Walmart rapidly improves its e-commerce business in India and builds Flipkart's largest retail warehouse

Walmart Inc. WMT has been focusing on strengthening its U.S. and international e-commerce operations as consumers increasingly prefer online shopping .

The trend has further intensified during the pandemic . According to various media reports, Walmart Inc.’s e-commerce unit in India, Flipkart, has inked a deal with renowned billionaire Gautam Adani’s company to build one of the largest retail warehouses in India.

Apparently, Adani Logistics Ltd will set up a fulfilment centre spread over 534,000 square feet in Mumbai and lease it to Flipkart.

Sources revealed that the fulfillment center may be operational in the third quarter of 2022. We believe that the warehouse may benefit Flipkart . Flipkart has been committed to providing customers with access to a variety of products from sellers across the country. The establishment of a new distribution warehouse will expand Flipkart 's business volume and order volume, and will also provide Indian consumers with richer products and complete services.

It would also be very beneficial to Walmart and give it an edge in the growing competition with e-commerce giant Amazon .

Walmart acquired a major stake in Flipkart back in 2018 to strengthen its presence in the fast-growing Indian e-commerce market. Of course, the $16 billion Flipkart deal has worked well for Walmart, as the addition of Flipkart has been driving Walmart's e-commerce sales in international markets.

Moreover , in the fourth quarter of fiscal year 2021, the net sales of Walmart's international division increased by 5.5% to US$34.9 billion. Among them, Flipkart, its Mexican branch and its Canadian branch under Walmart performed the best .

The growth in international business is of course inseparable from the efforts of Flipkart , its strong customer base, multiple customer-friendly payment options and businesses like Myntra are major driving forces.

In recent years, Walmart has been increasing its investment in e-commerce, not only in the US market, but also in the international market. The strong growth of Flipkart in India and the rapid development of its business in India have confirmed the correctness of Walmart's move.

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