{"id":1304,"date":"2013-10-10T12:14:12","date_gmt":"2013-10-10T12:14:12","guid":{"rendered":"https:\/\/www.thirdeyesight.in\/?p=1304"},"modified":"2022-08-30T12:15:44","modified_gmt":"2022-08-30T12:15:44","slug":"after-bharti-walmart-in-no-hurry-to-get-into-retailing-cash-and-carry-stores-remain-winning-formula","status":"publish","type":"post","link":"https:\/\/myechoproject.com\/TES\/after-bharti-walmart-in-no-hurry-to-get-into-retailing-cash-and-carry-stores-remain-winning-formula\/","title":{"rendered":"After Bharti, Walmart in no hurry to get into retailing; cash-and-carry stores remain winning formula"},"content":{"rendered":"\n<p> <i>Rasul \n                Bailay, The Economic Times<br>\n              New Delhi, October 10, 2013<\/i><\/p>\n<div class=\"row\">\n<div class=\"col-sm-8\"><p class=\"mt-3\">Wal-Mart \n                Stores, after its break-up with Bharti Enterprises, does not have \n                any immediate plan to get into retailing in the country, making \n                India the only market where the world&#8217;s largest retailer will \n                limit itself to the wholesale space. Why?<\/p>\n              <p class=\"mt-3\">Walmart officials in India say the company has found a winning \n                formula in the Best Price Modern Wholesale chain. They even say \n                that the Bentonville, Arkansas-based giant is so bullish on the \n                format that it plans to export the formula to other emerging countries \n                in Africa and Asia.<\/p>\n              <p class=\"mt-3\">Analysts say focusing on the 20 Best Price cash-and-carry stores \n                is the best option for the US giant as the business has proved \n                lucrative and finding partners for retail entry will take time.<\/p>\n              <p class=\"mt-3\"><b>&#8220;The current regulations mean Walmart would need an Indian \n                partner to set up retail operations and, keeping in mind their \n                discussions with other major Indian players, that would take a \n                while. So, going ahead with the 20 stores they have for the cash-and-carry \n                model seems to be the most logical thing to do,&#8221; Devangshu \n                Dutta, chief executive at retail consultancy firm Third Eyesight, \n                said.<\/b><\/p>\n              <p class=\"mt-3\"><b>&#8220;This will help them attain a critical mass in India \n                in setting up a retail business, if they wish to, in future. It \n                will also help them achieve a comfort level in working in the \n                Indian environment,&#8221; he said.<\/b><\/p>\n              \n              <p class=\"mt-3\">Walmart got into wholesale business in India by default, because \n                that was the only space foreign retailers were allowed to operate \n                in when it entered the country. India allowed FDI in multi-brand \n                retail space only last year.<\/p>\n              \n              <p class=\"mt-3\">But, thanks to several tough riders, big supermarket chains such \n                as Walmart and Carrefour have yet to enter the space despite the \n                government making the norms easier since.<\/p>\n              \n              <p class=\"mt-3\">The cash-and-carry business, in comparison, comes without any \n                restriction on foreign investment, and offers huge growth potential. \n                Industry officials estimate it will be a $22-billion (about Rs \n                1,36,000 crore) business in India by 2017 and the market leader \n                can eye revenues of about $5 billion (about Rs 31,000 crore) then.<\/p>\n              <p class=\"mt-3\">Sam Walton, the founder of Walmart, launched Sam&#8217;s Club wholesale \n                chain 30 yeas ago. Today, there are 700 membership-based Sam&#8217;s \n                Club. In the US, they can sell to all bulk customers, including \n                consumers.<\/p>\n              <p class=\"mt-3\">However, regulations in India do not permit cash-and-carry to \n                sell products directly to consumers and such venture must restrict \n                business to retailers and businesses.<\/p>\n              <\/div>\n<div class=\"col-sm-4\">\n              <p class=\"mt-3\"><img decoding=\"async\" data-src=\"https:\/\/www.thirdeyesight.in\/wp-content\/uploads\/2022\/08\/wal-mart-india-timeline-371x1024.jpg&quot;\" class=\"img-fluid d-block lazyload\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 371px; --smush-placeholder-aspect-ratio: 371\/1024;\"><\/p><\/div><\/div>\n<p class=\"mt-3\">Yet, the business has proved highly lucrative with thousands \n                of mom-and-pop storeowners in the country finding cashand-carry \n                outlets more convenient than local wholesale markets.<\/p>\n              <p class=\"mt-3\">Reliance Retail is also bullish in this space and plans to roll \n                out dozens of wholesale outlets. Also, by going solo, Walmart \n                can ensure it complies with anti-bribery norms of the US government.<\/p>\n              <p class=\"mt-3\">Bharti Walmart has not opened any store for a year and dismissed \n                some officials because of an internal probe to check if the India \n                unit has violated the US Foreign Corrupt Practices Act, which \n                prohibits American firms from bribing government officials in \n                foreign countries.<\/p>\n              <p class=\"mt-3\">In a joint statement announcing the break-up on Wednesday, Walmart \n                Asia head Scott Price said, &#8220;We will continue to make important \n                social and environment contributions to India, seeking conditions \n                that will boost retail FDI in India.&#8221;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Rasul Bailay, The Economic Times New Delhi, October 10, 2013 Wal-Mart Stores, after its break-up with Bharti Enterprises, does not have any immediate plan to get into retailing in the country, making India the only market where the world&#8217;s largest retailer will limit itself to the wholesale space. Why? Walmart officials in India say the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[3],"tags":[],"class_list":["post-1304","post","type-post","status-publish","format-standard","hentry","category-press-quotes"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>After Bharti, Walmart in no hurry to get into retailing; cash-and-carry stores remain winning formula - Third Eyesight<\/title>\n<meta name=\"robots\" content=\"index,follow\" \/>\n<link rel=\"canonical\" href=\"https:\/\/myechoproject.com\/TES\/after-bharti-walmart-in-no-hurry-to-get-into-retailing-cash-and-carry-stores-remain-winning-formula\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"After Bharti, Walmart in no hurry to get into retailing; cash-and-carry stores remain winning formula - Third Eyesight\" \/>\n<meta property=\"og:description\" content=\"Rasul Bailay, The Economic Times New Delhi, October 10, 2013 Wal-Mart Stores, after its break-up with Bharti Enterprises, does not have any immediate plan to get into retailing in the country, making India the only market where the world&#8217;s largest retailer will limit itself to the wholesale space. 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