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FDI In Retail Part IV

Those of you think that big retail make big profit please think again. 
Below is a link to the latest available financial data for WalMart the gold standard in any currency for efficiency of retail operations.
Let me ask you to make a guess how much net profit margin you think WalMart makes?
40% ?
5% ?
Well even if you choose the last no at 5% you will still be wrong by a big margin as the Big Daddy of retail makes a margin of only 3.6%.
Please check it out here:

The star of Indian organised retail Future Venture ( Big Bazaar) is actually making losses  for many years with a net margin of negative 5.12%:

WalMart is big and successful because it uses the money it has very effectively and the Receivable turnover  is a cool 88% and that is what gives them the cutting edge not obscene profit margins. Compared to this the neighborhood kiryana store makes a margin of almost 30% and is reluctant to give you a bill as he does not want to pay taxes, due to same reason he does not want to accept credit and debit cards.
I think I have made my point fairly clear, big retail is not about profit margins it is about a more efficient operations with economies of scale, investment in infrastructure and creation of jobs for the youth of this country.

To read the earlier posts in this series please click here

Thanks for reading.