Mumbai: Walmart India, the Indian arm of Wal-Mart Stores Inc., that has been testing out an e-commerce option for its wholesale business at two stores in Hyderabad and Lucknow is encouraged by its experience and will now extend this to all its stores across India.
Walmart India has a cash-and-carry business for its registered business members, largely small and mid-sized retailers. It is to these customers that it is offering an e-commerce option, where members can order their merchandise online and have it delivered at their doorstep. “The response has been very good (in the pilot in Lucknow and Hyderabad) and we are learning more about the members, what they need, and are fine-tuning the operations accordingly,” said Kris Iyer, president and chief executive officer, Walmart India, on the sidelines of the India Retail Forum in Mumbai.
“We are rolling it (the e-commerce option) out in the remaining 18 stores by January.” Walmart India plans to launch 50 new stores in the next five years, which will also have the online option, said Iyer, who is now looking to create mobile applications that can serve the company’s customers better. The company exited its joint venture with Bharti Enterprises Ltd in October last year.
That joint venture involved running a cash-and-carry business jointly and providing expertise and support to Bharti’s own front-end retail business. Indian law allows foreign retailers to invest up to 51% in supermarkets, but this policy, drafted in 2012 when the United Progressive Alliance (UPA) government was in power, is now only on paper, with the new National Democratic Alliance (NDA) government not in favour of it.
Trade minister Nirmala Sitharaman said recently that there are no applications from foreign retailers to this effect currently pending before the government. The only international retailer that has come to India under the new policy is Tesco Plc., which has formed a 50:50 joint venture with Tata group company Trent Ltd in March, named Trent Hypermarket Ltd, for operating Star Bazaar retail business in India. Foreign retailers are keen to do business in India, which has a retail market worth an estimated $554 billion, according to recent Crisil report. Only about 8% of this is accounted for by organized retail.
“Retail is a big opportunity in India and we are watching the space on the policy front,” said Iyer.
Walmart India has a cash-and-carry business for its registered business members, largely small and mid-sized retailers. It is to these customers that it is offering an e-commerce option, where members can order their merchandise online and have it delivered at their doorstep. “The response has been very good (in the pilot in Lucknow and Hyderabad) and we are learning more about the members, what they need, and are fine-tuning the operations accordingly,” said Kris Iyer, president and chief executive officer, Walmart India, on the sidelines of the India Retail Forum in Mumbai.
“We are rolling it (the e-commerce option) out in the remaining 18 stores by January.” Walmart India plans to launch 50 new stores in the next five years, which will also have the online option, said Iyer, who is now looking to create mobile applications that can serve the company’s customers better. The company exited its joint venture with Bharti Enterprises Ltd in October last year.
That joint venture involved running a cash-and-carry business jointly and providing expertise and support to Bharti’s own front-end retail business. Indian law allows foreign retailers to invest up to 51% in supermarkets, but this policy, drafted in 2012 when the United Progressive Alliance (UPA) government was in power, is now only on paper, with the new National Democratic Alliance (NDA) government not in favour of it.
Trade minister Nirmala Sitharaman said recently that there are no applications from foreign retailers to this effect currently pending before the government. The only international retailer that has come to India under the new policy is Tesco Plc., which has formed a 50:50 joint venture with Tata group company Trent Ltd in March, named Trent Hypermarket Ltd, for operating Star Bazaar retail business in India. Foreign retailers are keen to do business in India, which has a retail market worth an estimated $554 billion, according to recent Crisil report. Only about 8% of this is accounted for by organized retail.
“Retail is a big opportunity in India and we are watching the space on the policy front,” said Iyer.
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