Three years ago, Wal-Mart aspires to become India's largest retailer in 2015. It is difficult now expansion in India, only opened 50 stores last year, much lower than the 22 planned, because the local operating environment is extraordinarily complex.
Sources familiar with Wal-Mart planning this year, the company plans to open eight stores in India. Industry sources say that Wal-Mart expansion difficult part because India's commercial real estate development and store operations processes a multitude of things, but one of the biggest reasons is the compliance blow.
Wal-Mart in November last year, disclosed the investigation in India, Mexico and other countries is a violation of the U.S. Overseas Anti-Corruption Act (FCPA). Since the internal investigation began, Wal-Mart said that to strengthen the efforts of the partners and employees in accordance with the laws of the United States and India, and thus slow down the pace of expansion.
International business to promote the growth of the overall performance of Wal-Mart's sales increased 5% to $ 466 billion last year, the international business increased by 7.4% to $ 135 billion.
For the modest goal of eight stores in India this year, Wal-Mart's current progress is lagging far behind, and finally a newly opened store in October last year. Wal-Mart to enter India in 2009, has opened 20. Within two years, Wal-Mart plans to run a number of supermarkets in September last year, the Government of India after the liberalization of foreign investment of the supermarket.
Even for the locals who opened in India, operates retail stores are also very complicated, you need to get dozens of licenses and authorizations from various institutions on to the municipal government, they usually have to pay bribes in order to promote the project.
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