Walmart’s estimates, around 18 per cent mandatory sourcing can be achieved by its private labels.
Last week, ending months of speculation, Walmart called off its joint venture with Bharti Enterprises, terming it ‘not tenable’. In fact, Price had also said, “FDI has passed”. However, in its statement, the US retailer maintained that it will continue to work with the government and interested stakeholders to create conditions that enable FDI in multi-brand retail sector.
* Walmart says that without the
inclusion of private labels it will not be able to meet the 30% mandatory local sourcing condition
* The retailer says that around 18% mandatory sourcing can be achieved by its private labels
* Private labels are owned and sold by retailers in their stores. They add to the revenue because they have no marketing cost