In a global first, Wal­Mart India eyeing ‘food­-only’ retail model

MUMBAI: The world’s largest retailer Wal-Mart is evaluating a food-only retail store model for India, but would start it only after proper ground work as it would

MUMBAI: The world’s largest retailer Wal-Mart is evaluating a food-only retail store model for India, but would start it only after proper ground work as it would be the company’s first such venture.

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“We don’t have a food-only model anywhere in the world. We will have to see how to make it work from a customers point of view and from an economic model point of view; how to make sure it becomes profitable, scalable and sustainable from our point of view,” said Krish Iyer, CEO, Wal-Mart.

Customers prefer a mix of food and other products in stores, he said.

India recently allowed 100% foreign direct investment in retail of food products manufactured in India. Wal-Mart says the move will benefit retailers, consumers and farmers.

Wal-Mart currently operates 21 wholesale stores in India and food retail accounts for 65% of its total sales, hence focusing on foods makes sense going ahead, Iyer said. It plans to expand to 50 stores over five years.

“Particularly relating to the importance of food for the customer and announcements related to FDI etc, we will continue to focus a lot more on food in our cash and carry stores,” said Iyer.

The company said it is also seeing good traction in its business-to-business (B2B) ecomerce that it launched in 2014. While Iyer refused to share sales numbers, he said around 50% of buying today is influenced digitally, meaning a consumer is either searching a product online and buying it in-store, or checking the product in store before ordering it online.

Resellers, particularly momand-pop stores, are the most important channel for Walmart, he said.