Retail Updates

Wal-Mart and Bharti in India deal

The outlets will sell fruit and vegetables and other itemsA joint venture between Wal-Mart Stores and India's Bharti Enterprises has been finalised, the pair said on Monday.
Bharti Wal-Mart Private Limited will operate wholesale cash-and-carry and supply chain operations in India.

Opening 10 to 15 outlets by 2015, it plans to employ about 5,000 people selling groceries, consumer goods, fruits and vegetables. India's retail industry is worth $300bn (£148bn) a year and has attracted the interest of international retailers. Large overseas retailers are currently barred by law at the retail level in India, but not in the wholesale market.

Tesco, France's Carrefour, and Germany's Metro are all big names who have expressed an interest in establishing operations in India.
The first Bharti Wal-Mart Private Limited cash-and-carry store is set to open by the end of 2008.

"This venture promises to bring great value to millions of farmers, artisans, small manufacturers and retailers across India," said Sunil Bharti Mittal, chairman and group CEO of Bharti Enterprises.

"We are pleased to be a partner in developing this sector which is set to become a significant engine of India's economic growth."

Retail Updates

Wal-Mart and Bharti in India deal

The outlets will sell fruit and vegetables and other itemsA joint venture between Wal-Mart Stores and India's Bharti Enterprises has been finalised, the pair said on Monday.
Bharti Wal-Mart Private Limited will operate wholesale cash-and-carry and supply chain operations in India.

Opening 10 to 15 outlets by 2015, it plans to employ about 5,000 people selling groceries, consumer goods, fruits and vegetables. India's retail industry is worth $300bn (£148bn) a year and has attracted the interest of international retailers. Large overseas retailers are currently barred by law at the retail level in India, but not in the wholesale market.

Tesco, France's Carrefour, and Germany's Metro are all big names who have expressed an interest in establishing operations in India.
The first Bharti Wal-Mart Private Limited cash-and-carry store is set to open by the end of 2008.

"This venture promises to bring great value to millions of farmers, artisans, small manufacturers and retailers across India," said Sunil Bharti Mittal, chairman and group CEO of Bharti Enterprises.

"We are pleased to be a partner in developing this sector which is set to become a significant engine of India's economic growth."

Retail Updates

Bharti in $2.5bn retail expansion

Family-run firms dominate India's retail marketIndian conglomerate Bharti Enterprises is to pump $2.5bn (£1.28bn) into expanding its retail business. Bharti, which recently tied up with US group Wal-Mart to launch Indian-based stores, said retail would be its "big focus" for the next eight years.

The group plans to open stores in all Indian cities with a population of one million or more.
More disposable income from the middle classes has boosted India's economy, though small firms dominate retailing.

Retail boom:

"After revolutionising the Indian telecom sector, retail will be the next big focus area for Bharti," said the firm.

Under its deal with Wal-Mart, Bharti will focus on running the stores while Wal-Mart will handle the supply side of the operation.
The Indian conglomerate operates in a range of areas, from commercial agriculture, insurance and software to telecoms, in which it control's the nation's leading mobile operator - Bharti Airtel.

Organised retailing represents only 3% to 5% of Indian retailers while family-run enterprises represent the vast majority of the market. Various industry estimates put Indian retail spending at $300bn each year, with the figure set to double by 2015.

Other firms have also seen the potential for retailing growth in India, such as the private company Reliance which is launching a supermarket chain called Reliance Fresh as part of its wider growth plans.

Retail Updates

General trends and information:

India yet to get foreign inflows on retail trade:

The government on Tuesday said the country is yet to receive any foreign inflow in single brand retail trade, even though 17 such proposals involving a total investment of $3.3 million have been cleared. The FDI policy for the sector, announced in February 2006, allows 51 per cent foreign investment in single brand retailing.
August 14, 2007

Source: The Economic Times

Women setting up franchisee outlets:

Call it retail’s tribute to independent women. As several leading corporates are expanding retail footprint, womenpreneurs across India are weaving success stories.
According to Franchising Association of India, the number of women setting up franchisee outlets is going up consistently. Industry experts say there are 75,000 franchisee outlets and around 10-15% are owned and managed by women. The share has increased around 20% in the past two years.

S Kumars Nationwide Ltd’s home linen brand Carmaichel House, which is reaching out to cities across the country, is also inviting women entrepreneurs to take up franchisee offers for company’s retail outlets. At present, the company operates around 22 franchisee outlets and has signed deals for 30 more outlets.

Usually in home textile retailing, the average investment is around Rs 5-6 lakh. Most of the companies also offer loans to individuals for setting up franchisee outlets. The entrepreneurs can earn around Rs 20,000-40,000 per month through these franchisee outlets.

The trend is just not limited to home textile or garment companies. Hero Honda, which recently launched Pleasure, targeting women, is encouraging women entrepreneurs to set up ‘Just 4 her’ outlets. At present, the company has 21 franchisee outlets. All of these outlets are operated and run by women. The company is encouraging women-owned franchisee outlets as well.
August 13, 2007

Source: The Economic Times

All roads lead to China:

It is ironical to say the least. Global retail giant Wal-Mart is working hard to develop India as a sourcing base and at the same time big retail in India is increasing its dependence on China.

While the growing presence of Chinese goods, typically sold by pavement shops or small stores bearing ‘China Shop’ banners, is a well-known, fact what is surprising is the extent to which big retail is dependent on China to meet its needs. A variety of products like sofa sets, beds, home decor, toys, stationary items, electronics, crockery, bought from up-market malls are now invariably made in China.

The proportion of Chinese goods is as high as 30-33% of the entire product range for some of these retailers. Home Town, Future group’s home division, sources 25-30% of its furniture products from China. Similarly, Hypercity, India’s first box format retail store, has more than three-fourths of its stationery and toys items sourced from China. One of their fastest moving segments, the electronics division, also sources about 65-70% items from China. For furniture also, it is as high as 70%. Likewise Spencer’s sources 25% of its electrical and electronics categories from China. About 50% of its general merchandise (home, work and play) category also come from China.

Newer entrants like TruMart are looking at increasing the China share from nil to about 5-7% of their total sales. They intend to import only in the general merchandise category since that would help them bring value for the customer. Similar is the case for Vishal Retail whose total imports from China include general merchandise, watches, sports items, electronics and electrical.

Vishal is a private label player and sourcing from China helps them to get quality products at competitive prices. Players like Vishal Retail, Lifestyle, TruMart and Piramyd are looking at increasing their share to at least 12-15% by 2010. Even players like Reliance Retail, which intends to change the face of Indian retail, is believed to be looking to the land of the Dragon for almost 30% of its entire footwear requirements.

