Walmart now in India
Walmart's purchase of a 77% stake in the Indian online retailer Flipkart for US$16 billion has been confirmed. According to the NRF, Walmart’s longer-term intention is to publically list the business. While Walmart remains the giant of the retail world, its actions seem to be lacking strategic focus. Over the last 20 years, Walmart has chased foreign expansion, then started to divest from foreign markets (its exit from Asda is the latest such move) and now it has entered the online business in India. Along the way, in 2011 Walmart bought an online retailer in China but it struggles to compete against Alibaba. According to the AFR, Walmart’s US online business keeps losing money and with rising labour costs, these losses will get worse. As a public company, Walmart is under pressure to meet market expectations – looks to us like this undermines the retailer's ability to adopt and execute a long-term strategy.