South Korean conglomerate Lotte, which operates department stores and fast food chains, has quit its plans to open shops in India.

Lotte planned to open cash and carry stores in India aiming to follow the footsteps of global retailers like Carrefour, Metro and Walmart. It formed a business development team to identify market opportunities in Indian cities such as Pune and Mumbai.

But after four months of assessment, the team recommended aborting the plan after concluding the cash and carry format was not viable.

Lotte says India’s complex business developments, high property prices, uncertainties over FDI and clamorous political opposition were deterrents to the viability of setting up stores in the country.

A spokeswoman from Lotte said the company will still keep a watching brief on India, but for the meantime, it will focus its businesses on other emerging markets including China, Indonesia, Vietnam and Russia.

GB