While partly the reason is price, there are other factors as well such as the lack of availability of certain goods in India.
August 13, 2007

Source: The Economic Times

It’s not just hype, hypermarkets shall rule:

Brick by brick, the retail world is betting on the hypermarket to take growth beyond hoopla. That’s par for the course, if one looks at the successful retailing formats in emerging markets. Hypermarkets offer customers a destination shopping experience with everything available under one roof.

Hemant Kalbag, principal, consumer industries and retail practice at consultant AT Kearney, said: “The success in emerging markets can be replicated in India as well because organised retailing has literally caught fire.” He said real estate will be the key factor in the growth of hypermarkets. From the retailer’s perspective, the hypermarket format allows him to enjoy all the benefits of being an anchor. The occupancy costs are driven down drastically. Besides, the retailer gets to play the volume game (efficiency of scale), too.

And unlike supermarkets where one has to look at large number of stores, hypermarkets need not go into the multiples of 100 and one can still be a large successful player in the retail sector.

Highlighting the unparalleled success high-volume hypermarkets have enjoyed in Asian markets, according to A T Kearney report, local hypermarket retailers are already making their moves before the Centre further loosens foreign investment in this sector. In fact, Pantaloon Retail’s success story largely comes from its hypermarket format, Big Bazaar.

Another large retailer — Spencer’s — has recently restructured its retail business and its hypermarket format has been identified as the key driver for growth. Similarly, there are others like K Raheja Corp, which made its foray with Hypercity sometime early 2006. With plans to expand the Hypercity network in primary and secondary cities, it plans to add another 5-8 stores in this fiscal. Mukesh Ambani’s Reliance Retail, on its part, is all set to unveil its first hypermarket called Reliance Mart in Ahmedabad this week.

According to the A T Kearney 2007 Global Retail Development Index titled “Growth Opportunities for Global Retailers”, modern retail in India is just 2-3% of overall retail, but is growing at a remarkable 25% per year. It is expected to grow at a compounded annual growth rate of 40% from $8 billion to $22 billion by 2010. Overall, India’s retail sector is expected to grow from its current $350 billion to $427 billion by 2010 and $635 billion by 2015.
August 8, 2007

Source: DNA

'Retail giants pose no threat to mom and pop shops':

Notwithstanding apprehensions among small-time shopkeepers that the entry of retail giants will pose a threat to their existence, some organised retail networks here feel there is "ample space for all" in the sector.

Top officials at Subiksha, which has a network of 750 supermarkets across the country, and Spencers Daily, which has a strong presence in south India, are unanimous in their view that new entrants like Wal-Mart or Reliance Retail would not pose a threat to them or the "mom and pop shops".

Mohit Khattar, President (Marketing), Subhiksha, and Samarjit Singh Shekhawat, Vice-President (Marketing), Spencers Daily feel that in a country like India, there is plenty of space for everyone and the organised supply chains represent just a "miniscule" portion of the sector with organised retailers accounting for only three to four per cent of the total business.

Meanwhile, 'kirana merchants' feel the organised retail chains cannot make much impact on their customer base as their higher establishment charges will not let them always provide goods at cheaper rates.

A 'kirana merchant' in the neighbourhood cannot be wiped out as long as customers are conscious of prices, quality and convenience, Madras Kirana Merchants Association secretary Kailash Kothari said. Moreover, small shops have a strong presence in rural and suburban areas, he said. "Maybe, 10-15 years down the line, the bigger retailers can pose a threat to us. But we also hope to change ourselves to adapt to the new situation," he said.

Some neighbourhood shop owners, however, beg to differ."I lost several of my regular customers once a nearby supermarket started offering onions and potatoes at Rs eight per kg irrespective of the prevailing wholesale rate," said A Anandan, owner of a provision store in a residential colony in the city.

Lured by advertisements for cheap onions and potatoes, several people drop in at the supermarket and end up purchasing all they need, be it provisions or vegetables, at higher prices than neigbourhood shops, he claimed.
August 8, 2007

Source: Hindustan Times

Big Players – plans and investments:

Reliance says not seeking retail partner:

Reliance Industries has no immediate plans to involve a foreign partner in its retail venture and sees no threat from Bharti group's wholesale tie-up with Wal-Mart, a top company official said.

"We are not scared of competition. We are ahead of them. Our great challenge is to satisfy our customers. And that is the only benchmark," Raghu Pillai, president and CEO of Reliance Retail told reporters on Tuesday at the launch of a hypermarket in western India.
August 14, 2007

Source: Economic Times

Trent may help Benetton’s Sisley into India:

Europe’s famous fashion house Benetton is likely to enter into a distribution partnership for its premium fashion brand, Sisley, with Tata Group company, Trent. This marks the Indian business house’s first brush with a foreign apparel brand and its foray into high street retail. Benetton Group’s deputy chairman and son of Luciano Benetton, Alessandro Benetton, is expected to ink the deal with Trent MD Noel Tata next month.

Benetton has decided to join forces with the Tatas because its wholly-owned India subsidiary has decided to focus on the eponymous flagship brand. India is emerging as the most important market for Benetton in Asia-Pacific. Brand Benetton commands a higher, although affordable, premium here compared to other global markets.

Benetton’s India arm had test launched Sisley in the country last year but could not scale up operations as it remained focused on the flagship brand’s expansion in a fast growing economy. Besides, a partnership with the Tatas may have seemed attractive as it is a formidable name in India which has proved its mettle in apparel retailing through the Trent-managed Westside stores.

Sisley, with over 850 outlets globally, is targeted at the premium end of the apparel market. The brand was created in 1968 in Paris and entered the Benetton fold in 1974. It started developing a distinct niche identity from 1985 onwards with the famous Benetton marketing machinery working aggressively behind it even though critics argue that brand Sisley never touched the dizzying heights usually expected from the Benettons.
August 14, 2007

Source: Economic Times

Organised retailing in slums! Biyani makes it possible:

Kishore Biyani, whose Future Group changed the country's retail landscape through unconventional ways, is taking a step further by exploring possibilities of tapping the potential of urban slums.

On the heels of setting up neighbourhood new format stores named KB's Fair Price shops, the group is toying with the idea of taking retailing to the bottom of the pyramid in urban areas -- the slums.

According to sources, the group recently conducted a study on Mumbai's slum dwellers detailing out their lifestyle, earning and spending behaviour, consumption pattern and attitude toward shopping destinations and brands. With eight million out of Mumbai's 12 million population living in slums, the potential of retailing in those areas appeared very big.

When contacted, a Future Group spokesperson confirmed it had conducted a study to understand the market potential of slum areas. "However, there is no concrete plan as such on whether to enter this space or not at the moment. We were just exploring possibilities," the spokesperson said.
If it finally decides to open stores in slums, this will be yet another innovative method from Future Group which changed the rules of retailing with throwaway prices at its Big Bazaar chain of outlets.
August 12, 2007

Source: Economic Times

Spencer’s plans foray into garment retailing:

Spencer’s Retail, part of the Rs 11,500-crore RPG Group, is looking at a foray into garment retailing two quarters from now. These would be exclusive stores retailing only apparel.

