Daijiworld Media Network- New Delhi

New Delhi, Jun 25: Global retail giant Walmart has officially confirmed that it is no longer pursuing a brick-and-mortar retail strategy in India, citing regulatory challenges and shifting consumer trends. In a candid interaction with The Times of India, Walmart President and CEO Doug McMillon, along with Walmart International President & CEO Kathryn McLay, outlined the company's evolving India strategy, with a clear emphasis on e-commerce through Flipkart.

“We’re not chasing the brick-and-mortar store business in India anymore,” said McMillon. “We’ve learned that it’s very difficult under current conditions. Our excitement is around Flipkart, and we’re fully backing its growth journey.”

Walmart, which acquired a majority stake in Flipkart in 2018 for $16 billion, continues to seek a level-playing field in India’s tightly regulated e-commerce space. Current rules prevent foreign entities like Walmart and Amazon from directly managing inventory-based retail, a restriction McMillon feels limits their full potential in serving Indian consumers.

McMillon noted that e-commerce, especially in India, holds a “really bright future,” and Flipkart’s access to over 500 million customers presents an unmatched advantage. Kathryn McLay added that Flipkart’s recent foray into quick commerce has been executed with impressive speed and efficiency. “They continue to blow our minds with their agility—delivering orders in minutes,” she said.

While acknowledging that quick commerce comes with high operational costs, McLay reaffirmed that Walmart’s priority remains customer satisfaction and market expansion before profitability. “We’re focused on growth, delighting the customer, and building market share,” she said.

Both executives highlighted the growing importance of India in Walmart’s global supply chain, especially post-COVID and amidst the global shift away from over-reliance on China. “We are buying more than just soft goods from India now—we’re sourcing food, general merchandise, and more,” McMillon noted. “We hope to see India’s manufacturing base continue to diversify.”

McLay echoed this sentiment, describing India as “a great sourcing option for the world,” adding that Walmart has spent the last five years building a more resilient supply chain.

On regulatory issues, McMillon stressed that compliance is Walmart’s top priority. “We follow the rules wherever we operate. That’s our job. But we also engage with governments to share what policies could help us serve customers better and support local economies,” he said.

He also reiterated Walmart’s preference for an inventory-based model for Flipkart, something current Indian FDI regulations do not allow for foreign players. “Managing inventory is tough—but it’s something we’re good at. Hopefully, someday, that will change,” he said.

While Amazon appears to be leading in revenue, Walmart remains optimistic about Flipkart’s long-term growth. “I’m really thankful we made the investment when we did,” said McMillon.

With its feet firmly off India’s traditional retail path, Walmart is betting big on technology, logistics, and consumer convenience—redefining retail on digital terms in one of the world’s most promising markets.