Retail Insight on December 22nd 2009

December 22, 2009

News for the retail industry

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News

Future Agrovet to wind up 60 Fair Price shops Financial Express Future Agrovet Ltd, part of the Future Group, is closing down around 60 non-profitable stores out of a total of 160 KB's Fair Price shops. Narendra Baheti, managing director, Future Agrovet, told FE, "Our losses from the KB Fair Price shops are around Rs 75 crore. This is because KB's Fair Price Shops could not sustain competition from local kirana stores."

Medicine Shoppe pulled off from Indian market, final settlements for closure to complete soon Pharmabiz.com The US major, Cardinal Health Inc, has finally pulled out from its ambitious pharmacy chain joint venture, Medicine Shoppe, after 10 years of unsuccessful operations in India. With the brand withdrawn from the market last year, the Indian investor in the joint venture is in the process of settling the liabilities with the retail sub franchisees, it is learnt.

Vishal Retail cans small-format store plans Daily News & Analysis Vishal Retail, which is undergoing a Rs 730 crore debt restructuring exercise, is exploring all revenue channels, including renting out shop-in-shop space to regional food and beverages players in its hypermarket stores across the country. Vishal is also putting on hold all its small-format stores. It has closed all its around 12 Corner Marts set up within HPCL petrol pumps.

Aditya Birla Nuvo to consolidate garment units Myiris.com Aditya Birla Nuvo announced that its shareholders have approved the composite scheme of amalgamation between Aditya Birla Nuvo and Madura Garments Exports and MG Lifestyle Clothing Company (P) and Peter England Fashions and Retail and their shareholders and creditors, with requisite majority.

Retail Trends

Luxury goods are a guilt-inducing indulgence: Survey Economic Times What's Christmas without a little indulgence and a lot of guilt, with a global survey showing two in three people occasionally treat themselves to a luxury purchase, but a third then feel bad about it.

Shoppers drift back, spur mall developers to revive projects Livemint Mall developers in India seem to have regained some of the bravura that was punctured by the economic slump, which took its toll on the country's retail sector last year. Some developers are reviving projects as the economy gathers growth momentum and rentals start looking up with shoppers returning.

Coffee cafes brew heady cocktails Times of India Say cheers to a new cafe culture. India's cult cafe outlets are brewing a heady mix of beverages, a wide range of alcoholic and non-alcoholic blended hot and cold coffees, coffee beer, and coffee-based rum, whisky, vodka, gin, brandy and liqueurs. Cafe Coffee Day is brewing what it calls a High Spirits menu at its centre in Chikmaglur. Coffee World, run by Global Franchise Architects, had last year introduced an item called coffee beer on a trial basis, which was a mix of coffee and lemonade.

'Hagen fresh in mind, Xmas turns green Times of India With Christmas round the corner, there's no stopping shoppers in the capital. And green appears to be the flavour of the season. That eco-friendly items are a rage is evident from the high demand for green Santa Claus caps.

Retail Insight

A Stitch in Time: Using Acceleration to meet the Challenges in Apparel and Footwear Infosys Fashion production and retail chains continue to juggle their need to put out new collections under competitive pressure with the consumer demand for variety, choice and quality. Speed to market can be critical for certain product categories, whereas other lines may need to factor in consumer feedback with consequently longer cycles.