The Arkansas-based company, which has 21 stores in India, plans to open 50 more stores in the next four-five years, according to the publication.
The CPI-M said it was common knowledge that Walmart sourced its products from worldwide markets and now these will be sold in India, further destroying the small scale and medium scale sector which is the largest provider of employment after the agricultural sector. This in a way is giving competition to brands such as Metro Cash and Carry and also at the same time, making sure it does not lose out on the omnichannel experience it can offer, with its strong capabilities in the retail space.
"As we speak, we have a pipeline of 20 stores and we expect to open 5 stores in the current year and then pick up the pace and eventually start opening 12-15 stores a year", Iyer quoted as saying. It will take a call on the exit in the next 10 days and discussions regarding the transaction, as well as SoftBank's role in the homegrown ecommerce company going forward, are still on with Walmart.
Chirag Haria, founder of Aarogyam Energy Jewellery, a top jewellery seller on Flipkart, said the seller community is somewhat anxious about Walmart's private labels.
Walmart has retained the Flipkart management led by Binny Bansal while Sachin quits from the company.
Walmart who is buying a controlling stake on Flipkart will invest $2 billion in fresh equity.
"While Amazon has AmazonNow, Flipkart would like to tap Walmart's supply chain expertise in building up its Grocery offerings".
Marketwatch shares some insight on Amazon's battle for market share in India. Founder Jeff Bezos has promised to pump in more than United States dollars 5 billion to win the Indian online retail market. Lately, Walmart has been facing a decline in its sale, but with Flipkart, it can increase its market value in India. More than 3,000 employees of Flipkart and its fashion arms Myntra and Jabong, and its payments arm PhonePe had participated in that repurchase exercise. Now, the company says that it has notified Flipkart of its intentions to sell its equity holdings in Flipkart, which eBay estimates to be 1.1 billion Dollars in value.
Sellers have always been at loggerheads with online marketplaces Flipkart and Amazon on several issues including discounts sharing, commission margins, and alleged edge afforded to in-house vendors.
The statement also said that Walmart's collaboration with Flipkart will also support small businesses by procuring directly from them.