In an attempt to control the losses of market share to its competitors all over the globe, US-based retail major Walmart is in talks with Sainsbury, its competitor in Britain, to sell its UK arm ASDA.

Following the clearance of antitrust regulators and the successful completion of the deal, Walmart will hold a minority stake of 42 percent, get nearly GBP3 billion in cash, and have voting rights up to 29.9 percent.

The move highlights the fresh focus of Walmart to turnaround its business all over the world and competes with its rivals including, Aldi, Lidi, and Tesco in strategically important markets.

Walmart’s Rising Focus on its International Business

Walmart’s international business accounted for below 25 percent of its overall revenue of $500.3 billion in 2018 financial year. The total sales from Walmart International reached $118.07 billion in 2018 fiscal, a slump of about 14 percent from sales of $136.5 billion in the fiscal year ended 2014.

As per Burt Flickinger, the MD of US-based retail consultant Strategic Resource Group, the retail behemoth, which operates nearly 6,300 stores all over the world, has been reacting slowly to its international business. However, Walmart has begun dedicating its resources to the areas where it has the potential to grow.

The sale of its UK subsidiary ASDA to Sainsbury marks the shift in the traditional approach of Walmart in the overseas market.

Instead of building a business by itself it is now partnering with other local players to catch up with its rivals.

Walmart’s plan to purchase a stake in Indian e-tailer Flipkart

The news of Walmart’s plan to purchase a stake in Flipkart, one of the largest e-commerce players in India was released before.

As per a fresh news report of Reuters, the Bentonville-headquartered firm is planning to acquire a majority stake in the Bengaluru-based company for $10-12 billion.

If successfully acquire the majority stake of Flipkart, the world’s largest retail chain will gain immensely from this as it does not have an online presence in India.

If Walmart succeeds at acquiring the majority stake of Flipkart, the latter can leverage the former’s brand and its huge potential in both offline and online retail channels.

The proposal puts Walmart in direct competition with American retail major Amazon, which has a successful online business model in India. Amazon seeks to consolidate its market position through the acquisition further.