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Archive for December, 2008

Kiranas to survive retail onslaught: PwC

Posted by retailigence on December 10, 2008

A switch from unorganised to organised retail will bring in huge benefits, not only for the government in the form of taxes, but also for consumers, farmers and unorganised trade participants alike in a big way, says a report by PricewaterhouseCoopers (PwC).

Apart from helping India become a sourcing hub for the world, organised retail will also help create huge employment opportunities, introduce newer products in the market and create lasting relationships between farmers/producers and the industry, says the report, which was in released association with Confederation of Indian Industry here on Tuesday.

At the release of the report titled ‘The benefits of modern trade to transitional economies’, NV Sivakumar, executive director and leader (retail and consumer practice), PwC, said that it has been observed that contrary to critics’ views, the growth of modern, organised trade in transitional economies does not stifle unorganised retail. Rather, it helps create a level playing field, while ensuring continuous growth of kirana stores. “Kiranas cannot be replaced by organised retailers in India. Their relevance will be felt more as there is no alternative to them in areas where organised retailers cannot enter,” he pointed out. The growth of organised retail will lead to creation of local distribution channels, which in turn will improve the quality of produce available in local markets. In addition, engaging with local suppliers will boost the local economy and also lead to generation of more employment, he noted.

Among other things, the report mentions that the shift from unorganised to organised retal will bring in Rs 24,000 crore into the State exchequer by 2010, in the form of value added taxes (VAT). The report, which was prepared before the economic downturn hit India, has taken into consideration six major factors: consumer benefits, contribution to exchequer, benefits to farmers, growth of kirana stores, employment generation in rural, semi-urban areas and engaging small vendors into modern retailing.

The report says that although the retail sector has succeeded in evolving as an organised revenue generating sector, it continues to be challenged by some issues under the present indirect tax regime. On the consumer side, the report says that modern trade will result in increased availability of choice in products and services, rationalisation and convergence of prices, better quality of food and non-food products and a zero-tolerance policy for inefficiencies, since consumers will be unwilling to pay for substandard products.

The report also point out that organized retail will, by establishing an efficient supply chain that links farmers and small manufacturers directly with retailers, maximise value for all stakeholders.

Sources :- The Financial Express

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FutureBazaar selects CyberSource for anti-fraud solution

Posted by retailigence on December 10, 2008

Driven by Indian B2C eCommerce sales, that is expected to grow at 195 per cent between 2008 and 2011 (eMarketer, Asia-Pacific B2C E-Commerce, January 2008), FutureBazaar India, the online shopping portal of Pantaloon Retail, one of India’s leading retailers, has selected CyberSource Ltd’s Decision Manager anti-fraud solution.

FutureBazaar offers a wide range of home products online including toys, clothing, books, consumer electronics, and larger items such as kitchen appliances. CyberSource Ltd is a subsidiary of UK-based CyberSource.

On the development, Virendra Chhatbar, chief finance officer, FutureBazaar, said, “As eCommerce continues its rapid growth in India, retailers large and small must be increasingly vigilant to the threat of fraud. CyberSource’s proven risk management solution gives us that greater level of intelligence. CyberSource has considerable experience working in the Indian online environment, a factor that strongly influenced our decision.”

Using Decision Manager, FutureBazaar can now access over 150 global validation tests to screen for fraud and determine in real time whether online transactions should be accepted, rejected or marked for further review, said a company press release.

Sources:— IndiaRetailing Bureau

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Bw!tch launches its first exclusive retail outlet in New Delhi

Posted by retailigence on December 10, 2008

Bw!tch, India’s first designer intimate wear brand and a subsidiary of Genesis Colors, has launched its first exclusive retail outlet in Greater Kailash area of national capital.

Bw!tch product range available at the outlet includes lingerie under six categories — Core, Occasional, Functional, Fun & Fantasy, Teen and Sporty, said a company press release. However, the range is also available at Shopper’s Stop, Lifestyle stores, Westside stores and Pyramid across Delhi, Mumbai, Bangalore, Hyderabad, Chennai and other premium retailers pan India.

Genesis Colors is also the holding company of fashion labels — Satya Paul, Deepika Gehani, and Shobhaa De. Along with promoting these designer labels, the company has also ventured into multi brand retailing with its luxury retail chain Samsaara.

Sources :— IndiaRetailing Bureau

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Shoppers Stop’s to go ahead with investment plans

Posted by retailigence on December 10, 2008

Fashion and lifestyle retail chain Shoppers Stop will pursue its expansion plans despite slackening sales and credit crunch following global economic meltdown, a top company official said.

“The next three-four quarters are not going to be the best of quarters and India cannot isolate itself from what is happening in the world. But there is no change in our investment and expansion plans,” Shoppers Stop Managing Director B S Nagesh said in Mumbai. The retail chain in April announced plans to infuse Rs 1,000 crore for expanding its existing store space of 1.3 million square feet to 2.7 million square feet over the next 3-4 years. “All our prior investment plans are in process, based on delivery,” Nagesh said, adding “yesterday, we inaugurated an outlet at Vashi (near Mumbai). In two weeks, we plan to open another in Jaipur”.

On the company’s joint venture with the Nuance Group, Nagesh said the Rs 25-crore airport retail joint venture was now operational at both Hyderabad and Bangalore. Measures taken by the government so far and the Reserve Bank of India, and more that would ensue, would reinstate investor confidence, he said.

Sources :- The Financial Express

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Spencer’s Retail eyes Rs 1,250 cr revenue by FY’09

Posted by retailigence on December 10, 2008

RPG group company Spencer’s Retail plans to scale up its hypermarts chain to 400 and is targeting a turnover of Rs 1,250 crore by March-end.

The company also said it would continue to pursue its existing expansion plans and that the global economic meltdown would not impact it significantly. “We are on track to have 400 hypermarts and achieve a turnover of Rs 1,250 crore by end-march,” a company spokesperson said in Mumbai. In FY’08, Spencer’s clocked a turnover of Rs 820 crore. “We are focusing on setting up more hypermarts across the country,” he said. Spencer’s Retail at present has 32 large-format stores in 66 cities pan-India, spread over 1.5 million square feet.

The retail chain has earmarked a Rs 1,500 crore investment for the expansion over a two-year period up to March 2009. The spokesperson said upmarket stores such as Spencer’s would not be affected due to the present global scenario. “Upmarket stores such as Spencer’s, which are not price-driven as much as others, will not be impacted by inflation and the global meltdown,” he said. The ones most likely to be affected are retail chains such as discount stores, catering to the low-income group, he said. Consumer spending is likely to shift from luxury goods to essentials with a slowdown in the economic cycle impacting demand negatively.

Sources :-The Financial Express

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Strategic Management

Posted by retailigence on December 1, 2008

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Terrorist Attack on Mumbai

Posted by retailigence on December 1, 2008

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Growth Strategy(I)

Posted by mukeshkumar84 on December 1, 2008

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Grand Stratagies

Posted by retailigence on December 1, 2008

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GROWTH STRATEGIES(II)

Posted by retailigence on December 1, 2008

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