Retail insight as on 27th July 2010

July 27, 2010

News for the Retail industry

Previous Issues

At a Glance  Vishal lenders likely to support Future Group's proposal Lifestyle likely to post profit after 10 years of ops Shoppers Stop opens store at Bengaluru Brand Zara now in India, promises affordable prices The Republic wins creative duties for Welspun Retail Interview of Mr Mehul Choksi, MD, Gitanjali Group Ashapura Apparels to focus on markets abroad Kraft seeks manufacturing allies in India Barista Lavazza ties up with LiveMedia The pull of the mill in Lower Parel India tops global consumer confidence in Q2 2010 Why shopkeepers and small traders are nervous Retail 2020: Going Beyond Retail   News: Apparel, Specialty, CDIT ...  Vishal lenders likely to support Future Group's proposal Economic Times Lenders to Vishal Retail (VRL) are likely to support a debt restructuring proposal from Kishore Biyani's Future Group, disregarding a rival offer from private equity firm TPG. Officials of banks with exposure to the debt-laden retail company will meet this week to compare the two proposals, according to people familiar with the situation. They emphasised that no final decision had been taken. Lifestyle likely to post profit after 10 years of ops Economic Times Lifestyle International, the Indian unit of billionaire Micky Jagtiani's $3.2 billion Landmark Group, is on course to post its first profit in more than 10 years of operations, a senior official said. "Lifestyle has been profitable for a while, but our other formats were in investment mode. This year, for the first time, we will achieve profitability at a group level," said Kabir Lumba, Managing Director. Shoppers Stop opens store at Bengaluru India Infoline.com Shoppers Stop Ltd has opened its Shoppers Stop store at Kormangala, Bengaluru. With the opening of this store, the company has now 31 Shoppers Stop stores under its operation. The company has also opened its 'Mothercare' store at Shopper's Stop Kormangala, Bengaluru. With this, the company has now 27 'Mothercare' stores, with seven stores on standalone and 20 stores on shop in shop basis. Brand Zara now in India, promises affordable prices Money Control Through the opening weekend, there were long queues outside its trial rooms as women jostled to try out clothes. According to industry sources (Zara itself is famously reticent about sharing numbers), it had sales of close to Rs. 1.25 crore in the first weekend in Delhi and nearly the same in its Mumbai store. Delhi's Select Citywalk mall recorded 40 percent more footfalls than it usually does and Mumbai's Palladium mall recorded close to 30% higher footfalls. "Their opening has been far beyond expectations," says Govind Shrikhande, chief executive of department store chain, Shoppers Stop. He credits the brand with opening up the premium women's wear market in an unexpected way The Republic wins creative duties for Welspun Retail afaqs! Welspun Retail, India's largest chain of home d cor, has awarded its creative mandate to The Republic, after a multi-agency pitch. The Republic will handle creative duties for the brands of Welspun Retail, namely Welhome and Spaces Home & Beyond. While Welhome is a value-for-money brand; Spaces Home & Beyond is a premium brand. Interview of Mr Mehul Choksi, MD, Gitanjali Group India Infoline.com Mehul Choksi, Chairman and Managing Director Gitanjali Group, one of the largest integrated Indian diamond and jewellery manufacturing and retailing companies, is today one of the best known entrepreneurs of the gems and jewellery industry in the country, and a well recognized name in the global industry as well. The Group is the pioneer of branded jewellery in India and has several well established brands in its arsenal. The list includes well-known and well established brands such as 'Nakshatra', 'Gili', 'Asmi', 'Sangini', 'D'Damas' Ashapura Apparels to focus on markets abroad FashionUnited India (blog) Ashapura Apparels has recently unveiled its new range of lounge wear and sportswear for men, women, boys and girls under the brand name Valentine. Ashapura Apparels has a presence in over 5,000 retail stores, which includes departmental stores and EBO's. The company is now focusing on increasing its network abroad. Ashapura is already present in UAE, Saudi Arabia and a few Gulf countries.   News: Food & Grocery, QSR ...  Kraft seeks manufacturing allies in India Economic Times Kraft Foods, the world's second largest foods company, is in talks with at least three biscuit makers including Cremica group and Surya Food & Agro for manufacturing alliance in India as the makers of Oreo biscuits looks to tap the country's Rs 6,500-crore organised biscuits market. Three officials close to Kraft Foods said that the US foods firm has initiated exploratory talks with different local manufacturers. Barista Lavazza ties up with LiveMedia domain-b.com Barista Coffee Company Limited announced a strategic alliance with digital destination media provider, LiveMedia. As per the tie-up, the 200 Barista Lavazza outlets across India will have LiveMedia screens on their premises. Rajan Mehta, CEO of LiveMedia, said, "LiveMedia will be developing content specific to the tastes of the youth, upwardly mobile people and young professionals who spend time at coffee shops.''   Retail Trends  The pull of the mill in Lower Parel Daily News & Analysis Talk about Mumbai and spontaneity. A former mill turns into a mall and a locality swiftly transforms. Look at it now. Lower Parel is the next best everything - from commercial centres to nightlife to shopping to residential. This transformation that began gradually in the nineties has only accelerated in the last five years. India tops global consumer confidence in Q2 2010 Moneycontrol.com Global consumer confidence cautiously edged up one index point to 93, in the second quarter, as confidence increases in booming Asian markets... India (129 index points), Indonesia and Vietnam (both 119 index points) were the most optimistic nations in Q2, while consumer confidence in Spain plummeted by 10 index points to its lowest level on record at 69 index points from 79 in Q1 of this year. Why shopkeepers and small traders are nervous Hindustan Times Rajendra Kumar, 42, closed his provision store in the bustling Ajmal Khan area of Delhi two years ago. Kumar said a Big Bazaar store offering goods at sharply lower prices at a shopping mall in West Delhi's Rajouri Garden reduced shoppers at his 100 square feet store to a trickle. The government might have to renegotiate through a groundswell of opposition from small traders, intermediaries and shopkeepers, before opening up the gates for foreign retail giants.   Retail Insight  Retail 2020: Going Beyond Retail Jones Lang LaSalle Forward wind to 2010 and the retail industry is still talking about the need to achieve the Holy Grail of sensational customer experiences and inspired in-store service. Does this talk to 25 years of laziness and lost opportunity or to an extreme difficulty in delivering these aspirations? Again, what can be said is that these last 10 years have been very favourable for occupiers and owners and the real need to invest in 'the icing on the cake' has not been there. By and large, products have sold themselves and in-store environments and customer care has just had to be par with benchmark, no better.