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Archive for October, 2008

Vishal Retail declares Q2 results

Posted by retailigence on October 28, 2008

Vishal Retail has declared its unaudited financial results for the quarter ended September 30, 2008. The Ram Chandra Agarwal-led company has posted a net profit of Rs 40.76 million. While the total income of the quarter stayed at Rs 3607.55 million, the total expenditure stood at Rs 3276.51 million.

Further, the Delhi-based retailer giant also mentioned that as on September 30, 2008, it had 154 stores in 97 cities, covering a retail space of approximately 27.10 lakh square feet.

Source: Images Multimedia


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Lerros targets 15 stores by next fiscal-end

Posted by retailigence on October 28, 2008

With two stores each in New Delhi and Noida, Lerros Fashions India Pvt Ltd, a part of Germany-based apparel major Pearl Global Group, is planning to open 15 stores across the country by 2009 fiscal-end. The company also plans to invest around Rs 150 to 180 million for opening these outlets, said a top company official.

Speaking on the store launch in Bengaluru, Ram Prasad, CEO, Lerros Fashions India Pvt Ltd, said, “With two stores in New Delhi and Noida, we are planning to launch two stores each in Bengaluru, Mumbai and one each in Chennai and Hyderabad. We will also open a couple of more stores in Gurgaon and New Delhi.”

“We have also signed up for stores in malls in Chandigarh and Ahmedabad and have plans to launch 200 such stores in India in next five to six years with an investment of around Rs 600 million,” added Prasad.

Lerros offered 12 collections each in men’s and women’s wear with ample scope for mix n’ match. The company is presently in the process of negotiating and signing up stores in top nine cities in India including Chandigarh, Ahmedabad, Pune and Kolkata.

Source: Images Multimedia

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Ansal Plaza to chill customers with snow fall

Posted by retailigence on October 24, 2008

Come to Ansal Plaza this Diwali and chill out in snow shower as the selected malls of the company is gearing up to offer a true Switzerland feel.

While the event will be organised at Ansal Plaza Delhi on October 25 and 26, the next to follow will be at Ansal Plaza Greater Noida, Ludhiana and Jalandhar on October 27, 29 and 30 respectively, said a company press release.

Arif Sheikh, COO, Ansal Plaza Mall Management Company, said, “For this huge events we have imported snowfall machines from abroad. It will bring a new experience of shopping with snowfall in the mall.”

Meanwhile, the tenants of the mall will arrange theme based displays using cut outs of snowmen, Eskimos and igloo, said the release.

Sources:- indiaretailing

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Slowdown forces corporates to slash Diwali budget: ASSOCHAM

Posted by retailigence on October 24, 2008

On-going economic meltdown has amounted to fizzle out 2008 Diwali excitements to a large extent as majority of business houses on an average have slashed their corporate gift allocation budget by at least 25 per cent, says a recent finding of country’s leading industry group.

While business houses distributed gifts amounting Rs 20 billion during 2007 festive season of Diwali, this year it is going to come down to Rs 15 billion, says ASSOCHAM assesment.

The items being chosen for gift articles for 2008 Diwali by businessmen are mostly those imported from China because of their cost competitiveness and attractive packaging, said DS Rawat, secretary general, ASSOCHAM, while releasing its assessment for forthcoming Diwali on gift distribution.

In the past, the trend was to oblige businessmen’s contact by giving them silver and gold coins, wrist watches, briefcase, brass and silver ware, candle stands, suit lengths, handy electronics items like ipods, DVD player etc. This year, these items are not for much of sale and are being avoided by business houses because of cost factor, said Rawat.

On the contrary, the ASSOCHAM market research reveal that plastic items and toys and other attractive products are being picked up by the concerned department in the corporate world for the gift purposes. Even sale of dry fruits has gone up by nearly 40 per cent in the last couple of days as these are considered handy and most acceptable commodities.

Sources : – indiaretailing

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Airport retailing to flourish: KPMG report

Posted by retailigence on October 24, 2008

The Indian aviation sector is undergoing a turmoil resulting from the global meltdown leading to a subsequent decline in traffic and rise in costs. However, airport infrastructure development (AID) should be given priority by the developers offering enough retail spaces to cash in huge revenue as the domestic and global retailers are now investing more on the segment, according to a KPMG report.

