31 October 2022, Mumbai:
Walmart and Ikea face losses in India despite a surge in sales.
Walmart India – which owns and operates 28 cash and carry wholesale stores – posted a six percent jump in revenue in the fiscal year 2022 while the net loss went up by 49 per cent compared to the year ago.
Three of Walmart's entities in the country, Flipkart Internet, Myntra, and Walmart India, all expanded losses by almost 50 percent largely due to higher spending on delivering orders, advertisement, and promotions, while their revenues grew by up to 45 percent.
Ikea India’s net loss too went up by 12 percent while revenue jumped by 77 per cent. Furniture and home décor store Ikea India is working on its plans for positioning, growth, and profitability of the omni-channel business in India.
Nevertheless, Walmart and Ikea are currently in a market acquisition mode in India to establish a dominant position and may sacrifice profit in the short term. Also, the market environment has been tough last fiscal due to increased competition despite a bounce back post-Covid.
