Walmart India annual revenues decline 32 percent

American retail giant Walmart, which has been operating in the wholesale segment in India after parting ways with Bharti Retail has posted a 32 percent drop in revenues to Rs 2,992.7 crores in the year ended December 2014. With no new stores opened during the year, the company narrowed its loss to Rs 232 crores, according to filings with the Registrar of Companies.

Its competitor, German retailer Metro AG, which so far could not succeed in capitalising on its first-mover advantage, began following up an aggressive strategy after its German parent indicated that it wants operate 50 wholesale stores in the country by 2020, up from about 18 now. Metro Cash & Carry India incurred a loss of Rs 142 crores on a turnover of Rs 3,439.9 crores for 2013/14.

Experts point out that there are two reasons for revenue decline at Walmart: One, because stores are located on the outskirts of cities unlike Metro wholesale centres; second, local ecommerce players active in the wholesale space have been offering huge discounts.

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* However, with 21 cash and carry stores in India at the moment, Walmart is bullish on India. After parting ways with Bharti, the company is busy expanding its reach focusing on wholesale cash and carry business in the country and is also eyeing 50 stores by 2020.