Bharti Walmart Pvt. Ltd, the wholesale joint venture between the world’s largest retailer Walmart and Bharti Enterprises, is facing strong protest from the local traders specially retailers in Chhattisgarh.
The company in June this year launched Chhattisgarh’s first 'Best price modern wholesale store' spread over 53,000 square feet and stocks over 5,500 items. This was company’s seventh outlet in the country.
Just within two months of its launch, the store had come under scanner of the local traders, who had alleged that the Bharti Walmart outlet was doing retail business instead of wholesale. The traders’ body was planning a big campaign against the company.
“The concept of Bharti Walmart was to do business-to-business dealing but it had started targeting customers with setting a minimum limit of purchase to the tune of just Rs 500,” Chhattisgarh Chamber of Commerce and Industry general secretary Jitendra Barlota told Business Standard. The Best Price was set up as a wholesale store but it was allowing purchase of items valued at only Rs 500 that was violation of wholesale norms, he said, adding that the minimum limit of purchase should be increased to Rs 5000. According to Chamber general secretary, the business of small retailers had severely affected.
“I am writing a letter to the Bharti Walmart urging to increase the purchase limit and stop direct contact with the customer,” Barlota said. If the deadlock failed to end, Chamber would plan a big campaign against the company’s store as it was a matter concerned with the fate of small retailers.
The trade wing of the ruling Bharatiya Janata Party (BJP) had also opposed the entry of big multi-national companies in the retail business. Wing’s state-incharge Labhchand Bafna said they oppose the Foreign Direct Investment (FDI) in the retail business in the country. The company failed to respond to a query sent for its version on the issue.