Wal-Mart to Launch E-Commerce and Open Wholesale Stores in India

By Laurie Burkitt 

BEIJING-- Wal-Mart Stores Inc. is launching e-commerce and adding wholesale stores in India to sell to small businesses after shelving its hopes last year to open retail stores in the country.

The world's largest retailer by sales plans in the next four years to open 40 to 50 additional wholesale stores in India, adding to its current 20, said Scott Price, chief executive of Wal-Mart's Asia division, in an interview Tuesday. "We are quite committed to the Indian market and the ability to grow through that format," Mr. Price said.

Mr. Price said the Bentonville, Ark., retailer's India-based cash-and-carry wholesale business will also roll out online sales this summer. He said the model will start small, with only one wholesale store posting its products for sale online. Mr. Price added that the store's staff will deliver the goods to the mom-and-pop stores that order them as much as 40 kilometers (about 25 miles) away, he said.

Wal-Mart said in October it would pause plans to open retail stores in the country and end its joint venture with Bharti Enterprises Ltd. Wal-Mart faced difficulties navigating Indian regulations that require foreign retailers to get 30% of their products and services from local small businesses.

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