Going physical: Flipkart plans grocery stores

NEW DELHI: Walmart-controlled online retailer flipkart is planning to open brick-and-mortar stores in India to sell food items.

While foreign investors are not allowed into the retail space, Flipkart is looking to tap the “food retail” business where 100% FDI is allowed and lets the investor open physical stores.

The move comes after the company opened its fifth online grocery store, Super-mart in Mumbai.

According to A source “Globally, around 50-60% of Walmart’s sales come from food.The strategy of opening offline stores falls into Walmart’s overall scheme of things,”

Walmart , which prides itself on its food and grocery business but is only allowed to operate a business-to-business (B2B) wholesale segment in India due to FDI regulations, does not want to be left behind.

Flipkart’s foray into the food retail segment can also help Walmart’s cash-and-carry business, where revenue growth has been slow.

Food accounts for two-thirds of India’s overall retail market