Spencer’s hypermarkets are retailing ‘basic garments,’ and nearly 16 per cent of its revenues comes from these SKUs (stock keeping units) In addition to increasing garment retailing in hypermarkets, the retailer will be launching exclusive garment retail stores similar to its music and book stores.

RPG Retail currently has a presence across 40 cities with 250 Spencer’s outlets. This includes 11 hypermarkets, seven supermarkets, three Fresh, 55 Express and 125 Dailies. The Group’s other retail presence is in the area of music (Music World), books (Books and Beyond) and RPG Cellucom (mobile phone retail) with a total of 500 outlets, expected to grow to 2,000 by 2009 and 5,000 by 2011.
August 12, 2007

Source: Hindu Businessline

Wal-Mart in India:

America's Wal-Mart and India's Bharti are hoping to bring a dose of modernity to India's retailing landscape, and good for them for trying. But it's going to take a lot more than Wal-Mart's legendary supply-chain management and margin-shaving acumen to bring "everyday low prices" to Indian consumers.

This week, the two companies finalized a 50-50 joint venture to go into the business-to-business, cash-and-carry wholesaling sector. This structure evades India's strict ban on foreign department stores and supermarkets setting up shops by themselves and selling directly to consumers. Foreign direct investment in single-brand stores such as Nike shops or Samsung outlets has been allowed only since 2006, and even then foreign ownership is limited to 51%.

Wal-Mart hopes that entering India now, even if it can't open retail stores, will give it a leg up if the country's market opens further. Meantime, Bharti is planning to open its own Wal-Mart-style chain with technical expertise from its American partner. To the extent Wal-Mart's new wholesale outlets reduce costs for retailers, Indian consumers may see at least some indirect benefit.
August 11, 2007

Source: The Wall Street Journal

Trumart expanding in-store label:

Pyramid Retail group’s supermarket chain Trumart is to aggressively expand its in-store label. “It is more profitable for a supermarket to sell its own private label products, as it requires zero marketing cost and brings greater margins,” Mr Upamanyu Bhattacharya, Chief Executive Officer, Trumart, said.

The store will launch private labels in household cleaners, oil and grocery by the end of this year, following the success of Uttam, the recently launched in-store label in the grocery segment. “We will sell products with a low brand loyalty like sauces, jams, jellies and a range of FMCG items,” he said. “The prices of products under the label will be competitive or lower than that of other brands,” he added.The supermarket chain is looking to make its presence felt in tier-II cities. It currently has 29 stores in Mumbai, Pune, Jaipur, Nagpur, Ahmedabad and is to enter Madhya Pradesh next month. It has plans to take the number of stores to 90 by the year-end, preferring to set shops in residential and main street areas. The store is present in malls such as Raghuleela in Mumbai, Eternity in Nagpur and Arya Square in Jaipur and is open to entering other malls, depending on the real estate costs. Predominant in western India, the store will enter tier-II cities in South India in the next phase of expansion.
August 10, 2007

Source: Hindu Businessline

Rahejas to invest Rs 1,500 cr in hypermarkets:

The K Raheja group has lined up an investment of around Rs 1,500 crore for setting up 68 hypermarket stores named Hypercity and 250 convenient stores christened Expresscity across the country in five years.

Apart from Hypercity and Expresscity hypermarkets, The group will be introducing a third format which will cater exclusively to hi-end customers. The first such store of 10,000 sq ft, which is yet to be named, would come up in Mumbai by May 2008. It would ideally be a gourmet store housing luxury food items and select grocery items.
The Hypercity offers its customers valued-added services like consumer finance, ATM facility, telecom services, pharmacy, bakery and restaurants etc under one roof while convenient stores, Expresscity, offer daily-use products such as groceries, dairy products, bakery items and meals.

The group is eyeing tier II and tier III cities as well for its rapid expansion plans. Terming Indian market as vast and diverse, Mr Livermore, CEO of Hypercity said that the Indian retail space can easily accommodate retail giants as well as around 12 million kirana stores across the country. There’s opportunity for everyone.
August 9, 2007

Source: Economic Times

Metro unfazed by entry:

German retail giant Metro AG appears unperturbed over the entry of the world’s largest retailer, Wal-Mart, into India’s wholesale cash & carry business through a joint venture with Bharti Enterprises. The company feels that it has the first mover advantage and is now gearing up to face the competition by consolidating its presence through rapid expansion.

The company, which entered the Indian market five years ago with its wholly owned subsidiary, Metro Cash & Carry India, thinks that its model has worked well in India and there is no need for a change in its business model.

Metro is at present busy setting up its fourth and fifth distribution centres in Kolkata and Mumbai. Its Mumbai centre is being set up at Neptune’s Magnet Mall by the end of 2007. At present, Metro operates two distribution centres in Bangalore and one in Hyderabad. It will open its fourth wholesale store in Kolkata this year.

Metro’s distribution centre in Mumbai will be spread over 100,000 sq ft and create more than 400 jobs. Its Kolkata centre launch has been delayed due to a legal dispute over land acquisition. Further, it aims to open distribution centres in all major cities having over 1 million population.

Metro, till now, invested over Rs 250 crore to set up three distribution centres in Bangalore and Hyderabad. Its Mumbai and Kolkata centres will see a combined investment of over Rs 150 crore.

In India, Metro serves three types of customers - retailers, hotels and caterers and other businesses including IT companies, offices. Metro sells around 8,000 type of food products and 10,000 non-food products. About 90 per cent of the goods offered originate from local producers and suppliers. In the last four years of its presence in India (till March), Metro has acquired 3.13 lakh members. Its products are sold only to its registered members.

Metro plans to invest EURO 300 million (about Rs 1,800 crore) to expand its operations in India over the next three to five years.
August 8, 2007

Source: Business Standard

International:

Steve & Barry's likely to set up shop in India:

The entry of the world’s largest retailer, Wal-Mart, into India seems to be paving the way for others to follow suit. Steve & Barry’s, one of the fastest-growing retail chains in the US, is planning to set up shops in India and China.
Sources said Steve & Barry’s had started putting in place a blueprint for the foray, with an initial investment of Rs 500 crore, which is likely to be scaled up to Rs 2,000 crore.

Avirat Sonpal, managing director, Unisource Group, and vice-president, Steve & Barry’s, in an email reply said: “Our feasibility studies are under way, but we have no firm plans to enter India and China yet.’’ The company is looking at forming a core team that will focus on India and China. The first store is expected to be operational by late 2008 or early 2009.

