Reuters claims that India has a $350 billion retail industry and that it will double by 2015. In a move to gain a foot-hold in that market, the Wal-Mart (NYSE:WMT) will announce a joint venture with Indian retailer Bharti Enterprises today.
The new partnership will start with eight stores. These first of these will be a cash-and-carry operation.
The deal may seem like a small start, but Wal-Mart needs to continue to aggressively expand its overseas operations. With same-store sales in the US running at 1% to 2%, markets like China and Mexico have become the key to future growth.
And Wal-Mart has had some humiliating setbacks. It has moved out of Germany and South Korea because of losses in its operations in those countries. The world's largest retailer is also having trouble making money in Japan.
That leave fairly few really large markets. So, India means the world to Wal-Mart.
Douglas A. McIntyre is a partner at 247wallst.com.
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