Walmart-Bharti JV break up puts question mark on thousands of employees’ future
The break up of Bharti and WalMart's joint venture (JV) in the cash-&-carry space has put a question mark on the future of as many as 4,000 employees.
While the US retail giant has assured that it would keep on investing its cash-&-carry business in the world's second most-populous country, industry experts believe that the break up could force the company to close some of its stores.
The Bharti-WalMart JV used to operate a total of 20 stores under the brand name of `Best Price Modern Wholesale' across the country. Each of those stores employed, on average, 200 people. The Best Price Modern Wholesale store also provided indirect employment for many others.
A global audit & consultancy firm said, "The locations of a lot of these stores were kept near Bharti's `easyday' stores . now whether Wal-Mart feels it will be feasible to continue with those locations remains to be seen."
Bharti's easyday front-end stores used to source 25 per cent of their goods from the WalMart's cash-&-carry JV, but analysts now doubt the front-end stores will keep on sourcing items from the US retailer's cash-&-carry stores unless there is a considerable advantage in pricing.