Retail Insight on September 11th 2009

Sep 11, 2009

News and Analysis for the retail industry

News

Retail foes turn friends for cutting costs NDTV.com Modern retailers are shopping for the next big idea. While they have been keen to team up for sharing backend resources like infrastructure and warehouses, they now want to share data that's rather vital, things such as information about customers, employees, properties and even vendors.

Tata, Videocon talks with PEs hit a wall Economic Times Talks between leading consumer durables retail chains - such as Tata's Croma and Videocon's Next and Planet M - and private equity firms for possible stake sales seem to have hit a wall due to differences over valuations.

Salon chain Naturals eyes Rs 100 cr PE Economic Times Salon chain Naturals' is looking for a Rs 100-crore PE infusion to go national. The amount will be raised in two tranches of Rs 50 crore each, for a 25-30% stake in the company.

Big Mac's new menu Business Standard At a time when food prices are going through the roof, Big Mac is calling you for lunch and dinner that cost 25 per cent less than what you paid yesterday.

Retail Trends

Global retail majors trim India biz Economic Times Wal-Mart has closed down its quality-control department in India, as the largest retailer continues to downsize its outsourcing operations in the country in spite of early signs and rising expectations of a recovery from the world's worst economic crisis after the Great Depression.

Are stocks of retail companies building room for disappointment? Livemint Retail stocks such as Pantaloon Retail (India) Ltd and Trent Ltd are up by 14% and 10%, respectively, from their levels a month ago, while Shoppers Stop Ltd is up by nearly 50%.

Retail Insight

Leaner Retailing: Overhauling your cost structure for sustainable, long-term effectiveness Kurt Salmon Already industry analysts and experts are calling 2009 a write-off. Amidst a flurry of bad news that amounts to the most challenging retail environment in nearly a century, many industry giants are fighting to survive. Yet history demonstrates that investing in building key capabilities now will likely mean faster, stronger growth once the economy recovers. So what are the right priorities for retailers? Certainly, cost reduction is critical for all retailers. For healthier retailers, aggressive but prudent cost reduction can fund an investment in key capabilities. whereas a more aggressive approach to cost reduction may be appropriate for retailers facing significant profit or liquidity issues. The key for both groups is to act quickly. Retailers that delay profit improvements run the risk of creating a liquidity crisis, which can result in ruin in the current credit crunch.