Walmart abandons retail plans, to sell to businesses only for now

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Walmart has decided to opt out of setting up retail stores in India.
Wal-Mart Stores Inc will launch its business-to-business e-commerce platform in the Indian cities of Lucknow and Hyderabad in the first week of July, the world's largest retailer's India boss said on Friday.

Sales through the firm's e-commerce service will be available only to its trader members, said Krish Iyer, India president and chief executive officer.

Iyer said Wal-Mart would look at rolling out this service to other cities, but not for another six months at least.

In April, Wal-Mart announced plans to open 50 more wholesale outlets in India and start online operations to sell to small shopkeepers, several months after it decided against opening its own retail stores.
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Source: http://m.economictimes.com/news/new...ace-in-india-in-july/articleshow/36496178.cms

Edit: thanks for title correction.
 
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Walmart Stores Inc, which for nearly a decade lobbied hard to get India to open up its supermarkets sector, will no longer canvass for allowing foreign companies to own majority stakes in multibrand retail and only concentrate on growing its existing wholesale cash-and-carry business.

Walmart presently runs 20 Best Price-branded wholesale stores in India and plans to add another 50 such outlets in the next four to five years. In October last year, Walmart announced it would end a six-year-old tie-up with Bharti and buy out the Indian group's stake in their wholesale venture, effectively going solo in India. Indian laws allow foreign retailers to own 100% of cash-and-carry businesses.
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Source: http://m.economictimes.com/news/new...and-retail-fdi-plans/articleshow/36514155.cms
 
They will destroy the countless middle men in between though. I guess larger marts will benefit buying whole sale. Small stores will probably buy from the marts since the distris don't give too many discounts on fmc goods.
 
^^ What are easyday stores ??
If you mean stores such as Big Bazaar, Reliance fresh, etc, then they're nothing in terms of aggressiveness compared to Walmart like American companies who would do anything for profit.
 
^^ yes, it's same as those Reliance stores... EasyDay is owned by Bharti (Airtel guys).

What I wanted to point out was that they (Walmart) were present in India for quite some time and that didn't destroy any small shopkeepers. There was much hue-n-cry couple of years ago, when Reliance announced their vegetable stores in malls. If numerous Reliance Fresh and Big Bazaars couldn't kill small time retailers then how could've Walmart pulled such an act? In cities, the efficiency and ease of shopping offered by the these big stores have taught some business sense to small shopkeepers.
 
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