Boston, MA 04/09/2014 (wallstreetpr) – Given the tight regulatory framework in India’s retail market, Wal-Mart Stores, Inc. (NYSE:WMT) has no plans of retail ventures in the country. Instead, the giant retail operator said it will open up to 50 new wholesale stores and e-commerce platforms in the country. This way, the company hopes to serve small businesses.
Although the company is interested in operating retail stores to take advantage of India’s big consumer numbers, the company halted plans for retail venture last year. It even went further to end tie-up with Bharti Enterprises.
In order for foreign retailers to run retail stores in India, regulators require that they obtain at least 30 percent of their products from the small businesses in the country. According to Wal-Mart Stores, Inc. (NYSE:WMT) executives, that requirement is currently unattainable for the company.
More wholesale and online stores
Wal-Mart Stores, Inc. (NYSE:WMT) announced that it will increase its cash-and-carry wholesale presence in India. The company plans to add between 40 and 50 more wholesale stores over the next four years. It currently owns and operates 20 wholesale stores in the country.
According to the company’s CEO for Asian operations, Scott Price, Wal-Mart Stores, Inc. (NYSE:WMT) is committed to grow in India through its current format. But the company will not let go an opportunity to go retail if regulators loosen the environment.
Online stores
Wal-Mart Stores, Inc. (NYSE:WMT) announced it will open its wholesale e-commerce platform next summer. Only one of its wholesale stores will operate online sales for the start. The company said that in a departure from the cash-and-carry tradition, it will provide delivery services to customers within 25 miles radius.
The online business is booming in India. Last year online retailers in India generated total revenue of about 139 billion rupee or about $2.3 billion. According to Mr. Price, the company is eager to make direct sales to consumers should regulators allow it to go ahead.
