New Delhi, April 8 - The world’s biggest retailer, Wal-Mart, today announced that it will expand its business of wholesale or cash and carry stores in India but there was no mention of an entry into the multi-brand retail segment. The Wal-Mart announcement comes just a day after the BJP released its manifesto opposing FDI into multi-brand retail.
After facing corruption allegations in India, Wal-Mart also said it would strengthen its systems. It will also launch an online platform to sell to traders.
Wal-Mart is now going solo in India after its joint venture with Bharti Enterprises broke six months ago.
Wal-Mart India will continue to invest and expand this established business of cash and carry. As part of the growth plans, it plans to open 50 cash-and-carry outlets in the next four to five years even as it continues to invest in its supply chain infrastructure and supplier development.
Wal-Mart India is also extending the B2B e-commerce platform to its Best Price Modern Wholesale store members, providing them with a convenient online shopping opportunity. As an exclusive virtual store for its members, the e-commerce platform will provide a similar assortment of products, as well as special items.
Scott Price, president & CEO, Wal-Mart Asia, said, “Wal-Mart is committed to India and we are excited about our growth plans. We will continue to focus on the Cash and Carry format as we are very happy with the way it has shaped up in the past few years. The format is also poised to grow in India and we would like to serve the growing customer base by opening 50 new cash-and-carry stores over the next four-five years and extend the e-commerce platform to our Cash and Carry members with a virtual shopping opportunity”.
Wal-Mart, which had investigated violations of the US Foreign Corrupt Practices Act in its Indian arm, is ensuring they are not repeated.
Price emphasised that Wal-Mart was committed to follow compliance norms. “Along with our growth, we are taking a number of important steps to strengthen compliance so that we do the right thing everyday. We are evaluating and reinforcing procedures and programs relating to all compliance areas, including licensing and permits, food safety, and responsible sourcing among others”, he said.
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