Walmart India has fired 50 top officials from its Gurugram headquarters. It includes up to the Vice President of several divisions. The company announced this in a townhall held last week.
Ban on expansion plans!
It seems that the company’s business vehicle in India is stuck. According to a report in Economic Times, Walmart has also stopped expansion plans of many of its new stores in India. The company has also dissolved its real estate team engaged in the task of opening new stores.
When did Walmart come to India
Even after more than a decade in India, sales of Walmart India are sluggish and there is skepticism on profits. Significantly, in the year 2007, Walmart entered into the wholesale business of India by partnering with Bharti Group. In 2013, Walmart took over the entire 50 per cent stake in Bharti alone.
However, the company has not yet given detailed information about how many employees it has fired or whether the expansion plans have been stopped. A spokesman for the company said in a statement, “We are always looking for new ways to serve our members. For this, we need to review in our corporate structure so that we can better meet the needs of our members.
The spokesman said that this is the first phase of retrenchment and can be retrenched in April. It seems that Walmart does not see much future in offline business in India and will focus more on online business through Flipkart. Walmart bought Flipkart in the year 2018.
However, the company has been denying that it will go out of wholesale business. Walmart has around 21 cash and carry stores in India. These stores run under the name of Best Price Modern Wholesale Store (Best Price). These stores are in 9 states of the country. According to the information given on the website of Walmart India, at present, its business in India is based on membership.
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