad
Updated: 31-10-2018 16:58 IST

Walmart India to invest USD 500 million to open 47 more stores

by 2022

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

segments.

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.)

COUNTRY : India