Started by childhood friends Steve and Barry to sell screen-printing T-shirts for $1 at flea markets across Long Island and New Jersey, Steve & Barry’s currently has about 220 stores and is looking at adding 70 more this financial year. Typically, a Steve & Barry’s store ranges from 50,000 to 100,000 sq ft. Perceived as a value-for-money brand, the prime focus of this brand is the youth.
August 9, 2007

Source: Business Standard

Regional News:

Reliance Fresh to launch in Uttar Pradesh, Uttarakhand:

Hoping to usher in a socio-economic revolution in Uttar Pradesh and Uttarakhand, Mukesh Ambani-led Reliance Industries Ltd (RIL) is all set to create at least 500,000 jobs through its jumbo Rs 80 billion investment in its agri-food retail network to be launched Tuesday in the two north Indian states.

Reliance Fresh has already opened its outlets in New Delhi and Hyderabad. RIL says it will invest Rs 250 billion over the next five years in the retail business across the country and is eyeing 4,000 outlets in different cities.

The latest venture is regarded as the largest single operation by any industrial house in the state. The first phase to be launched Aug 14 will include Lucknow, Kanpur, Varanasi, Allahabad, Bareilly, Meerut and Agra in Uttar Pradesh and Dehradun in Uttarakhand.
August 12, 2007

Source: Economic Times

Odyssey’s new store at Hyderabad:

Leisure store chain Odyssey will be expanding its presence by adding three more stores over the next 8 months.

“We have aggressive expansion plan for Hyderabad. By March 2008, we will launch three more large format stores in the city taking our total retail space to over 1.2 lakh sq ft,” Mr T.S. Ashwin, Managing Director, Odyssey, said at the launch of its fourth store in the city at Vikramapuri here on Sunday.

The newly-opened store had a ‘Candy Corner&# 8217; with candies from all over the world. Mr Ramesh Prasad, Managing Director, Prasad Group of companies, inaugurated the store, according to a release.
August 12, 2007

Source: Hindu Businessline

Sector Specific:

Food & Grocery:

Nature’s Basket relaunch:

Godrej Agrovet is re-launching its Nature’s Basket retail outlets as ‘authentic world food’ stores.

It has launched an upgraded format of its existing stores in Mumbai with a new look and feel, with an added section for international gourmet foods ranging from wines to cheeses. The company has roped in design house Fitch and Madison Retail to upgrade its existing stores across the city.

While the old Nature’s Basket stores would continue to exist, the company is launching new upgraded stores in Mumbai with the new positioning. Targeting the affluent section of society, Nature’s Basket is expected to cater to families exposed to international lifestyles, including diplomats.

The company expects to launch 75 to 100 stores within the next two years across the country. At present, Nature’s Basket has 8 operational stores in Mumbai.
August 9, 2007

Source: Hindu Businessline

Support industries:

Brothers in arms:

For small and mid-sized manufacturing units in the country, it’s time to make hay, till the retail sun shines. Growth in the retail sector is not just about boom time with a handful of blue-chip retail firms.

Almost all proposed and existing retail and cash and carry ventures in India, including those by Reliance Industries, Bharti–Wal-Mart, the Aditya Birla Group and Kishore Biyani’s Future group, are planning to make significant investments in the businesses of their respective vendors and suppliers.

The idea is simple: To ensure that the vendor is able to scale up his operations to match the requirements of the retailer. “It’s not just about investing in the retailer. This obviously is an option we may exercise as per our needs. In fact, we are looking at a model where we will also extend our technical expertise and know-how to our vendors,” says Wal-Mart’s India head Raj Jain. For the world’s biggest retailer, this is a global policy.

Meanwhile, Swedish home furnishings major Ikea has made a virtue of working closely with its 1,300 suppliers to reduce costs on its 9,500 products. This model is critical for the minimalist low-cost and high-volume business model that the company works on. Ikea has a presence in the India, along with Pakistan and Bangladesh, from where it has been working with about 90 suppliers, which it’s looking to expand further.

Homegrown retail major Kishore Biyani has not only mastered the art of involving vendors, but has gone a step ahead. Clearly understanding that real estate will also be a major opportunity, he had floated a realty fund, which partners with vendors in this space.
August 13, 2007

Source: Economic Times

League One launches in-shop ads thru LCD screens:

While everybody is focussing on the entry of big retail shops and innovating ways of marketing, a Delhi-based marketing services company is quietly revamping the way traditional retail outlets advertise. League One has launched in-shop advertising of brands through 32 to 40 inch LCD screens placed in various retail outlets. Each digital video screen is attached to a central system by broadband connection. Every product gets a display slot of one minute, with 10 to 12 hours of display time per terminal. Also, specific time slot for training videos meant for store staff in resource training is provided.

Envisaging the country’s retail sector revenue to go up to Rs 12,00,000 crore, the company is targeting telecom, lifestyle, pharmaceuticals, IT, modern departmental stores and select retail chains to set up its display screens.

The marketing concept is a hit in China with the presence of over two million display screens, while it is still at a dormant stage in India, with only a few big shopping malls employing the concept for advertising, he added.
August 9, 2007

Source: Hindu Businessline

Distributors plan dharna against FMCG ‘practices’:

The is looking at launching an agitation against what it terms the “discriminatory practices” of FMCG companies. A few weeks back, the Association wrote a letter to over 60 FMCG companies protesting against alleged moves by the companies to bypass distributors and sell products directly to major retail chains.

The letter also opposed the special rates and credit terms that FMCG companies offer large retail chains. Mr P. Venkitarama Iyer, President of AKDA, told Business Line that the organisation was not against retail chains. “What we are against is the undue terms and favours that the companies offer large retailers.”

So far, there has been no response to the letter from the managements of any of the companies, which is why the AKDA has now decided to launch a protest against the companies, he added. Later this week, the association will hold dharnas outside the Kochi offices of some of the companies. The organisation will also launch a campaign in Kerala to create awareness about the various “discriminatory practices” followed by the companies and their implications.
August 8, 2007

Source: Hindu Businessline

Retail Updates

General Plans and Information:

1. Cash and Carry format facing the brunt of the protestsThe retail battle has shifted to the cash and carry format, as anti-FDI organizations are protesting that international retail chains are using the cash and carry route to enter the retail sector of India and are circumventing the rules. The campaign has been organized by the Federation of Association of Maharashtra (FAM), Acorn-India FDI Watch campaign and the Confederation of All India Traders (CAIT) and has already got support from several leaders in the government such as Priya Ranjan Das Mushi and Meira Kumar.

The cash and carry format was opened for 100% foreign investment in 2000, when there had been a lot of interest shown in the Indian consumer. Metro of Germany was the first international company to receive permission to enter the country on this format in 2003, followed by Shoprite a South African chain in 2006.

Wednesday, May 02, 2007

Source: The Economic Times

2. One million people required in organized retailThe Retailers Association of India (RAI) said that for the organized retail sector to grow, it needs one million people in the next ten years. The current size of the retail sector is Rs. 9300 billion, of which the organized retail sector accounts for only Rs. 350 billion. The bulk of the retail sector consists of fragmented shops, owned by small independent owners who manage the shops themselves. Gibson Vedamani, CEO of RAI, said that the retail sector would require professional across all levels.