Meanwhile, the study has an optimistic outlook towards the future of airport retail as well. The key findings of the study suggest that the takers for airport retail are spread across industries and service providers. The food and beverages players have showed the maximum interest in creating a presence in airports, and are closely followed by fashion houses and consumer durable players. Most international luxury brands consider setting up shop in Indian airports a definite part of their global strategy.

Speaking on the report release, Rajeev B Batra, executive director, KPMG, said, “Airports in India are a future potential area not just from an aviation perspective but also from a real estate point of view. While this might be a new phenomenon in India, globally, airports have embraced the concept of developing the surrounding commercial areas.”

He added, “In an aerotropolis, a significant component of the revenue comes from non-aeronautical components, which are known to yield faster returns compared to the aeronautical components which is helpful for financial standing of the airport developers.”

Meanwhile, the KPMG report titled ‘Indian Airports – Global Landing Ground’ has tried to map the journey of airport development by analysing the role played by its key stakeholders, the challenges faced at a micro and macro level and the opportunities present in the current landscape, said an official press release.

Sources:- indiaretailing

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Inorbit Mall bags silver at Asia Shopping Centre Awards

Posted by retailigence on October 24, 2008

For successfully organising its promotional event called ‘Power Kids’, Inorbit Mall, subsidiary of K Raheja Corporation, has been awarded with the prestigious ‘Silver Award’ at Asia Shopping Centre Awards, held recently on the sidelines of International Council of Shopping Centres’ (ICSC) Asia Expo at Macao, China.

The mall has been awarded in the sales, promotion, events and marketing category in recognition to its 17-day fun packed event including quizzes, contests and workshops targeted at children as a part of the summer celebrations held at the Inorbit Mall, Malad in May 2008. There was an average of 30,000 footfalls clocked per day during the activity, claimed a company press release.

“We are excited with the recognition that the ICSC has given us with this prestigious award,” said Kishore Bhatija, CEO, Inorbit Malls on receiving the award.

“Apart from the superior design and excellent retail mix that has made Inorbit Malad the most sought after retail destination in the country today, we are also now in the limelight for our aggressive and innovative marketing initiatives,” added Bhatija.

Sources: – indiaretailing

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DLF to bring Alcott, SIA brands to India

Posted by retailigence on October 24, 2008

India’s largest real estate firm DLF has entered into separate franchise agreements with Italian apparel brand Alcott and Paris-based home decor retailer SIA group to launch them in India.

These two tie-ups will give a major boost to DLF’s proposed entry in domestic retail business. DLF already has tie-ups with premium apparel brands Armani, Dolce & Gabbana and Salvatore Ferragamo. The company has been in talks with a number of foreign premium and luxury brands in all categories, including apparel, accessories, travel luggage and watches to build a diversified portfolio of brands when it launches into retail.

Alcott, which derives its name from ‘all cotton’, offers casual wear for both men and women. The company has over 160 stores across Europe. Recently, the Jawad Group, which represents over a 100 international brands in the Middle-East, brought Alcott to Bahrain. Alcott’s next stop is India, where the brand plans to open several stores at malls and other high-street locations.

SIA plans to offer a wide range of products to Indian home buyers, much of which will be initially imported. SIA has a large presence in Europe and the US, and has distribution facility in 30 countries.

The past five years of housing boom has increased opportunities for home decor players, as hundreds of thousands of new home buyers look to decorate their homes. Much of the domestic home decor market is still unorganised in India and brand-consciousness remains low.

The 40-year-old group expects to capitalise on the new opportunitites.

Sources:- Economic Times

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White Wine Good for Heart too

Posted by superstar23 on October 24, 2008

The health benefits of a glass of red wine are well known, but new research from an Indian born scientist at  the University of Connecticut indicates that moderate consumption of white wine could also protect the heart.

