Walmart India, which runs 22 Best Price wholesale stores since its second entry into the country in 2019, is planning to increase the share of its private labels to top line to 10 per cent by next year as it plans to tap the Flipkart platform.
The company opened its 22nd store in Ludhiana late last month, which is the sixth in the state, where it began with and the second in the Punjab city. The firm will have 30 stores by the time it completes a decade of its second coming next year.
Globally, the retail major, which is bigger than Boeing, Coca-Cola, Facebook, and the Google parent Alphabet in total sales, nets around 20 per cent of its top line from private labels, which are low-priced but high margin items while from a volume perspective it is around 25 per cent, which it has already achieved in the country as well.
Walmart India closed fiscal 2017 with a top line of Rs 36.09 billion, up around 14 per cent, according to government filing. The numbers for FY18 is not available for Walmart.
“Currently, our revenue from private labels is 6-7 per cent from our two brands — Right Buy and Member's Mark, wherein the first is the cheaper than the other. We hope to take this to 10 per cent by 2019, when we close our first decade,” Walmart India Chief Executive Officer Krish Iyer told PTI.