Retail News Newsletter Columns Retail Jobs Dictionary Directory Calendar Policies Retail Edge Footprint

Home PageContact Us

Walmart Staying or leaving?
Posted On: 12-09-2013 00:00:00 13

As per a report in Economic Times, Walmart will take a call by the month-end on whether it will continue to do business in India or exit the country. The Walmart leadership in the US is reportedly divided over the company's future plans in India with one section led by chief executive Mike Duke being bullish about the country's future prospects and another group, that believes doing business in India is difficult with issues ranging from tough entry conditions for foreign multi-brand retailers, to a corrupt administrative system that makes it difficult for American corporations to do business without flouting US anti-bribery laws. Also, since Bharti Walmart, the 50:50 cash and carry joint venture between the US retailer and Bharti Enterprises, generates annual revenues of $500 million, the group that advocates a complete exit from India believes this is small change for Walmart, which grossed annual revenues of $466 billion last year.

It is reported that Walmart will decide in the next few weeks whether it wants to enter front-end retail or remain confined to the cash and carry business or exit the cash and carry business as well. It will also decide whether it wants to retain Bharti as its partner, if it wants to continue in India.

The company has to decide whether it can secure the multiple licenses required to open retail outlets in India without violating the US Foreign Corrupt Practices Act (FCPA) that bars American corporations from bribing government officials overseas. The ongoing investigations by the US federal authorities against Walmart's Mexico unit where company executives have been accused of bribing government officials is also weighing on the retail giant as it takes its decision about India.

Walmart's final decision about its future plans in India will have a crucial bearing on Bharti's future prospects in the retail sector. The company operates 200 retail stores and has been banking upon Walmart's funding and expertise to grow the business.

 
 
 

SocialTwist Tell-a-Friend

 

Want more stories delivered to your inbox?
Please sign up here for our free newsletter.

 
retail india Related News retail industry india
retail news videos on retail industries
Government considers proposal to free up retail FDI policy - but only for India-made goods
Saks Fifth Avenue planning India stores, in talks with Aditya Birla Fashion
QSR chains lean on travel retail to overcome slowing same-store sales
Budget 2016: What it did for the Retail Sector
Facebook co-founder Eduardo Saverin invests in Mumbai-based retailer Hopscotch
retail stores
retail policies
retail suppliers retail classes retail news
retail policies retail news retail india
retail training Current Newsletter retail industry
retail suppliers retail industry growth retail slowdown
retail policies retail news retail india
retail training (FY 2015 - 16) 3rd Quarter Results retail industry
retail suppliers retail industry growth retail slowdown
retail policies retail news retail india
retail training Search News retail industry
retail suppliers retail industry growth retail slowdown
latest retail news in your mail

retail industry



 
retail news
About Retail Angle   |  The Team  |  User Agreement   |  Privacy Policy  |  Advertise with Us  |  Feedback  |  Site Map  |  Contact us 
retail industry

indian retail