The real estate global giant Wallmart has tied up with
Bharti Enterprises and they are facing a challenging task in the acquisition of
retail spaces mainly due to high costs. The restrictions on opening stores only
in cities with a population of 10 lakh and above is proving a hindrance since
real estate prices are disproportionately higher in such urban agglomerations.
The situation is made no easier with challenges in supply
chain due to restrictions in movement of goods across states in India . Bharti
Wallmart sees a reform in taxes as a possible solution. According to Raj Jain,
MD & CEO, they are redefining strategies and will come up with a working
solution in the next month. It plans to work out equity structure among
partners in the wholesale venture. The first retail store will probably go live
in the next 12 to 18 months. The main concern is high cost of real estate in
cities. A low priced retailer, they simply cannot afford high cost of rentals.
Mr Jain urged the government to remodel GST and allow freer movement of goods
to give a fillip to the retail industry which is an employment generator.
Bharti Wallmart may have to apply afresh for its retail venture since it has
permission only for wholesale.
Bharti Wallmart wants to prove that their entry will make a
marked difference across the entire chain, from growers to end consumers.
Bharti Wallmart has one store in Andhra Pradesh that is expected to become a
lead and motivate neighboring states to grant permission for more stores. It
has currently over 400 items carrying its label, with more expected in future.
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