Walmart asks Myntra to reduce discounts, streamline processes

NEW DELHI: To focus on profitability, US retailer and Flipkart Group parent Walmart has clamped down on processes at online fashion retailer Myntra, which includes shutting down small warehouses, bringing down the level of inventory and reducing discounts on the online platform, sources said.
“There is a strong focus on profitability and processes at Myntra and it may come at the expense of growth,” said a person familiar with the development. “For instance, there are clear instructions to reduce discounts by around 13-14% and shutter small warehouses that do not meet Walmart standards. These measures could impact sales in the short run.”
Reducing inventory will help Myntra unlock working capital. “In the fashion business, you will have to offer heftier discounts to clear old stocks and that means burning cash. Walmart does not have the appetite for such losses in fashion. They would rather do that through Flipkart Fashion than Myntra,” said a senior executive, who did not wish to be quoted.