Retail insight on 19th August 2009

Aug 19, 2009

News and Analysis for the retail industry

News

Spencer's to dilute 10% to raise funds Economic Times RPG Group-owned Spencer's Retail is looking at diluting 10% stake to raise funds via private equity route and scouting for a partner for its back-end operation, even as it deliberates a cautious expansion plan after having made massive cuts in the past 12 months.

Snowfall in hot and sunny weather There's always something new happening at Ansal Plaza Mall Click here for more details Thousands of shoppers cheered, threw snowballs and walked wide-eyed across the Ansal Plaza malls as they enjoyed snowfall. Snowfall during the festive season added more fun and beauty to the celebrations last Diwali. The shoppers felt a new experience of shopping in new delight and comfort. It was another innovative event of Ansal Plaza where huge snowfall machines were imported from abroad to make the artificial snow.

Madura back in the black on cost controls, better margins Economic Times Aditya Birla Nuvo's fashion retail business Madura Garments, India's largest apparel maker, has turned cash positive after battling losses for 15 months in the wake of slowing consumer spend. The Rs 1,000-crore operations, with brands like Louis Philippe, Van Heusen and Allen Solly, posted cash profit in July and is projecting 10% rise in sales during the fiscal.

Coffee Day slates expansion plans to foray into 8-10 cities fnbnews.com Cafe Coffee Day has slated investment plans to the tune of Rs 150 crore to open up 200 cafes taking the total number from 800 to 1,000 by the end of this fiscal. Currently, the coffee chain major has a presence in 130 cities and intends to increase this to around 8-10 major towns including Gangtok and Dhanbad.

Govt approves Inditex JV for Zara Economic Times The government has approved a proposal of the Spanish apparel player, Industria de Diseno Textil, Sociedad Anonima (Inditex SA), to set up a joint venture with the Tata group subsidiary Trent Ltd with an investment of Rs 23.58 crore. The JV would set up stores to conduct the business of single brand retail of all types of garments, footwear, accessories, fragrances and cosmetics products.

Retail Trends

'We will push topline in the coming quarters' Business Standard Govind Shrikhande, who joined Raheja-controlled Shoppers Stop eight years ago as vice-president, took over from BS Nagesh as the managing director and chief executive officer on Tuesday. Shoppers Stop just turned profitable in the June quarter after posting losses in 2008-09. In a telephonic chat with Raghavendra Kamath, he charts out the company's growth plans.

Amid fund crunch, Vishal Retail founder comes under attack Livemint Starting with a tiny clothing store in Kolkata in 1986, Ram Chandra Agarwal built Vishal Retail Ltd into one of India's biggest supermarket chains, with 170 outlets countrywide. But some present and former employees complain that 23 years later, the chairman and managing director still runs the chain like a small enterprise rather than as a listed, professionally managed company that earned Rs1,323 crore in revenue the last fiscal.

Retail Insight

Unlocking the Wholesale Value Chain Jesta I.S. The drivers of today's global product sourcing challenges are flexibility, visibility, control, and diversification; as companies continue to source globally; to an ever consolidating manufacturing base. In the recent study entitled "Excellence in Sourcing" conducted by Kurt Salmon and Associates (KSA) for Apparel Magazine (August 2008), 41 percent of respondents surveyed reported that they outsourced more than 75% of their production either through the traditional CMT model or full package purchasing. Faced with constantly shifting sourcing alternatives, IT executives are being asked to provide solutions that improve supply chain visibility and increase supply chain flexibility. The key to justifying technology projects is developing and adhering to a sound ROI business plan. Users are building and measuring their return on investment in the following areas: Increased Fill Rates Improved Sourcing Productivity Reduced Charge Backs Reduced Expedited Freight Costs Improved Inventory Utilization