Flipkart to set up brick and mortar stores

India's largest e-tailer Flipkart is planning to set up brick-and-mortar stores to sell grocery in India. The move will allow owner Walmart to take advantage of laws permitting 100% FDI in food retail, while helping Flipkart leverage its parent's expertise in the area: Walmart generates 50-60% of its global revenue from food items. Flipkart has also been expanding its online grocery store Supermart. The e-tailer's biggest rival, Amazon, has committed 500 million dollar to food retail in India.

With Amazon committing a 500 Million dollar in food retail in India, Flipkart is aggressively expanding its grocery division-currently serving in 5 major cities in the country. The reason would strongly have to do with its new mentor-cum-investor Walmart in the picture. With a 100% FDI, it won't be long before we see Flipkart entering the offline retail stores segment, similar to how Amazon is looking to shift to brick and mortar establishments in the USA.

The fight gets tougher with 2 major players Amazon and Flipkart ploughing money into India and Reliance entering the online retail business. It's going to be tough competition!