Flipkart ups physical retail presence to take on rivals, boost business

Walmart-owned Flipkart may absorb Walmart India’s wholesale business, which includes 28 Best Price stores and three warehouse properties, as the two groups look at consolidating operating units and driving synergies, said people in the know. If the amalgamation goes through, Flipkart will acquire a sizable physical retail footprint, which will likely complement its core e-commerce business.

Flipkart, which operates Myntra marketplace and PhonePe payments app, will use Walmart India’s centres as stocking and fulfilment units for fast-moving items, such as groceries, consumer packaged foods (CPGs), and kitchen inputs, the sources said. This will enable faster hyperlocal deliveries of these items.

According to a media report, Flipkart may also use these units to strengthen its own business-to-business (B2B) sourcing business, which will now be focused on selling inventory to kirana stores. A spokesperson from Flipkart declined to comment on the matter.