Retail Insight as on 11th March 2010

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March 11, 2010News for the Retail industry









Previous Issues

News: Apparel, Specialty, CDIT ...



Aditya Birla Retail to rope in investor

Times of India

Kumar Mangalam Birla's retail venture, Aditya Birla Retail, is reportedly open to roping in a financial investor to fund its expansion plans. Even though the company declined comment, it is learnt from sources that the firm is not averse to diluting its equity by about 10% to a sleeping partner. However, it would rather wait for more clarity on the regulatory front with respect to such investments.





Pepe's global owners eye direct control of India arm

Moneycontrol.com

Pepe's global owners plan to take direct control of Pepe India via a joint venture, reported CNBC-TV18, quoting VCCircle. The foreign owners plan to keep up to 51% stake. Pepe is looking for a local partner. The owners are in talks with Shoppers Stop and the Landmark Group. Pepe is among the largest denim brands in India. Pepe India's annual turnover is Rs 300 crore.





Actis, Nilgiri Founders Work On Compromise Deal

VC Circle

Private equity major Actis and original promoter group of Nilgiri Dairy Farm are in the midst of conciliatory discussions to jointly and amicably steer the Bangalore-based retail firm's operations. Simply put, Actis and the family are reworking the existing relationship to steady the operations of Nilgiri Dairy Farm, which operates a network of 100 odd food and grocery stores in South India through franchisee arrangements under Nilgiri's brand. However, no further detail was available regarding the ongoing settlement talks.







Celio launches two stores in Mumbai

indiaretailing.com

Celio, the hi-fashion French men's apparel brand, has launched two more stores in Mumbai at Colaba and Vashi. "Celio is already present in Mumbai at the R City Mall and Palladium. The South presence includes the recent store in Chennai in Ampa Mall and Brigade Road in Bangalore," said Rajat Luthra, CEO, Celio Future Fashion Limited.







Titan Watches unveils 'Obaku' collection

India PRwire

Titan watches, the fifth largest watch manufacturer in the world, has collaborated with Danish designers to launch a beautiful collection 'OBAKU' from Titan. Obaku takes its name from a branch of Zen philosophy in Japan.







Reliance Footprint all set to expand

MyNews.in

Reliance Footprint - the footwear arm of Reliance Retail Group, is eying major expansion. Gopalakrishnan Sankar, Chief Executive, Reliance Footprint said, "The places where we are set to open our stores include Jabalpur, Amritsar, Hyderabad, Ahmedabad, Belgaum, Vijayawada, Mysore, Coimbatore, Gurgaon, Raipur, Mumbai, Bhubaneshwar."





News: Food & Grocery, QSR ...





Siva Group buys 50% in Norway's Isklar for $22 mn

Economic Times

The diversified $3-billion Siva Group, headed by NRI C Sivasankaran, said it has acquired a 50% stake in Isklar, a Norwegian Glacial natural mineral water company and a premium-bottled water brand in the UK and Norway. The deal concluded for $22 million, has led to Isklar turning into a 50:50 JV with the Siva Group picking up a 50% stake and the original promoters, Sabco, which is a water brand from Oman, and Java Holdings holding the rest.





Sugar retail prices come down

Economic Times

Improved supply and higher output figures for 2010-11 pressured down sugar retail prices countrywide over the last month to the Rs 37-39/kg range, down noticeably from a high Rs 50-odd/kg last year end and early this year. As compared to earlier estimates, sugar output projections for the coming year are pegged at a higher 16+ million tonnes, even around 17 mn tonnes.





Retail Trends



Retailers look afresh at wholesale biz

Business Standard

Retailers are taking a relook at cash and carry (wholesale trading) ventures in the hope of tapping millions of kiranas (independent stores). The potential tie-ups with overseas firms, which are allowed to invest freely in the cash and carry business, are an additional temptation, say retailers and consultants tracking the sector.





Premium clothes set to cost more

Economic Times

Premium clothing brands such as Van Huesen, Arrow, Izod, US Polo, Reebok and Kimaya Fashions are set to hike prices by up to 10%, to offset higher input costs, while others such as Wills Lifestyle, Marks & Spencer, Reebok and Benetton plan to absorb higher costs to keep their sales growth intact. The Cornelian dilemma, where retailers are torn between increasing prices that may impact sales in a recovering market and absorbing 25-30% jump in prices of yarn and cotton to take a hit in their margins, has vertically split the industry.





Same-store sales growth back on track, say retailers

Daily News & Analysis

With buyers returning and sales improving in the last six months, a buoyed retail industry has started charting growth plans. The negative and flat same-store sales (SSS) growth numbers are turning positive and the industry says sustainable double-digit SSS growth is not far. Major retailers such as Pantaloon Retail, Shoppers Stop, Spencer's Retail, Aditya Birla Retail and Koutons are confident of the growth ahead.





Retail Insight



Using Twitter as a Retail Marketing Tool

Pod1

Getting started with Twitter is all about brands creating a conversation with their customers. Initially, the people that are going to follow any brand on Twitter are likely to be their existing core customers, people who already care about that brand. But once that brand or retailer starts engaging with its audience this will soon expand.