Flipkart, India's largest e-commerce platform, is looking to launch brick-and-mortar grocery stores in India. The Walmart-controlled company’s move to open grocery stores comes after it opened its 5th online grocery store in Mumbai.
While foreign investors are not allowed into the retail space, Flipkart is trying to tap the food retail industry in the country where 100% FDI is allowed.
A source said, “Globally, around 50-60% of Walmart’s sales come from food. The strategy of opening offline stores falls into Walmart’s overall scheme of things.”
Walmart is known across the US for its food and grocery business. But, it is only allowed to operate the business-to-business (B2B) wholesale segment in India due to FDI regulations.
Flipkart’s entry into the food retail business will also boost Walmart's cash-and-carry business, where the revenue growth has been a little slow.