Bharti Wal-Mart, the joint venture between US retailer Wal-Mart and Indian conglomerate Bharti Group, has confirmed that it intends to increase its pace of store openings in India.
In 2007, Bharti Wal-Mart had indicated that it planned to open between ten and 15 Best Price Modern Wholesale stores over the next seven years. However, the company has now confirmed that it intends to step-up its rate of expansion and reach this goal at least one year ahead of schedule.
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“With the softening of real estate prices, and given the positive response we have received from our members in our two Best Price Modern Wholesale cash-and-carry stores, we plan to open ten to 15 cash-and-carry stores and employ approximately 6,000 – 7,000 people over the next three years,” a spokesperson for Wal-Mart India told just-food.
The spokesperson also suggested that the company is “optimistic” that the Indian government will relax rules governing foreign direct investment (FDI) in the retail sector.
“Our view is that FDI should open in multi-retailing. We believe it is good for India and the development of a robust supply chain,” the spokesperson insisted.
Currently, international retailers are prohibited from operating multi-brand outlets that sell directly to consumers.
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By GlobalDataHowever, global retialers have long eyed the fast-growing market. Alongside Wal-Mart, the likes of Tesco and Metro have also established wholesale operations in India, while Carrefour said yesterday (12 May) that it would open its first cash and carry in the market “within months”.
Wal-Mart’s spokesperson indicated that – if FDI restrictions were to be lifted – the world’s largest retailer would move quickly to expand into consumer retailing in urban areas and tier II and tier III towns.
“India is one of the most exciting countries in the world today and we welcome an opportunity to play a part and contribute to the country’s growth momentum,” the spokesperson said.
