Retail insight as on 16th June 2010

June 16, 2010

News for the Retail industry

Previous Issues

At a Glance

• World Cup sets ball rolling for sports merchandise in India
• 7 Pantaloon Retail promoters sell 25L DVR shares for Rs 71cr
• UK retailer Tesco sees higher sales on robust international business
• India, Brazil on hold, luxury targets Middle East
• Breguet eyes 50% sales growth by year-end
• Max launches first store in Ghaziabad
• Nalli opens its third store at Bangalore
• Nirula's to increase foothold
• No Child's Play: Global toymakers game for India
• Why Tesco looks to Bangalore for lateral thinking
• US Apparel Retailers Turn Their Gaze Beyond China

News: Apparel, Specialty, CDIT ...

World Cup sets ball rolling for sports merchandise in India Hindu Business Line Sports merchandise is set to get a big kick in India. With global sporting events like the FIFA World Cup driving up the frenzy among fans, the industry is hoping to notch a 20-45 per cent growth in the current year. Interestingly, the growth is happening both in the organised as well as unorganised category

7 Pantaloon Retail promoters sell 25L DVR shares for Rs 71cr Economic Times As per the bulk deal data available with the Bombay Stock Exchange, seven promoters, including Kishore Biyani and Sunil Biyani, sold a total of 25,37,442 differential voting rights (DVR) shares. When contacted, Pantaloon Retail's Managing Director Kishore Biyani said the transaction of shares was between the promoter entities.

UK retailer Tesco sees higher sales on robust international business Economic Times British retail major Tesco saw sales climb 8.2 per cent for the thirteen weeks ended May, 2010, helped by good growth in the US and Asia. Tesco, which expects to open its first cash-and-carry store in India by the end of the year, said international sales shot up 11.9 per cent during the same 13-week period.

India, Brazil on hold, luxury targets Middle East Economic Times Luxury groups discouraged by thickets of red tape and taxes are putting on ice ambitions to expand into India and Brazil and focusing instead on the Middle East, their No.2 priority after fast-growing China. Gulf countries represent a tiny pool of buyers compared to India and Brazil but they offer low tariffs, a friendly business environment, retail space and solid appetite for Western upmarket products, luxury executives say.

Breguet eyes 50% sales growth by year-end Business Standard Breguet, the watch brand from Swatch Group, is looking at a 50 per cent sales growth in India for the current calendar year. Currently, the company has appointed six retailers in India, including Kolkata, to sell its products. "We are looking to open exclusive outlets in India as well as appoint retailers in Hyderabad and Ahmedabad soon," Viguerie said. Breguet watches in India command a price range of Rs 3.5 lakh to Rs 2.5 crore.

Max launches first store in Ghaziabad Images Fashion Middle East based fashion brand Max, has launched its first store in Ghaziabad. Located at Metro Mahagun Mall, Vaishali; the new Max store promises to provide customers a one-stop shop for the latest fashion at affordable prices across apparel, footwear and accessories for men, women and kids in a truly delightful shopping environment

Nalli opens its third store at Bangalore TechWhack What makes the Nalli store at Jayanagar special, apart from its grand and exquisite collection of silks, is the fact that it is the replica of the first Nalli Chinnaswamy Chetty store at T.Nagar, Chennai. "The shelves of Nalli, Jayanagar, encompass the diverse colours and textures of India." says Mr. R.Sridaran, VP, Nalli Silks Bangalore

News: Food & Grocery, QSR ...

Nirula's to increase foothold indiaretailing.com Going ahead with its expansion plan, Nirula's has recently opened outlets in Mumbai, Indore and Mussoorie. "We would soon open more outlets in Mumbai, Bangalore, Jalandhar and Pathankot," said Samir Kuckreja, CEO and MD of Nirula's. The QSR chain currently operates 75 outlets in 16 cities and the company plans to take the count to 200 outlets by March 2011.

Retail Trends

No Child's Play: Global toymakers game for India Economic Times A handful of global toymakers such as Simba Toys, Fisher-Price and Hamleys have burst into the Indian market, putting together a well-oiled sales strategy to target a largely unorganised, but thriving industry. Hamleys launched its first store this April in Mumbai, one of the four stores that the British company has opened abroad, partnering Reliance Retail.

Why Tesco looks to Bangalore for lateral thinking Silicon.com The captive outsourced unit of global retailer Tesco has 4,000 employees in India, all located in Bangalore - a relatively small part of the chain's workforce, which counts 270,000 employees in the UK alone. However, Tesco's operations in India face constant demands from around the world. A store computer gone on the blink in Ireland? The helpdesk in Bangalore steps in. Payroll software in Turkey has bugs? Bangalore sorts it out. Long checkout lines at any of the 100 Tesco Fresh & Easy stores in the US? Bangalore fixes it by allocating more cashiers to the tills

US Apparel Retailers Turn Their Gaze Beyond China Wall Street Journal "We are looking to move production into lower-cost geographies, most notably Vietnam and India," Mike Devine, Coach's chief financial officer, said at a conference last week. The luxury-handbag retailer already produces goods in those countries, but plans to increase its presence in both of them

Retail Insight

Jumbo King: The Making of an Indian Fast-food Chain India Knowledge@Wharton You won't get much variety if you visit an outlet of Jumbo King, a fast-food chain that is expanding in western India. On offer are vada pavs (a potato-based patty in a bun), Pepsi and lassi. This is fast food Mumbai style. It won't cost you more than a dollar. (The basic vada pav costs just 17 cents and the most expensive 59 cents.) "I was inspired by McDonald's: Behind the Arches, says Dheeraj Gupta, founder and managing director of Jumbo King, referring to the John F. Love book about the world's largest fast-food chain. "But my target is the suburban train traveler."