RetaIl Insight as on 1st March 2010

March 1, 2010News for the Retail industry










Previous Issues

News: Apparel, Specialty, CDIT ...



India signals opening up of retail sector

Financial Times

India has signalled that it could open up its tightly controlled retail sector, as it battles spiralling food prices that threaten to unleash political turmoil and macroeconomic instability. In unveiling his budget, Pranab Mukherjee, finance minister, said, "We need greater competition and therefore need to take a firm view on the opening-up of the the retail trade. It will help in bringing down the considerable difference between the farm gate prices, wholesale prices and retail prices."





Bharti Wal-Mart hopeful of FDI in retail

NDTV.com

Bharti Wal-mart, an Indian joint venture of the world's largest retailer Wal-Mart, has said it is optimistic of India allowing Foreign Direct Investment in the retail sector, given the "progressive" nature of the current government. "We are optimistic that India's progressive government will move ahead with its policies of economic and social reforms, including allowing FDI investment in front-end retail," Bharti Wal-Mart MD and CEO Raj Jain said.





Retailers scale up ops in metros

Economic Times

Retailers are once again scaling up operations in the metros, buoyed by increasing consumer spending and low rentals that remain one-fourth lower than the peak levels of 2007. All the top retailers such as Future Group's Pantaloon, Shopper's Stop, Aditya Birla Group's More Retail and Reliance Industries' Reliance Retail are expanding their operations, according to real estate consultancy firm Knight Frank India.







Tax reliefs to pave way for opening up retail trade

The Hindu

Paving the way for further opening up of retail trade including the food sector, the Union Finance Minister Pranab Mukherjee announced a series of tax concessions for the farm-to-market initiative in his budget proposals for 2010-11. By quoting in his budget address the Prime Minister's recent speech that emphasised "the need to take a firm view on opening up of retail trade," Mr. Mukherjee formalised the government's intent on the issue.





Rental tax back to haunt retailers

Livemint

The Indian retail industry fears it will be set back by nearly Rs 1,000 crore in backlog payments if the government does not reconsider the service tax on rentals it has announced in the Union Budget for 2010-11. But India's biggest retailer, Pantaloon Retail (India) Ltd, said barring five cases, all the property lease agreements the company has signed specifically mention that the landlords would bear the tax if it is applicable.





India needs modern retail

Livemint

If food prices are indeed on a permanently high plateau because of higher demand, then public policy to raise food output in India is a must. The more immediate challenge is to do something about criminal waste, as food rots because of a lack of storage facilities, a tiny food processing industry and an inefficient supply chain riddled with middlemen.There is one answer to all these problems: private investment in modern retail. It seems to have completely slipped off the government agenda.





Seating World to open 4 more 'Simmons' stores

Business Standard

Simmons, an Atlanta (US)-based premium bedding (mattress) manufacturer, forayed into the Indian market with the launch of its first store in Hyderabad on Sunday. "Our idea is to tap the high networth individuals in the upmarket areas, and expose those who work in multinationals to international brands," Rajesh K Manghnani of Seating World, an exclusive distributor to Simmons' products in India, told mediapersons.





News: Food & Grocery, QSR ...



KFC Holdings To Spread Wings To India

Bernama

Fast food operator, KFC Holdings (Malaysia) Bhd, in a move to further spread its wings overseas, will establish 10 outlets in India this year. The company's Chairman, Tan Sri Muhammad Ali Hashim said KFC, which operated 540 outlets in Malaysia, Singapore, Brunei and Cambodia, would spend RM1.2 million to set up each outlet.





Low-cost flying pushes up food & beverage sales

Times of India

As more and more low-cost seats take to the Indian skies, cash counters at food and beverage (F&B) outlets across airports are ringing louder. With food not being part of the ticket price in low-cost flights, air travellers are busy stocking up on food at airport restaurants and cafes, before boarding their flight.







Sugar prices to ease further as output to exceed 16 MT: Pawar

Economic Times

Food and Agriculture Minister Sharad Pawar today said the country's sugar production is likely to surpass the earlier estimate of 16 million tonnes (MT) this season, which would help ease its prices.





Retail Trends



Price hike may not kill your appetite for electronic stuff

Daily News & Analysis

A 2% hike in excise duty, rolled back to 10% from 8, will make home electronics and gadgets a bit more expensive, but not enough to keep the shoppers away. But retailers maintain that the hike, a part of the partial rollback of stimulus measures, will lead to a marginal price hike.







Rajan Mittal takes over as FICCI chief

Times of India

Rajan Bharti Mittal, the Vice-Chairman and Managing Director of Bharti Enterprises, a diversified group dominant in telecom, insurance and retail, took over as the President of industry chamber FICCI. Mittal, 50, succeeds Harsh Pati Singhania, the Managing Director of JK Paper.





Jewellery prices to go up

Hindu Business Line

The hike in gold customs duty from Rs 200 per 10 grams to Rs 300 will increase retail prices of jewellery marginally - by Rs 10 per gram. Mr Bijou Kurien, President and Chief Executive, Lifestyle, Reliance Retail, agreed. He said that when people were already paying around Rs 1,600 per gram, another Rs 10 per gram would not make a big difference.





Retail Insight



'Changes in GST could create complete re-engineering opportunities'

Feb 9 2010, IndiaRetailNews.com

Geodis is Europe's fourth biggest logistics operator, a Group of global dimension, delivering added value logistics solutions for part or all of the supply chain. Present in 120 countries with a workforce of 26,500, the Group comprises core business divisions along with a cross-divisional entity - Geodis Global Solutions - which acts as a lead logistics provider in all sectors of activity. IndiaRetailNews.com caught up with Mathieu Renard Biron, Regional VP Asia Pacific, Rene Bach Larsen, MD India and Rajiv Singh, Global Account Manager recently in Mumbai.