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WalMart sacks around 50 executives in India restructuring

WalMart sacks around 50 executives in India restructuring

NEW DELHI, Jan 13: Wal-Mart, the world’s largest retailer, has fired around 50 of its India executives as part of its restructuring in the country, three sources with direct knowledge told Reuters, reports agencies. The move underscores the struggles Walmart has faced in expanding its wholesale business in India. The Bentonville, Arkansas based company currently operates 28 wholesale stores where it sells goods to small shopkeepers, and not to retail consumers. The firings mostly affected executives in the company’s real estate division because the growth in the wholesale model has not been that robust, two of the sources said. “It’s happening because focus is shifting to e-commerce rather than physical (stores),” said one source, who declined to be identified as the decision is not public. Walmart did not respond to a request for comment. Walmart has placed bold bets on India’s e-commerce sector. In 2018, it paid $16 billion to acquire a majority stake in India’s online marketplace Flipkart, in its biggest global acquisition. The second source added that while Walmart could slow down the pace of opening new wholesale stores, the focus will increasingly be on boosting sales through business-to-business and retail e-commerce. Some of the executives were sacked last week and more could be let go on Monday, two sources said. Dow edges to record, but Nasdaq winning streak ends NEW YORK, Jan 13: The Dow finished at a fresh record on Friday following a sleepy session, but the Nasdaq declined, ending a streak of 10 straight records, reports AFP. The tech-rich Nasdaq Composite Index finished down 0.2 percent at 9,006.62. But the Dow Jones Industrial Average climbed 0.1 percent to 28,645.26, its second straight record. The broad-based S&P 500 ended essentially unchanged at 3,240.02. Analysts have attributed the latest run of records to upbeat investor sentiment based on a lower risk of recession in the immediate future, a mellowing of US-China trade tensions and accommodative monetary policy. Stocks have followed a nearly unbroken line upward since early October, drifting higher much of this week amid low trading volumes in the period between the Christmas and New Year’s holidays. “It’s a market that’s gotten used to the fact that a lot of the things that were concerning last year feel better this year,” said Art Hogan, chief market strategist at National Securities. Still, some market watchers expect a pullback in the foreseeable future in light of the market’s nearly unbroken run higher. Stocks have risen to higher-than-normal valuations as a result of the run. Analysts say such a retreat would be natural due to technical trading factors, although it could also be sparked by an unexpected negative news event, such as a sharpening of US-China trade tensions. Among individual companies, The Michaels Companies surged 32.9 percent as it announced that Walmart e-commerce executive Ashley Buchanan would join the arts, crafts and framing retailer as chief executive in January.

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