Walmart to avoid food-only retailing in India

Walmart to avoid food-only retailing in India

New Delhi, May 30: Walmart will avoid investing in food-only ventures in India even after the acquisition of Flipkart, reports said.
Walmart wants to avoid the conditions and scrutiny associated with 100 percent investment in food-only retail ventures, a source said.
We could not independently verify the claims in the reports.
The Bentonville-based company prefers entering the food retail segment in India through third-party retailers.
“Walmart would rather handle the back-end of the food and grocery and that will help it escape the scrutiny and riders associated with food FDI retailing,” the source said, as quoted in the report.
Walmart has always made it clear that food-only retailing, both online and brick-and-mortar, is not viable due to the poor margins.
Walmart announced earlier this month that it’s acquiring a 77 percent stake in Bengaluru-based Flipkart for USD 16 billion.
Walmart rival Amazon last year received approval to invest up to $500 million in food retailing in India.
Amazon added 15 warehouses in India to expand its grocery delivery business.