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| Walmart sees growth in China and India; slow world recovery |
| AP/ PTI / Kuala Lumpur Sep 30, 2009, 14:16 IST |
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Retailing behemoth Wal-Mart Stores Inc sees great growth potential in China and India even as the global economic recovery will likely be lethargic.
International operations accounted for one-third of Wal-Mart's global sales and the proportion is expected to increase as the group focuses on larger markets in Asia.
"China is a big opportunity for us. We are just getting started in India, where there's great opportunity for us," Walmart chairman Robson Walton told a global CEO business conference here.
Wal-Mart has more than 250 stores in China but only ventured into India in May.
Bharti Wal-Mart Private Ltd, a joint venture between Bharti Enterprises and Wal-Mart, opened its first wholesale outlet called "Best Price Modern wholesale" in Amritsar.
The company has plans to invest $100 million over the next three years to open 10 to 15 more wholesale outlets.
But for now, it can only sell its 6,000 food and nonfood items to other businesses because Indian law prohibits foreign companies from selling direct to customers in multi-brand retail outlets to protect smaller domestic retailers.
Walton said the world recovery is going to be led by Asia although it's going to be very challenging. "I think this recovery is going to be a slow one."
Walton said "sales have been tough" for Wal-Mart even though it was benefiting from the economic downturn as more people shop at discounters for bargains including over-the-counter drugs and eat-at-home food.
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