Walmart India posts 7% rise in revenue as losses decrease
The Indian unit of Walmart Stores posted a 7% rise in revenue and narrowed losses. It posted sales of ` . 3,996.8 crore for fifteen months ended March 2016 compared with ` . 2,991 crore during twelve months ended December 2014.
While sales grew 34%, the company grew 7% on an annualised basis. Losses declined from ` . 140.4 crore in the same . 232.2 crore to ` period. In the year the company opened one store after a gap of more than two years to take its store count to 21. The new store opened in Agra was also its first after becoming a fully-owned subsidiary of Walmart Stores.
“We are excited with this continuous progress and our contribution to the Indian economy through job creation, supporting `Make in India’ through local sourcing, supporting women entrepreneurs, small and medium enterprises, startup entrepreneurs and farmers,” said Krish Iyer, CEO of Walmart India, where more than 95% of goods sold are locally sourced.
“Through our growing footprint across the country , we will continue to grow our business profitably while contributing to the growth and prosperity of the nation.”
About three years ago, Wal-Mart agreed to buy Bharti’s 50% stake in their wholesale business that operated Best Price Modern Wholesale stores and terminated franchise and supply agreements related to almost 200 EasyDay retail stores. With the joint venture getting dissolved, Wal-Mart now sells goods only to traders, institutions and kiranas.The termination of supply agreement with EasyDay stores affected overall sales a year ago, when its revenue dipped 32%.
Most wholesale operators are bullish on expansion -rival Metro, which had not been able to capitalise on its first-mover advantage -wants to double wholesale stores to 50 by 2020. While latest performance isn’t available, Metro Cash & Carry India incurred a loss of ` . 142 crore on a turnover of `. 3,439.9 crore for 2013-14.