Wednesday, May 02, 2007

Source: The Economic Times

3. Wal-Mart: Small retailers are here to stayWal-Mart is reiterating that the company’s plans to enter India are in compliance with the current FDI regulations, and that the company will only be conducting business via the cash-and-carry format, as required by the law. According to Raj Jain, president of emerging markets for Wal-Mart, “We are not doing retail in India because that’s not permitted by law. We are planning to enter into the cash-and-carry business. We have spoken to planners and influencers and they have all said that what Wal-Mart was planning in India was good.”

The company will be hiring over 1,000 people for its cash-and-carry format in the next 2-3 years. There will be 5-10 stores opening in the next 2-3 years under a new name that will be announced in the coming weeks. This venture will be owned equally with Bharti Enterprises.

Its second venture will be 100% owned by Wal-Mart and will pertain to vendor management and providing support and inputs to vendors, to raise their standards up to the international level. Wal-Mart will also assist Bharti in setting up the infrastructure for distribution and logistics for the cash-and-carry stores.

Thursday, May 03, 2007

Source: The Economic Times

4. Retail heats up electionsThe heat on the retail sector is being stated as the reason for the loss of the Congress party in Delhi. Local traders and retailers had banded together to oppose the Congress because of their anti-sealing drive. The entry of Wal-Mart has further antagonized the local retailers and the Congress is wary of raising any issue related to retail ahead of the general elections.

Bharti’s tie up with Wal-Mart has kicked off lots of protests and although the company is permitted to use the US retail giant’s name on its retail format, the message from the government is to avoid using the Wal-Mart name, so that there is less opposition from other parties as well as traders.

Thursday, May 03, 2007

Source: The Economic Times

5. Local stores get proactive to compete with the big guns of retailLocal stores have started offering competitive rates to compete with the organized retailers. Where at one time, no kirana store sold a product for less than the Maximum Retail Price (MRP), now they offer lots of schemes and discount plans just as the larger retailers do. Some small retailers are also aligning themselves with certain companies such as Hindustan Lever, Proctor & Gamble to become preferred suppliers for them.

Due to stiff competition, kirana stores are finally waking up to become competitive and try to attract consumers. While earlier they had a captive audience, now consumers have so many choices, that unless local stores offer them some competitive advantage, they will get sidelined. Saturday.

May 05, 2007

Source: The Economic Times

Big players - plans and investments:

1. Shoppers’ Stop nets Rs. 262 million profit in Q4Shoppers’ Stop reported a net profit of Rs. 262 million for the fourth quarter, a slight decrease from its figure of Rs. 271 million for the corresponding quarter last year. BS Nagesh, Shoppers’ Stop managing director said that, "The results are not comparable as the company re-estimated the useful life of certain classes of assets, resulting in higher depreciation charge by Rs. 10.11 crore (Rs. 101.1 million) during the quarter."

Monday, April 30, 2007

Source: The Economic Times

2. Pantaloon plans to open KB’s Wholesale MarketsPantaloon Retail will be opening KB’s Wholesale Markets in the rural markets, to sell a range of items, including fresh fruits and vegetables. According to Arvind Chaudhary, CEO Foods for Pantaloon Retail, "There are bottlenecks in the supply chain in hinterland which makes transportation of fresh fruits and vegetables expensive." The stores are to be launched by the end of the current financial year. The first of these wholesale markets will come up in Burdwan in West Bengal and Mathura in Uttar Pradesh.

Monday, April 30, 2007

Source: The Economic Times

3. Birla’s retail venture to start in JuneAditya Birla Retail will be formally launching its Rs. 400 billion retail venture in June, after having finalized its key people. The first store is to be opened in Pune in June. The company will be focusing only on select formats of supermarkets, hypermarkets and apparel. The company had also purchased Trinethra for Rs. 1.5 billion to get a head start on its food and grocery business.

At the helm is Russell Berman who is the head of operations and has worked with Carrefour, Chinese retail chain Lian Hua, and French retail chain Auchan. Another high profile joinee is Peter Denby, who was earlier with Sainsbury’s and will be looking after the supermarket division of the company. Juzar Mastan will look after the supply chain and logistics division. Sumant Sinha, the COO of the AV Birla Group and the CEO-designate will be the overall head of the company.

Tuesday, May 01, 2007

Source: The Economic Times

4. Wal-Mart, Bharti tie up to be formalized in two weeksThe much-anticipated deal between Wal-Mart and Bharti is to be finalized in the next two weeks. The first cash-and-carry store will be opened by the middle of 2008. According to Raj Jain, President of emerging markets for Wal-Mart, "We are in negotiations with Bharti and close to signing an agreement... we will announce details of the joint venture in a couple of weeks."

Wednesday, May 02, 2007

Source: The Economic Times

5. Wal-Mart to focus on low pricesLow prices are Wal-Mart’s forte and the company will stick to it for operations in India as well. For its 50:50 JV with Bharti Enterprises, the company will be offering 25% lower prices than other wholesalers. The formal agreement is to be signed between the two companies and their first store will open in middle of 2008 and will eventually expand to stores in 75 cities over the next 5-7 years.
According to Raj Jain, president of emerging markets for Wal-Mart, the company will reduce costs by managing supply chain efficiencies and localizing operations, with as much as 50% of products being sourced by local sources and 40% being sourced from under 100 kms away.
Wal-Mart is also keen on partnering with real estate developers to house wholesale stores. Reportedly the company has found real estate prices in India a challenge, the low cost of labor and operating margins are a plus.

Thursday, May 03, 2007

Source: Reuters, Business Standard

6. Birla Retail likely to drop Trinethra brand nameAditya Birla Retail will be opening stores by the end of the year and is likely to rename the Trinethra stores that it purchased earlier this year, so that all of its stores have a cohesive branding. Trinethra has been using its name in Andhra Pradesh and Tamil Nadu and the Fabmall brand name in Kerala and Karnataka. The new brand name is being used for Trinethra, so that consumers will associate it with the value and quality of the Birla name.

Thursday, May 03, 2007

Source: Business Standard

7. Reliance keen on taking over CWC warehousesReliance Industries is keen on using the Central Warehousing Corporation warehouses that are owned by the government for its retail venture. The company has already signed a deal to lease 2 million sq t of space from CWC and wants another 2 million sq ft of space.

Friday, May 04, 2007

Source: The Economic Times

8. Wal-Mart to get fee from Bharti Wal-Mart will be earning a liscencee fee for using the Wal-Mart name from Bharti. According to the Economic Times, Bharti is likely to pay as much as 2% of its revenues as wholesale trading margin to Wal-Mart, along with a royalty of 2% as well. According to Raj Jain, CEO of emerging markets for Wal-Mart, “Bharti is likely to source technology and know-how from Wal-Mart for its front-end operations and pay royalty for them, apart from sourcing goods from the cash & carry joint venture.”