The rats of the world seem to be having a great time enjoying wine while scientists are studying the effects of wine on health. The rats that were fed the equivalent of one or two glasses of white wine by researchers in the US in the current study discovered that  their hearts suffered less damage during cardiac arrest than those fed water or grain alcohol, according to the study reported in the New Scientist.

Benefits from the white wine were similar to those found after animals ingested red wine due to the chemical resveratrol found in the skin. “The flesh of the grape can do the same job as the skin,” claims the Indian born molecular biologist Dr Dipak Das. “Their blood pressure and aortic blood flow plummeted less drastically as well.”

Director of the Hatter Institute for Cardiology Research, Professor Lionel Opie, in South Africa, agrees with the evidence provided by Dr. Das but adds that human heart attacks occur from blood clots and diseased arteries and not necessarily mitochondrial failure, which the study seems to indicate.

But Dr Das expects similar studies to soon prove white wine’s worth.

source: indian wine academy

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Carrefour-MGF talks end without deal

Posted by superstar23 on October 24, 2008

The French firm’s troubles in finding an Indian partner come as the boom in organized retail sector is fading

New Delhi: The world’s second largest retailer by revenue, Carrefour SA is again struggling to find a partner for its Indian expansion after talks with the latest in a long line of potential allies, New Delhi-based real estate firm MGF Developments Ltd, ended without a deal.

A person with knowledge of the development who didn’t want to be identified confirmed the ending of talks with MGF. As a result, this person added, the French company no longer expects to sign a franchisee partner in India in 2008. He said the firm was talking to several possible partners, but declined to name these.An MGF spokeswoman said the company “continues to explore strategic relationships with leading domestic and global brands”. She added that her company had never “committed to any discussions” with Carrefour and that any “conclusion or reference in this regard is nothing but mere speculation”.

Shopping around: A shopper outside a Carrefour store in Paris. Antoine Antoniol / Bloomberg

In a November interview with Mint, Gerard Freiszmuth, general manager for Carrefour in India, said he hoped to sign a franchise deal with a local firm by March and that it was in talks with “three very willing Indian partners” that he would not identify.

Six months after the deadline, Carrefour is still without a partner. Somesh Dayal, marketing director of Carrefour in India, declined comment on whether his firm had ever been talking to MGF for a potential partnership, and said while it is still looking for a partner, the primary focus is on the wholesale venture.

He added that there were six companies with whom Carrefour was talking to for a potential partnership, but discussions were still in an initial stage.

Last year, Carrefour had floated two separate units in India, Carrefour WC and C India Pvt. Ltd to roll out fully-owned wholesale stores, and Carrefour India Master Franchise Co. Pvt. Ltd, which was to partner with an Indian company to open the French firm’s branded stores in the country.

Although India allows foreign retailers to sell directly to other retailers or institutions, it bars them from selling to individuals. Single-brand retailers, however, are allowed to own up to 51% in Indian arms that can sell to anyone. The franchise route, where a foreign retailer appoints an Indian firm as a franchisee, is one way companies such as Carrefour can operate in India.

Over the years, Carrefour has been in preliminary conversations with Bharti Enterprises Ltd, real estate companies DLF Ltd and Parsvnath Developers Ltd and Mumbai-based business house Wadia Group among other local firms, for a possible alliance.

Carrefour’s troubles in finding a partner come even as a boom in the nascent organized retail sector in India is tapering off, with firms that entered the business struggling to succeed in a complex market.

So far, Reliance Retail Ltd has around 700 stores, though well short of its September 2007 target of 2,000 stores. Basmati exporter Rei Agro Ltd entered retail with some 200 grocery stores called 6Ten but has shuttered dozens of these in recent months.

Indiabulls Retail Services Ltd, part of the group that also has a presence in financial services and real estate, has shut four of its nine Indiabulls Megastores. Mumbai-based HyperCity Retail closed its pilot small stores and abandoned plans to open about 250 grocery outlets by 2012.

Analysts and experts, however, say India’s modern retail business will grow over time.

A recent report by consulting firm McKinsey amd Co. said the number of potential shoppers at branded stores in India will jump fivefold in the next eight years from 13 million households currently to 65 million households or 300 million consumers.

