NEW DELHI: Walmart-controlled on-line retailer Flipkart is making plans to open brick-and-mortar stores in India to promote meals items.
While foreign buyers don't seem to be allowed into the retail space, Flipkart is looking to tap the “meals retail” enterprise where 100% FDI is authorized and we could the investor open physical stores. The move comes after the company opened its 5th on-line grocery retailer, Supermart in Mumbai.
“Globally, round 50-60% of Walmart’s gross sales come from meals. The process of opening offline stores falls into Walmart’s overall scheme of things,” a source told TOI. Walmart, which prides itself on its meals and grocery enterprise but is handiest allowed to operate a business-to-business (B2B) wholesale section in India due to FDI regulations, does not need to be left at the back of.
Flipkart’s foray into the meals retail section too can help Walmart’s cash-and-carry enterprise, where earnings growth has been slow.
Food accounts for two-thirds of India’s overall retail marketplace
While a Flipkart India spokesperson did not respond to queries from TOI, sources stated, the move to open offline stores will permit Flipkart to profit from Walmart’s experience in meals and grocery.
Amazon, Walmart’s archrival globally, has dedicated an funding of $500 million in meals retail, each on-line and offline, via its meals retail arm Amazon Retail India. Other than purchasing a large stake in Aditya Birla Group’s meals and grocery retail chain, More, the Seattle-headquartered retail giant is also obtaining a stake in Kishore Biyani-led Future Retail, which runs Easy Day and Big Bazaar chain of stores.
Grofers and Big Basket, too, have were given government nod to promote in the neighborhood produced meals items and cling stock of the similar. With Amazon and now Mukesh Ambani-led Reliance Retail respiring down its neck, the Bengaluru-headquartered company is aggressively looking to make bigger its presence in India’s booming meals retail marketplace, which is ready to double to round $800 billion in 4 years. Apart from development separate provide chains for grocery, together with fulfilment centres and lastmile delivery networks, additionally it is in talks to obtain Bengaluru-based grocery chain Namdhari Fresh, which is able to help it leapfrog into the meals retail enterprise. Food recently accounts for two-thirds of India’s overall retail marketplace. Reliance Retail, too, is expected to typhoon Flipkart and Amazon’s turf, with its a lot touted e-commerce foray.
The Mumbai headquartered company operates round 10,500 offline stores in India spanning, wholesale, hypermarkets, supermarkets and speciality outlets, which it plans to leverage to take on the current marketplace leaders. Interestingly, the hot tweaks in FDI norms in ecommerce came as a big setback for Walmart, which spent round $16 billion to pick up 77% in Flipkart. The new rules punched a hole in Walmart’s plans to leverage Flipkart to cross-sell each different’s non-public manufacturers. In its home marketplace, the USA, a large bite of Walmart’s revenues comes from selling its own non-public manufacturers.
While foreign buyers don't seem to be allowed into the retail space, Flipkart is looking to tap the “meals retail” enterprise where 100% FDI is authorized and we could the investor open physical stores. The move comes after the company opened its 5th on-line grocery retailer, Supermart in Mumbai.
“Globally, round 50-60% of Walmart’s gross sales come from meals. The process of opening offline stores falls into Walmart’s overall scheme of things,” a source told TOI. Walmart, which prides itself on its meals and grocery enterprise but is handiest allowed to operate a business-to-business (B2B) wholesale section in India due to FDI regulations, does not need to be left at the back of.
Flipkart’s foray into the meals retail section too can help Walmart’s cash-and-carry enterprise, where earnings growth has been slow.
Food accounts for two-thirds of India’s overall retail marketplace
While a Flipkart India spokesperson did not respond to queries from TOI, sources stated, the move to open offline stores will permit Flipkart to profit from Walmart’s experience in meals and grocery.
Amazon, Walmart’s archrival globally, has dedicated an funding of $500 million in meals retail, each on-line and offline, via its meals retail arm Amazon Retail India. Other than purchasing a large stake in Aditya Birla Group’s meals and grocery retail chain, More, the Seattle-headquartered retail giant is also obtaining a stake in Kishore Biyani-led Future Retail, which runs Easy Day and Big Bazaar chain of stores.
Grofers and Big Basket, too, have were given government nod to promote in the neighborhood produced meals items and cling stock of the similar. With Amazon and now Mukesh Ambani-led Reliance Retail respiring down its neck, the Bengaluru-headquartered company is aggressively looking to make bigger its presence in India’s booming meals retail marketplace, which is ready to double to round $800 billion in 4 years. Apart from development separate provide chains for grocery, together with fulfilment centres and lastmile delivery networks, additionally it is in talks to obtain Bengaluru-based grocery chain Namdhari Fresh, which is able to help it leapfrog into the meals retail enterprise. Food recently accounts for two-thirds of India’s overall retail marketplace. Reliance Retail, too, is expected to typhoon Flipkart and Amazon’s turf, with its a lot touted e-commerce foray.
The Mumbai headquartered company operates round 10,500 offline stores in India spanning, wholesale, hypermarkets, supermarkets and speciality outlets, which it plans to leverage to take on the current marketplace leaders. Interestingly, the hot tweaks in FDI norms in ecommerce came as a big setback for Walmart, which spent round $16 billion to pick up 77% in Flipkart. The new rules punched a hole in Walmart’s plans to leverage Flipkart to cross-sell each different’s non-public manufacturers. In its home marketplace, the USA, a large bite of Walmart’s revenues comes from selling its own non-public manufacturers.
Going physical: Flipkart plans grocery stores
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Reviewed by Kailash
on
May 22, 2019
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