Friday, May 04, 2007

Source: The Economic Times

9. Wal-Mart attracts small women owned businesses for development ventureThe US retail giant is planning to initiate a supplier development program in India, by launching a private equity fund aimed at small businesses and women-owned ventures. While the size of the fund has yet to be finalized, sources suggest that it will follow the company’s global strategy. Beth Keck, senor director of international corporate affairs, said that, “These programmes are targeted at women, small farmers and other groups that may not have ready access to organised retailers and these initiatives have been very important in bringing local products into our stores.”

Saturday, May 05, 2007

Source: The Economic Times

International:

1. Starbucks applies again for permission to come to IndiaStarbucks has applied to the Foreign Investment Promotion Board (FIPB) again so that it may open stores in India. Its earlier application was rejected by FIPB due to “lack of clarity on the foreign shareholding structure”. A spokesperson for Starbucks said "After working closely with the Ministry of Commerce and Industry to better understand the existing foreign investment regulations, Starbucks submitted a revised application on April 13 to operate single-brand retail stores in India with a restructured entity."

The company had previously applied as a joint venture with Starbucks holding 51% stake, while the remaining 49% was to be held by the Future Group and Starbucks’ Indonesian venture’s franchise owner. Starbucks is planning to open 100 outlets by early next year, in cities such as Delhi and Mumbai.

Tuesday, May 02, 2007

Source: The Economic Times

2. Ikea keen on opening in IndiaThe world’s largest furniture retailer, Ikea has established an office in Gurgaon for market research and is holding talks with domestic companies to open stores in India. Sources say that the company will be keen to open in India in 2009, although the company has itself not confirmed anything. On their India plans, Ikea’s group president and CEO Anders Dahlvig said, “We will be there eventually, I’m sure. It is a question of how and when. I think it will mostly depend on things like legislation and infrastructure development.” Tuesday, May 01, 2007

Source: The Economic Times

3. Seiko looks for JV partnerJapanese watch company Seiko is looking for a joint venture partner to tie up with using the single brand format. The company is still deciding how to launch its own operations in India, but has planned to open in the top 8-10 cities and is aiming for a “double-digit” share of the watch market in India by 2010.

Tuesday, May 01, 2007

Source: The Economic Times

4. Pantaloons and Etam form agreementPantaloon Retail and Etam, a leading France based retailer of lingerie, have tied up in a 50:50 partnership to open stores. The products will be sold under the ETAM Future Fashion Pvt. Ltd brand. The French company will be opening 40 stores in 20 cities with an investment of Rs. 900 million. At the press conference announcing the joint venture, Elisabeth Cunin, CEO of Etam Lingerie said that the company has “aggressive expansions plans” for India.

Friday, May 04, 2007

Source: The Economic Times

Regional Trends:

1. RPG makes retail plans for OrissaThe RPG Group is focusing on Orissa for its retail expansion and will be investing Rs. 2 billion in the state to set up retail chains in the next 1-2 years. The company is planning to open 25-30 stores in the state, including supermarkets, hypermarkets and convenience stores.

Thursday, May 03, 2007

Source: Business Standard

Support Industries:
1. Pantaloon and Yash Raj Films tie up for merchandisingPantaloon Retail and Yash Raj Films have tied up to promote the film “Ta Ra Rum Pum”, with Pantaloon having created a special merchandise theme in several categories, including apparel, accessories, toys, stationery etc. This special merchandise will be available in all if its stores till May 15th.

Tuesday, May 01, 2007

Source: The Economic Times

HR News:

1. Retail boom translates to increased retail courses in business schoolsAs the number of shops and malls increase, the need for talented manpower is rising, leading to business schools increasing their offerings on retail. The Indian Institute of Social Welfare and Business Management (IISWBM) had earlier tied up with Pantaloon Retail for a two-year retail management program and now NSHM has recently tied up with RAI for postgraduate programs in retail management.

According to Krishnendu Sarker, head of learning systems at NHSM, the 18-month residential programme is targeted at the high end of students and entrance will be conducted on a national level, similar to the CAT.

Thursday, May 03, 2007

Source: Telegraph India

2. HR is the name of the gameThe retail sector is dependent on its manpower, and its short supply is leading to companies taking strong steps to retain as well as attract talent. Reliance Retail, for example, has hired 15 people who visit other stores to size up the sales staff and make them on-the-spot offers. Spinach took an even more interesting approach and has hired 100 vegetable and fruit vendors from the street and has given them Rs. 6,000 per month along with benefits such as medical insurance, PF and insurance.

According to Arvind Singhal, chairman of Technopak Advisors, “Education, language no bar. Retailing will create just the kind of jobs India’s unemployed and poor needs.” It is being said that retailing will change the fate of India’s poor in the same way that BPOs changed the fate of the middle class.

Saturday, May 05, 2007

Source: The Economic Times

Sector specific:

Apparel & Footwear:

1. Prateek Apparels to introduce international brandsPhulchand Group of Companies, Prateek Apparels will be bringing in 3 international lifestyle brands. The company will be targeting metro cities and will open 11 exclusive stores ranging from 30,000-70,000 sq ft of space. The company will also be launching Prateek Lifestyle as a separate subsidiary. The company provides garments to companies such as Westside, ITC Wills, Benetton, Provogue, Pantaloon, Spykar, Levi’s, Dockers, Allen Solly, Peter England, Van Heusen, Arrow, Weekender, Shoppers’ Stop and many more.

Thursday, May 03, 2007

Source: Business Standard

2. Cottons by Century bets on formal wearBK Birla’s brand Cottons by Century is looking for its formal wear to drive sales in the ongoing financial year. According to Mahendra Padhy, marketing head for Cottons by Century, the company’s new range of apparel will increase sales in the formal wear segment. In recent years, men’s wear accounted from 60% of the company’s sales.

The company has made plans to open 100 franchisee stores in 40-50 cities, with the main thrust on tier III cites. Metro and tier II cities are being targeted fro their exclusive stores. Their core customer is between the ages of 25-45 and is both fashion conscious and value conscious.

Friday, May 04, 2007

Source: Business Standard

Home Furnishings:

1. Godrej Lifespace to expand its presenceThe retail division of Godrej & Boyce, Godrej Lifespace has made plans to increase its stores from 49 to 100 by the year 2010, with an investment of Rs. 200 million. The company will also be investing Rs. 500 million on advertising and promotions and Rs. 100 million on developing talent. Besides home and office furniture, home appliances, and accessories, the company will also be adding newer product categories to its range.

At present the company has stores in 25 cities, for a total of 49 stores. New stores will be opening in Andhra Pradesh in cities such as Vijaywada, Vishakapatnam and Hyderabad, which is one of their most successful and profitable centers.

