The chief executive of retail giant Walmart (WMT) has set out his vision of global retail following an inaugural trip to India.
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Digital and Sourcing
John Furner, who took up the leadership reins earlier this year, said India’s mix of entrepreneurship, digital innovation, sourcing strength and fast-growing small businesses was creating a retail ecosystem that could shape Walmart’s global future.
“India is already one of our most important sourcing markets, with over $40 billion sourced across key categories,” Furner said speaking at the India Growth Summit. “When we look ahead, we see India not just as a growth market, but as a model for the future of retail.”
Walmart has a strong presence in India, the world’s most populous nation with around 1.5 billion people. This is mainly in the form of companies such as Flipkart, PhonePe, and Myntra.
Furner said Walmart’s ethos of helping people “save money and live better” is increasingly being realized in India through this line-up of businesses operating across commerce, payments, fashion and supply chains.
“Flipkart is enabling eCommerce access across the country. PhonePe is driving financial inclusion at scale. Myntra is leading in fashion and digital engagement,” he added.
International Growth Ambitions
Indeed, according to Fortune India, Walmart said it has supported more than 115,000 entrepreneurs through its Walmart Vriddhi program, which provides digital training, mentorship and access to Walmart and Flipkart marketplaces.
However, analysts expect it to target an around $40 billion valuation. Walmart, which owns roughly 75% of Flipkart, is likely to retain majority control even post-IPO. That is because it wants to continue growing its international revenues – see above.
Is WMT a Good Stock to Buy Now?
On TipRanks, WMT has a Strong Buy consensus based on 28 Buy and 2 Hold ratings. Its highest price target is $150. WMT stock’s consensus price target is $139.19, implying a 6.99% upside.
