Retailing heads East for the Asia pivot. CEO of Walmart says India is a key growth market for the company, along with China, and it will focus on allocating capital to these markets in a bid to grow business profitably. "In order to grow our business profitably, we're making strategic choices to simplify our portfolio and be more focused. For example, we've sold non-core assets like shopping malls in Chile and the Suburbia clothing chain in Mexico. Our emphasis for capital allocation is on our core North American markets (Mexico and Canada) and key growth markets (China and India). We are intentionally focused on investing in markets, channels, and formats that position us to win," he says.
Walmart India operates 20 stores in the cash-and-carry wholesale space under the Best Price banner across the country and plans to increase this number. The Indian subsidiary is evaluating foreign direct investment (FDI) guidelines for the food retail space in India as the government has permitted 100 per cent FDI in the sector. In China Walmart operates 424 retail outlets along with 15 wholesale stores according to the company. Its annual report says it will focus on growing through e-commerce route and will shy away from expanding its offline presence in the US market.
Meanwhile the retailer will look to strengthen its store presence along with technological capabilities outside of the US. "We'll continue to strengthen our stores around the world, we'll continue to build our e-commerce and digital capabilities, and we'll put them together in a way that saves customers time and money," says the CEO.