Monday, April 30, 2007

Source: The Economic Times

Consumer Durables:

1. Samsung ties up with larger retailersConsumer electronics major from South Korea, Samsung is aggressively teaming with larger retailers such as Reliance Digital, Croma, Future Group, Metro Cash & Carry and HyperCITY to increase its topline growth. The company plans to earn 10-12% of its turnover from the large format retail channel.

According to Pradeep Tognatta, director of sales for Samsung India Electronics, “We have decided to partner with the large format retail chains. We’ve tied up with top retailers, some of them specialise purely in electronics. There are more tie-ups in the offing. We are using the specialised stores to create a complete brand experience — creating LCD walls and putting up special displays for certain focus categories.”

Samsung will also be tying up with Kuwait based Kirby to set up stores in Noida and Gurgaon. There are also plans to tie up with Dubai based Jumbo Group to set up stores in Delhi and the surrounding areas.

Saturday, May 05, 2007

Source: The Economic Times

Food & Grocery:

1. Reliance Fresh adds groceriesReliance will add groceries to its stores, rather than just selling fruit and vegetables. According to Gunender Kapur, president and chief executive of Reliance Retail’s food business, “We are looking at changing the product mix in our stores. We are learning with time and constantly evolving. We find that some categories aren’t selling up to expectations. We would replace those with other items.” The company will be reducing or completely replacing products that are not selling well in their stores. The sales of fruit and vegetables have been declining at their stores and the company is making an effort to increase the bill size that has stagnated at Rs. 120-130.

The average bill size at Subhiksha is usually around Rs. 300-320, and the company has a 60:40 product mix tilted towards grocery. The high cost of wastage in fresh fruits and grocery is what is making Reliance change its stores. Reliance is still sourcing fresh fruit and vegetables from the mandi as yet, since it’s own farm to fork initiative has not yet started.

Wednesday, May 02, 2007

Source: The Economic Times

Pharma:

1. Wal-Mart might source generic drugs from IndiaWal-Mart is reportedly in talks with several top pharma companies to source generic drugs directly from them for their stores globally. Industry sources report that companies such as Ranbaxy, Dr. Reddy’s Labs (DRL), Cipla, Lupin, Sun Pharma and several other small to mid-sized firms based in Bangalore, Chennai and Hyderabad are holding talks with Wal-Mart.

Tuesday, May 01, 2007

Source: The Economic Times

Retail Updates

General Plans and Information:

1. Mandi’s are turning into corporatesThe first terminal market in the country is to being developed in Chandigarh and several companies such as Reliance Retail, Bharat Hotels, NCDEX, DCL Shriram Group, Zoom Developers and RK Foodlabs are in the running to develop it. The central market will work as a hub for assembly and trading of agricultural commodities. Other locations for terminal markets will be Hyderabad, Tirupati, Patna, Nashik, Nagpur, Bhopal, Indore, Jabalpur, Ludhiana, Jaipur, Chennai, Howrah and Kharagpur.
Monday, May 14, 2007
Source: The Economic Times

2. Manufactures get upset over discounts given by retailersManufacturers from several sectors including FMCG, consumer durables and others are protesting the widespread use of giving discounts to customers at organized retail stores. According to one retail expert, "Discount offers provided by organised retail chains are increasingly eating into the small retailers' pie. Thus, creating a problem for manufacturers, since it is the smaller players that drive bulk of their sales, in spite of the hype around the retail boom."

FritoLay has even stopped supplies to Big Bazaar and Food Bazaar stores for the past few weeks to make the retailer stop selling its products at lower prices. Manufacturers in other segments such as consumer durables are also putting the pressure on retailers, but organized retailers are not succumbing to the pressure as they are already quite used to it.

Tuesday, May 15, 2007
Source: The Hindu Business Line

3. Protests continue against Reliance Fresh storesProtests continued against Reliance Fresh stores in Indore, as local vegetable vendors and middlemen attacked a guard and a vehicle of Reliance Retail. Business at Reliance Fresh stores is brisk, with all six stores have sold products worth more than Rs. 200,000.
Thursday, May 17, 2007
Source: The Economic Times

Big players - plans and investments:

1. Birla Group to launch new brand The Aditya Birla Group will be launching its new retail brand, which will be spearheaded by the Trinethra stores, which the company had bought earlier this year. The first store will be opened in Pune in June under the new brand. Trinethra’s stores will be re-branded as well.

The Birla Group is planning to open 20-25 stores in each city that it sets up shop and will start is hypermarket division next year. The company has hired several retail merchandisers from Reliance Retail and some senior executives for its top management.
Tuesday, May 15, 2007
Source: The Hindu Business Line

2. Reliance Retail’s entry to Bengal might be delayedReliance Retail’s plans for Bengal could be delayed due to political uncertainties as the All India Forward Bloc (AIFB), which controls the Agriculture Ministry is putting up resistance against the plan to procure agri-products directly from farmers. Reliance has already selected several pieces of property for its Reliance Fresh stores.
Wednesday, May 16, 2007
Source: The Hindu Business Line

3. Spencer’s looking for international brandsRPG Group owned Spencer’s Retail is keen on tying up with an international lifestyle brand and is holding talks with several firms who deal with apparel, footwear, luxury retail and lifestyle products. Spencer’s Retail accounts for 8% of the company’s overall turnover. Other RPG brands are Music World, RPG Cellucom, and Books & Beyond.

According to Sanjay Gupta, vice-president (business development) for Spencer’s Retail, “We are looking at firms with whom we can attain critical mass, but most of the big ones have already concertized plans.” While most retailers are focusing on building their own private labels, RPG is more interested in tying up with established brands.
Thursday, May 17, 2007
Source: Business Standard

4. Aditya Birla Retail announce $2 billion investment in retailThe Aditya Birla Group announced that it would be investing approximately $2-2.2 billion (Rs. 80-90 billion) for its retail venture in the next three years. The chairman of the group Kumar Mangalam Birla made the announcement. The company will not be tying up with any international partner and will open their first store in Pune next month.
Friday, May 18, 2007
Source: Reuters

5. Birla’s retail brand to be called MoreThe Aditya Birla Group unveiled its brand which is to be called More. The store will be launched in both the supermarket and hypermarket formats, with the first store opening next month in Pune. Sumant Sinha, CEO of Aditya Birla Retail said that the company chose Pune for its great combination of all elements from the company’s target markets.
Saturday, May 19, 2007
Source: The Economic Times

International:

1. Shoppers’ Stop and Macy to tie upDepartment store chain Shopper’s Stop will be tying up with Macy Inc; US based retail chain and owner of the largest department store in the US. The company was known as the Federated Department Stores until January this year when it was renamed as Macy Inc and has 112 Macy stores and 38 Bloomindales stores. Shoppers’ Stop has been in talks with several retail companies from across the world, including unsuccessful talks with the Spanish Inditex group, which owns the Zara brand.
Monday, May 14, 2007
Source: Financial Express

