Walmart’s warehouse division, Sam’s Club, named after its founder Sam Walton is planning to setup its members-only warehouse club in India, reports Financial Express.
The club accounts for 12% of Wal-Mart’s sales and have stores mainly in Northern and Southern America. The goods can be purchased only by members who are mostly small shop owners and retailers.
The goods are sold in bulk and offers jewellery, electronics, food, clothes health and beauty items, office goods, insurance and travel services.
This B2B model may be a good bet for Wal-Mart as 100% FDI is allowed in this sector and could also complement the Bharti-Walmart deal.
Future Group has also setup a venture on similar lines called KB’s Wholesale Markets (named after owner Kishore Biyani). Pantaloon’s model has a better business proposition as it is opening these clubs mostly in rural areas and small towns, as in these areas it is infeasible to cater to the population as population is very scattered. Instead, the small shopkeepers and big families could buy directly from these huge facilities at low mark-ups.
Find this article at: http://www.labnol.org/india/corporate/sams-club-intending-to-enter-india/719/
