With this strategic move, Walmart can easily shift its focus towards faster-growing markets that will offer growth and also refrain from making investments to drive growth in challenging markets. Earlier, Walmart retreated from other international markets like South Korea and Germany.
The retailer might seek a similar end for its struggling Brazilian unit that has close to 460 stores. Rumors suggest that Walmart may sell its Brazilian unit to Advent International.
To run its international unit, Walmart has shown a keen interest in investing in India and China. It is close to sealing a $20 billion deal with an Indian e-commerce giant Flipkart. When the deal is closed, Walmart seeks to have three to four seats on the board that would comprise of 10 members.
Walmart also expanded its association with China’s e-commerce giant JD.com to serve the Chinese consumers with high-quality products and enhancing their shopping experience. During fiscal 2018, the company’s international business generated $33 billion and total revenue amounted to $500.3 million.