Market News

Wal-Mart Sets its Sights on India

India appears to be the next frontier for retail giant Wal-Mart Stores Inc. as the company unveils plans to open hundreds of stores to grab its share of India's estimated $250 billion retail market. Wal-Mart has joined forces with Indian telecommunications firm Bharti Enterprises to help it get past restrictions in place that hinder foreign companies from setting up retail chains. Although financial terms of its arrangement with Bharti have not been revealed it is expected that the stores in India will be set up under franchise agreements. According to reports, the first stores are expected to appear in August 2007. Wal-Mart's foray into India—one of the world's fastest-growing retail markets and still largely dominated by "mom and pop" operations—follows disastrous stints in Germany and South Korea. Source: Canadian Grocer E-Newsletter, December 1, 2006.