US Retail Giant, Sears is planning a foray in Indian retail taking the 100% FDI route and establish cash-carry format stores. Currently, German Retailer Metro is the only foreign company adopting such a model for retailing.
Sears has the technology and the expertise in place. It has to just gain some local knowledge and it can start its store roll out. One other advantage of starting off with cash-carry large retail stores is , down the line the Government of India will lift restriction on FDI in retail, then these companies can easily convert their existing stores into hypermarkets.
French retailer, Carrefour is still undecided about its venture – whether to launch retail in tie-up with an Indian company or adopt 100% FDI route and venture into cash-carry format.