US-based multinational firm Walmart is planning to convert few of the two dozen wholesale stores into fulfilment centres for e-commerce major Flipkart.
The step has been taken as a part of a restructuring process of its cash-and-carry business, people aware of the development confirmed.
“Out of the 28 stores, 6 will be converted into fulfilment centres,” a source said. Another person aware of the matter said that Walmart is planning to turn many more of its ‘Best Price’ brand cash-and-carry stores into warehousing in the months to come.
Previous month, Walmart had said that it had sacked more than 50 employees in India as a part of a restructuring process and to compensate for its loss-making Walmart India business which runs the 28 Best Price stores across the country.
There has been a series of events since Walmart started working on its physical retailing business in India.
In 2013, it called off a 50:50 joint venture with Bharti Enterprises to go solo with its wholesale business, where India allows 100 per cent overseas investment even though such ventures cannot sell to consumers directly. After parting ways with Bharti Enterprises, Walmart stopped its expansion drive for a considerable time.
The US giant’s Best Price stores had accumulated losses of Rs. 2,180.80 crore by March 2019; however in the previous fiscal year, Walmart India posted sales of Rs. 4,095 crore on a net loss of Rs. 171.6 crore.
