Wal-Mart to set up 50 new cash & carry stores in next 4-5 years
Wal-Mart India, the wholly-owned Indian arm of U. S. retail giant, has announced its decision to set up 50 new cash & carry stores/wholesale outlets in the country over the next four to five years.
Scott Price, president & CEO of Wal-Mart Asia, said that the company would continue to focus on cash & carry format as it was committed as well as excited about its growth plans in the Indian market.
Announcing plans about setting up of new stores, Mr. Price said, "We will continue to focus on cash and carry format as we are very happy with the way it has shaped up in the last few years. The format is also poised to grow in India and we would like to serve the growing customer base."
The addition of 50 new wholesale outlets will take the total to 70 by the year of 2019. The cash & carry stores serve bulk purchases, such as caterers, hotels, traders and other business professionals that are registered with the outlets.
While Mr. Price said the company would continue to focus on its cash & carry business because it was very happy with the way it performed in the last few years; many analysts believe that political hurdles in the way of making foreign direct investment (FDI) in the multi-brand retail sector of India could have forced the Bentonville, U. S.-based company to take the decision.
BJP has announced in its recently published manifesto that it would not allow FDI in multi-brand retail sector if it wins the Lok Sabha Elections and forms the government.