Flipkart to invest in physical stores in India

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With the recent FDI (Foreign Direct Investment) norms proving to be a hurdle for Walmart, who acquired a 77% stake in Flipkart for $16 billion, Walmart looks to tap into the food retail space in India through Flipkart. As per a recent report, Flipkart will invest in physical retail stores, as the FDI norms allow foreign investors to invest 100% in the retail space in the Indian market.  

Flipkart to invest in physical stores in India

With 50-60% of Walmart’s international sales coming from food and with their inability to tap into the E-commerce market due to the FDI rules and share private brand partners with Flipkart, the entry of Flipkart into the brick-and-mortar space in India will help Walmart improve its cash-and-carry revenue and overcome the barrier of the recent E-commerce FDI rules. 

Source: Times of India     

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