The global stakes for both Amazon and Walmart are high. "Flipkart will diversify its inventory to attract more Indian consumer segments that still haven't started shopping online", commented Lee. Steuart Walton is a director of Walmart and Rapha Racing, a cycling apparel business, and is active in the governance and operations of many of his family's enterprises.
Sharma expects online grocery to be the fastest growing segment in the e-retail space, growing at a 65-70 per cent compounded average growth rate (CAGR) to touch $100-billion in revenues by fiscal 2020.
In a note released before the Walmart-Flipkart deal was confirmed, Forrester's senior forecast analyst, Satish Meena, said the acquisition would make "the best investment option" for the US supermarket chain and boost Flipkart's competitive edge.
The deal, reportedly worth around $15 billion (roughly Rs. 1 lakh crores), is expected to be announced officially later Wednesday, with Walmart CEO Doug McMillon in Bengaluru, where Flipkart is headquartered.
Now, with Google on their side, and Flipkart in their pocket, Walmart can trigger a new wave of discounts and offers never seen before in the Indian e-commerce sector. Sources tell the publication that Walmart and other investors see better stability under the leadership of Binny and Kalyan.
Filip Forsberg scores attractive between the legs goal
And if we restrict it just to recent years, he looks much the same in battling back from a bad start. "Nothing's going to change". You look at our lineup from our goaltender out, everybody sacrificed their bodies and did what they had to do.
However, Walmart is said to have made the investment despite the near-term revenue challenges as the "long-term opportunity in a country with a population of 1.3 billion was too large to ignore".
"This investment is of huge importance for India and will help fuel our ambition to deepen our connection with buyers and sellers and to create the next wave of retail in India", Flipkart co-founder and CEO Binny Bansal said in an announcement. "This investment is of vast importance for India and will help fuel our ambition to deepen our connection with buyers and sellers and to create the next wave of retail in India".
S&P lowered Walmart's outlook to negative from stable, citing increasing leverage and risks stemming from the company's spending to expand online and globally as it continues its share buyback program. This could lower its stake although Walmart plans to retain majority control.
Tencent Holdings Ltd, Tiger Global Management and Microsoft Corp will also continue to remain shareholders in Flipkart, Walmart said without divulging their stake. In key markets like the US, Walmart has show a particular capacity for maximizing this channel.
Forrester's Satish Meena, senior forecast analyst said the deal was about more than just cash but ties into offline opportunity and new categories.
While the deal gave Walmart access to India, which is the largest market outside of the United States and China, its stock could continue to see pressure from investors post the deal.