Magazines Archives - 2007 January

Wal-Mart beats Tesco to retail tie-up in India
Story 7

WAL-MART STORES has inked a deal with Indian telecommunications giant Bharti Enterprises for its retail venture, beating the UK’s Tesco to it.

The highly-anticipated joint venture, with undisclosed financial details, is expected to open stores starting this year, with several hundred more across the country over the next four to five years.

Under the deal, procurement, inventories and logistics will be managed under a joint venture, with stores set up under a franchise agreement, said reports in the local newspapers.

Wal-Mart, which has been mulling over its entrance into the vast Indian market for some time, last May appointed Raj Jain pre-sident of Wal-Mart Emerging Markets to gear up for its entry.

Jain, who is also CEO designate of the
US retailer’s Indian operation, has been leading a small liaison team in preparation for the foray.

IGD’s senior business analyst international, Fiona McTavish, said the tie-up was “typical” of Wal-Mart’s targeting of “developing markets with large-scale growth opportunities”, observing that the US giant’s latest move “follows its rapid growth in
China and Brazil”.

“Wal-Mart, however, only operates a very small number of franchised stores in its global portfolio. Today’s news suggests that [it] has accepted the need to divert from its preferred operating model to establish operations in India.

“[The retailer] will, however, benefit from Bharti’s knowledge of the Indian market and the Indian consumer, to enable it to success-fully tailor its proposition.”

The Indian economy has been estimated at more than US$200 billion, pegged at 8% annual
growth. It is currently 95% domi-nated by more than 12 million mom-and-pop shops


2007 January Stories:

Retail Outlook 2007- Opportunities and challenges ahead
Indonesian retailers enjoyed buoyant 2006

JT Network brings DC superheroes to Singapore

SM Investment acquires supermarket, hypermarket

Capitol Optical sets up first lifestyle concept store for eye care in the region
Lippo poised to open high-end stores in China

Jaeger looking East for the long haul  

Wal-Mart beats Tesco to retail tie-up in India 

Siri Mahamart uncovers Rs1 billion retail plan

Robinson wins rights to open River Island stores in Singapore and Malaysia

Harvey Norman goes to Penang

Shanghai Tang steps up presence in fashion cities

US Home Depot acquires Home Way

Best Denki in first major Viet franchise

China retail sales projected to grow by 13%

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