Walmart Stores has opened one of its first global fulfilment centre or ‘dark store’ in India, in an effort to speed up operations in the country.
The 45,000 square feet centre at Bhiwandi near Mumbai will cater to the business needs of resellers, kirana stores, office and institutions through online orders mostly stock packaged consumer products and home supplies.
“Metro cities are great markets for consumers but the availability of large real estate at a reasonable cost is a challenge,” said Krish Iyer, CEO at Walmart India to The Economic Times. Nearly half its sales are generated out of its 20-odd big-box formats through online and sales staff ordering, he added.
Walmart launched its online platform in India for members of Best Price Modern Wholesale stores three years ago but that was restricted only to cities with the stores.
The company will now start an online platform without a physical store.
After signing the memorandum of understanding with the Maharashtra government in September, the US-based retail chain giant had announced its plans to launch its Cash and Carry business in Mumbai to enable small businesses.
Members could shop from their premises in four ways - by browsing and placing orders through its website www.bestprice.in, through Best Price mobile app, by dialling the Call Centre and through various Kirana Relationship Managers, a statement explained.
"..this will enable kiranas, resellers and other businesses in Mumbai and neighbouring areas to get access to a wide and exciting assortment of merchandise relevant to them without stepping out of their stores," Iyer told PTI.
With this, Walmart India brings a wide range of quality merchandise, local assortment, unique shopping options, state-of-the-art door-step delivery and convenient payment solutions to its members in Mumbai, reported PTI.
“The idea (of starting an online platform without a physical store) was conceived nearly a year ago and we first piloted it in Lucknow. Last-mile delivery and the time taken are a challenge but we have to manage that. We have promised delivery within 24 hours to our members,” said Iyer to ET.
Global rival Amazon opened its largest fulfilment centre in India on the outskirts of Hyderabad over a month ago, raising the overall number of centres and warehouses to about 45.
Walmart’s store expansion, which was put on hold for a few years, will begin aggressively, said the company. “We will open 5-7 stores next year and add another 8-10 in the subsequent year,” said Iyer according to an ET report.
The Rs 6,800 crore market has been growing at 13%, faster than modern trade.