2. Oak Investment to start $200 million retail fundOak Investment Partners, a US based venture fund announced that it will be launching a $200 million retail fund. Jacob Kurien, the former COO of Tanishq and the CEO of a prominent food chain are two of the high profile entrants into the firm. Operations in India will start sometime in the beginning of next year. Jerry Gallagher, general partner of Oak visited the country recently and went to several of the malls in the metros and held several meetings with mall developers and retailers on this venture.
Tuesday, May 15, 2007
Source: The Economic Times

3. Arvind Mills to bring in DieselArvind Mills and Diesel, an Italian denimwear company, have signed a joint venture to launch the Diesel brand in India. The new joint venture company will be called Diesel India Fashion and will be operated by Arvind Mills who will control 49%. Diesel will hold the majority share of 51%. With the entry of Diesel, the majority of international denim brands will have a presence in India. Other brands are Gas, Guess, Levi Strauss, Lee, and Wrangler.
Wednesday, May 16, 2007
Source: Business Standard

Support Industries:

1. Retail design firm WD Partners to open office in IndiaUS based WD Partners, an architectural and retail design firm has opened an office in Mumbai with a team of 25 architects and engineers. The operations in India will be increased to 105 professionals in two years. On the company’s entry to India, Chris Doerschlag, CEO of WD Partners, said "It made sense to expand into a city where retail is expected to grow very quickly over the next decade."

WD Partners has been in this business for 39 years and its client list includes high profile companies such as BP, The Home Depot, ExxonMobil, Gap, D’Angelo, Abercrombie & Fitch, Safeway, Wendy’s and Starbucks. It’s Mumbai operations will be headed by Rajesh Chhablani, an architect who has worked on international projects for retailers such as Gap and Victoria’s Secret.
Saturday, May 19, 2007
Source: The Economic Times

HR News:

1. Times Business launches retail courseTimes Business Solutions announced that it will be launched a specialized retail management course in collaboration with Lady Irwin College. The course will be for 80 hours and will cover four modules of retail space, facilities, customer relationship and brand management.
Wednesday, May 16, 2007
Source: The Economic Times

Government Policy:

1. George Fernandes takes up the cause of vegetable vendorsThe attacks on Reliance Fresh stores last week in Ranchi have led to JD (U) leader George Fernandes taking up their cause. Consumers however are thrilled with the option of being able to choose where to shop and still visited the three Reliance Fresh stores in Ranchi that are now being guarded by the Jharkhand Armed Police.
Monday, May 14, 2007
Source: The Economic Times

Sector specific

Apparel & Footwear:

1. Raymond to launch line of lower-priced apparelRaymond will be coming up with a line of lower priced apparel, by creating a new brand. The company has several brands such as Raymond, Color Plus, Park Avenue and Parx at present. The fact that the growth in the apparel market is at 34% compared to the growth of the premium segment at 24% is an important reason for this expansion.
Monday, May 14, 2007
Source: Business Standard

2. Arvind Mills to focus on retailArvind Mills will be shifting its focus onto domestic retail rather than denim exports after it received a 75% decline in profit in the last quarter due to reducing margins in the global denimwear market. Arvind is one of the largest denim manufacturers in the world. Sanjay Lalbhai, the managing director of Arvind said that he expects the Arvind brands to contribute to 50% of the company’s entire business by 2010, while at present it stands at 35%.

Arvind’s brands include Arrow, Lee, Wrangler, Kipling, Nautica and Jansport from the international arena and Excalibur, Flying Machine, Ruf & Tuf and Newport from its domestic kitty of brands. The company will be launching its Flying Machine brand in the US and Europe after six months.
Thursday, May 17, 2007
Source: Business Standard

Food & Grocery:

1. Big Apple to set up 100 storesExpress Retail Services announced that it will be expanding its convenience store chain Big Apple, and will be opening 100 stores by August this year. The company has 25 Big Apple stores at present and work on a similar principle as the US based 7-Eleven stores. Average stores are in the range of 1,500 to 1,800 sq ft and stock more than 2,500 products.
Sunday, May 13, 2007
Source: The Economic Times

2. Reliance Fresh opens in IndoreReliance opened six fruit and vegetable Reliance Fresh stores in Indore this past week. At the opening, Raghu Pillai, President and CEO of the company said that the company would continue to expand aggressively as they have been doing in the past. Reliance has opened 151 Reliance Fresh stores in the last six months, covering a total of 419,000 sq ft of space.
Tuesday, May 15, 2007
Source: The Economic Times

3. Subhiksha to source bulk of vegetables from NashikChennai based food and grocery retailer, Subhiksha will be sourcing half of its fruits and vegetables from its Centralized Processing Unit (CPU) in Nashik. The company has 750 retail stores, with 105 located in the state of Maharashtra, 75 in Mumbai, 15 in Pune, 6 in Nashik and 6 in Aurangabad.
Subhiksha sells an average of 5-6 tones of fruit and vegetable per day. The company will be adding 250 stores in the next few months, with each store stocking around 4,000 items. Wednesday, May 16, 2007
Source: Business Standard

4. Spencer’s Retail opens hypermarket in JaipurRPG Group owned Spencer’s Retail announced that it would be opening 15 large format stores in Jaipur by the end of the year. The company opened its first hypermarket in the city, which covers 20,000 sq ft of space and sells 25,000 products.
Thursday, May 17, 2007
Source: The Economic Times

5. Café Coffee Day and Ginger Hotels form agreementIndia’s largest coffee chain Café Coffee Day has tied up with Ginger Hotels, which is owned by Indian Hotels Corporation Ltd. According to the agreement, Café Coffee Day will open an outlet in the hotel. Ginger Hotels are located in seven cities and another 25 are to be added by the end of the year. Thursday, May 17, 2007
Source: The Hindu Business Line

Jewelry & Watches:

1. Neighborhood jewelers getting left out in organized retailYour neighborhood jeweler is likely fighting for survival amongst the big branded jewelry chains in malls. Most consumers are placing convenience of these new locations and are doing the bulk of their shopping there. Consumers are also becoming aware of the higher standards of branded showrooms and want value for money as the gold prices increase. Many jewelers are switching to manufacturing and supply instead of retailing.
Thursday, May 17, 2007
Source: The Economic Times

Luxury and Lifestyle:

1. Christian Dior to invest in retailFrench luxury brand Christian Dior will be converting its franchisee to a subsidiary so that it can invest in retail, manpower, training and operations. Till now it was the franchisees who were doing the investment. Christian Dior Couture’s interest in India has increased due to the government’s decision to partially lift the ban on foreign investment and allow up to 51% of investment in single brand companies.
Friday, May 18, 2007
Source: The Economic Times