Flipkart is planning to open grocery stores across the country, the Times of India reported. The Walmart-owned e-commerce giant, will look to tap into the space that is available in “food retail” business where 100 percent foreign investment is allowed, unlike the general retail sector, the report said.

“Globally, around 50-60 percent of Walmart’s sales come from food. The strategy of opening offline stores falls into Walmart’s overall scheme of things,” a source was quoted as saying by the report.

Walmart, which is allowed currently only to operate a business-to-business (B2B) wholesale segment in India due to FDI norms, could use the option to enter the segment in the country, the report said.

In addition, Flipkart's entry into a new segment could also help Walmart’s cash-and-carry business, where revenue growth has not been satisfactory, the report added. Setting up of stores will allow Flipkart to ‘take advantage of Walmart’s expertise’ in the segment, a source told the paper.

The development comes at a time when Amazon has committed an investment of $500 million in food retail segment in the country through its retail arm Amazon Retail India.