Walmart's timing regarding its latest international expansion is interesting, to say the least.
After not opening any wholesale stores in India last year, and ending its partnership with Bharti Enterprises in October, the company plans to open 50 more such outlets and an e-commerce site, Reuters reports. The announcement came as the world's second most populous country began a six-week nationwide election process. Depending on how that goes, Walmart could apply to sell directly to consumers, a revolutionary move.
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India does not permit foreign entities to own retail stores in the country, nor sell directly to consumers online. Wholesale outlets, however, are allowed. Laws permitting foreign direct investment (FDI) have been discussed for years, though the nation's economy has slowed greatly recently, notes the Toronto Star.
The company has 20 Cash and Carry clubs that serve local stores, said Scott Price, President & CEO, Asia at Walmart, in a television discussion of retail challenges in Asia.
Is Walmart prescient by expanding now?
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