October 11, 2005

Food Sourcing From India

The Times of India tells us about Wal-Mart's plan to source food there:

BANGALORE: Wal-Mart is working towards sourcing spices, basmati rice, tea and shrimps from India, the first time the global retailer will be getting into the foods segment here.

Its global rival Tesco, which was sourcing from India primarily for its UK operations, is now increasingly doing so for its stores in Central Europe, a region whose lower incomes is making lower cost sourcing imperative. The India sourcing story is fast getting bigger and broader.

This highlights an additional set of problems an analyst of Wal-Mart faces. If you're tasked with finding the share of Wal-Mart's goods sourced outside the US, you really need to specify which stores you're asking about -- stores in Japan, Germany, Mexico, China, Canada, or the US? While the answer should be close for the same format in the same country, different formats and/or different countries should see very different national sources for many goods.

Posted by Kevin at 10:50 AM