That could explain why the world’s top retailers including Wal-Mart Stores Inc., Tesco Plc., Metro AG and Carrefour are betting on India. Wal-Mart has forged an alliance with Bharti Enterprises for a wholesale retailing venture while Tesco plans to set up a wholly owned cash-and-carry unit similar to Germany’s Metro.

It is unclear whether Carrefour’s inability to enlist a local partner will in any way affect the company’s plans to open its fully owned cash-and-carry stores by mid-2009.

In Wal-Mart’s case, the joint venture it has with Bharti will feed into retail stores wholly owned by the latter. And Tesco has a similar arrangement with the Tata group’s Trent Ltd.

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Biyani rolls out ethnicity, denies retail slowdown

Posted by superstar23 on October 24, 2008

The Future is changing track. The pioneer of organised retail in India, the Kishore Biyani-promoted Future Group has altered its strategy. From mass to class, the aspirational top-end consumers, to be specific. The undisputed king of Indian retail tells ET that he will focus more on the group’s fashion-driven retail formats like Pantaloon and the latest, Ethnicity, to achieve a turnover of Rs 10,000 crore in 2008-09. Mr Biyani insisted that slowdown is not reflecting from consumer spend. Excerpts:

Despite retail slowdown, you have launched yet another format Ethnicity. What makes you so sure that the concept will click?

Who says there is a slowdown? Although the environment looks gloomy, the Indian consumer is spending on FMCG, consumer durables and garments. Sales do not drop even if the sentiment is negative. Roti, kapda, makaan are essentials and consumer does not stop buying them.

Ethnicity is targeted at the aspiring urban Indian consumer who is looking for exclusive ethnic product-mix during marriages and festivals. It is an attempt to go back to our roots and create a niche category of ethnic wear and products like mojris, semi-precious jewellery, handbags, home decor products, handicraft, etc.

With brands deserting Ahmedabad and two Big Bazaar outlets closing down, are the times too challenging? Do you see a retail graveyard here?

It is a wrong presumption. With Nano happening in Gujarat, there is so much positivity around the state. If Nano can happen, so can Ethnicity. As it is, the success rate of any brand is 20-30%. While we had to wrap up one of the stores because of high rentals and another because we targeted the wrong consumer, we are expanding other formats (in Ahmedabad).

We have plans to set up eight Ethnicity stores across India in the next two years at Rs 8 crore per store spread over 25,000-30,000 square feet. Considering the urban poor customer is devoid of aspiration, a Big Bazaar would not click with them. At the same time, we have realised that we have to focus more on fashion even in Big Bazaar outlets to draw the aspirational `India One’ customer. (Future has re-categorised its target segment under India One, India Two and India Three.)

You are known to experiment with different retail formats. Which one has been your favourite?

All formats launched by the group are close to my heart. At this point in time, Ethnicity and Pantaloon are my favourite formats. That’s where the money is. Pantaloon is overachieving its target. We expect to record a turnover of Rs 10,000 crore in 2008-09 compared to Rs 6,500 crore in the last fiscal.

Ethnicity alone would fetch us revenues worth Rs 25 crore in the first year of operation.

How have real estate prices hit you?

Real estate scenario in a city like Ahmedabad is not inhibiting. In fact, realtors are so welcoming that they let us set shop without expecting any rentals for the first six months. We will add 5-6 million square feet of retail space in the near future.

There was a simultaneous boom in retail and aviation sectors. Now that the crisis looms over aviation sector, do you expect retail to be hit sometime soon? Could retail sector expect lay-offs?

Growth is important to avoid such stagnation. We believe that retail is booming and so there is no question of lay-off at this point. While investors like lay-offs (as it cuts down on the expenditure), promoters believe otherwise. One has to strike the right balance between the capitalist and socialist ideologies. I am a mix of both. A socialist-capitalist and vice-versa.

After Ethnicity, what next?

We are going to open the first stand-alone outlet of John Miller in Mumbai on Friday. The outlet will be located at Kala Ghoda and at the same store where I had started my first journey as an apparel supplier.

source:- economic

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