Retail insight as on 16th April 2010

April 16, 2010News for the Retail industry










Previous Issues



News: Apparel, Specialty, CDIT ...



Foreign PE firms could get nod to invest in single-brand retail

Financial Express

The government will soon allow foreign private equity firms to invest in single-brand retail firms within the overall foreign direct investment (FDI) cap of 51%. That will help single brand foreign retailers like Louis Vuitton, DKNY and Versace, who have set up shop in India, to sell some of their stakes to foreign PE firms to raise funds. Reliance Brands, part of Reliance Retail, has also got approval for floating a single-brand retail JV with UK’s Marks & Spencer.





ORRA Diamonds draws up Rs 75 cr retail expansion plan

Daily News & Analysis

ORRA Diamonds has drawn up a Rs 75 crore capex plan for its retail expansion plans over the next three years period, a top company official said. "We will set up another 16 new stores over the next three years period," ORRA’s CEO, Vijay Jain said. The company already has 29 stores in 19 cities and is adding four new stores at Baroda, Lucknow, Jallandhar and Amritsar in the current year, Jain said.





Trent raises Rs 1 bn via debentures

Myiris.com

Trent, part of the Tata group, operating a chain of retail stores in India today announced that it has raised Rs 1 billion via issuing and allotting secured redeemable non-convertible debentures on a private placement basis. The debentures are redeemable on maturity after a period of 5 years at face value with premium payable on redemption as per the terms of the information memorandum.





Raymond to take franchisee route to open 100 stores

Financial Express

The Rs 1,200-crore Raymond Ltd is planning to open 100 retail stores through its franchisee network in tier-IV and V cities like Bijapur, Mandya and Bellary in Karnataka, and Ahmednagar and Bhandara in Maharashtra, among others, in the calendar year 2010. This is more than the 76 franchise stores the company opened in 2009-10 with an investment of around Rs 25 crore.







Maishaa debuts in Mumbai

indiaretailing.com

In a franchisee tie-up, Maishaa,the luxury home fashion brand from the house of A K Retail Inc,has entered Mumbai with its boutique at Surprise Home Linen. Spread over an area of 1,500 sq.ft, this is fourth store of the brand in the country. Maishaa has also announceda plan to open 25 more stores by March 2011.





Italian kidswear brand Chicco comes calling

mydigitalfc.com

Italian baby products brand, Chicco, has opened its first flagship store in Delhi’s Select Citywalk mall. The brand plans eight exclusive stores in all major cities."Chicco is in talks with many departmental stores and also baby products shops to open shop-in-shops across India," said Vineeth Nair, CEO, Artsana India.





News: Food & Grocery, QSR ...





Starbucks stirs entry brew

Calcutta Telegraph

Global coffee chain Starbucks has renewed its efforts to enter India though it is yet to make up its mind on a local partner. Sources said the company was looking for local master franchises to open outlets and was exploring the real estate markets in Calcutta, Delhi and Mumbai to set up a unit.





Taco Bell a hit in India

Detroit Free Press

Taco Bell is off to a flying start in India, with its first unit, in Bangalore, averaging more than 2,000 customers a day. That’s great news for owner Yum Brands, which also operates Pizza Hut and KFC. Yum intends to open 1,000 outlets in India by 2015. International expansion is a key focus for chain restaurants, as saturation and a stagnant economy have caused a fast-food slowdown in the U.S.





Retail Trends



Industry leaders prepare for World Retail Congress

Retailmoves

More than 1,000 retail leaders will be heading to Berlin next week for the 2010 World Retail Congress and the Oracle World Retail Awards. Categories being judged include Retailer of the Year...Multimarket Retailer of the Year...As for the big accolade, Retailer of the Year, that will go to one of Amazon, Fast Retailing/Uniqlo, H&M, Pantaloon Retail, the TJK Companies and Wal-Mart.





Column: Retail’s resurgence

Financial Express

The Indian retail industry is showing signs of recovery and players are focusing on operational efficiency, growth and collaboration with foreign players. The industry is also seeing a paradigm shift on the direct tax, indirect tax and regulatory fronts that have the potential to define the evolution of the sector.





Retail Insight



The Power of Loyalty: Understanding Loyalty Programs in Retail

EY

When it comes to CRM and effective consumer loyalty, India remains largely inexperienced as a market, and most retailers are still trying to discover the best techniques to understand and retain customers. Although loyalty cards have emerged as shortcuts to success in building customer loyalty, they remain only part of a much broader CRM practice.