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 per cent jump in revenue in fiscal year 2022 while net loss went up by 49 per cent compared to the year ago. Three of Walmart entities in the country, Flipkart Internet, Myntra and Walmart India, all expanded losses by almost 50 per cent largely due to higher spending on delivering orders, advertisement and promotions, while their revenues grew by up to 45 per cent.

Ikea India’s net loss too went up by 12 per cent while revenue jumped by 77 per cent. Furniture and home décor store Ikea India is working on its plans towards 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.