Retail insight as on 2nd August 2010

August 2, 2010

News for the Retail industry

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At a Glance  Biyani sees a Rs 8,500-cr NBFC giant Arvind Q1 net doubles on improved margins S Kumars targets Rs 500 crore sales from new apparel Goenka Diamonds expects 40% growth in bottom-line in Q2 Shopper's Stop turnaround continues Noel Tata Takes Over As Tata International MD DLF to sell 92 per cent stake in retail arm DLF Brands for Rs 92 crore Retailers body pitches for FDI in non-food segment Future Group ropes in local suppliers for Ektaa Swensen's to strengthen its presence in India Banks can make organised retail inclusive 'Made in India' label transforms lives Research finds change in rural consumer patterns Enabling Revolutionary Cross-Channel Trends in Retail   News: Apparel, Specialty, CDIT ...  Biyani sees a Rs 8,500-cr NBFC giant Business Standard Future Capital Holdings (FCH), the financial services arm of Kishore Biyani's Future Group, started with a big-bang promise of becoming a financial powerhouse, but had lost the plot along the way. But the retail king is not one to give up easily. He has brought in V Vaidyanathan, executive head of ICICI Prudential, who will steer FCH's fortunes as its vice-chairman and managing director from August 10. The current VC, Sameer Sain, resigned from his post on Sunday Arvind Q1 net doubles on improved margins Commodity Online India's leading denim maker and exporter, Arvind Limited (BOM:500101) seen its profits doubling for the first quarter ending June 2010. The net profits for the period rose 108% to Rs.19 crore for the said period up from Rs.9 crore reported in the corresponding period last year. The company, in a statement issued on Thursday, July 29, 2010 informed that the growth in the profits was primarily attributed to the improvement in its operating profit margin as a result of rationalization of its product-mix in a buoyant scenario for textile industry in India as well as globally. S Kumars targets Rs 500 crore sales from new apparel Economic Times S Kumars Nationwide Limited, a leading textile and apparel company targets to achieve sales of Rs 500 crore in the next three to four years from its newly launched apparel brand World Player, said Johnny John, COO. "We are basically targeting youth in 18 to 35 years age group from semi urban and rural areas. Very soon we will go for pan-India launch," John said during the formal launch of the brand. Goenka Diamonds expects 40% growth in bottom-line in Q2 Economic Times Banking on the growing domestic demand for rough diamonds and jewellery, Mumbai-based Goenka Diamond and Jewels (GDJ) is eyeing a bottomline growth of 35-40 per cent at Rs 175 crore this quarter (Q2). The company's net profit in Q1 FY11 was up 10 per cent at Rs eight crore, whereas its net income remained constant at Rs 88 crore as against the year-ago period. Shopper's Stop turnaround continues Moneylife Personal Finance Magazine "Our same store sales growth is 21% quarter-on-quarter basis, which is a big factor that contributed to growth in net profit. We reported marginal growth by 50 basis points; operating cost is down by 100 basis points; lease rental is down by 160 basis points; depreciation is down by 30 basis points and interest cost is down by 90 basis points on a quarter-on-quarter basis. All these factors constituted an increase in earnings before interest, taxes, depreciation and amortisation (EBITDA) figures from Rs15 crore to Rs25 crore and 297% jump in net profit," said Govind Shrikhande, customer care associate and managing director, Shopper's Stop Ltd. Noel Tata Takes Over As Tata International MD india-server.com Noel Tata got a bigger role on Friday as he was assigned as MD of Tata International. The young businessman was in the retail business for a decade and helped the segment grow by more than 10-fold. DLF to sell 92 per cent stake in retail arm DLF Brands for Rs 92 crore Economic Times India's largest realty firm, DLF, today said it will sell a 92 per cent stake in its wholly-owned retail subsidiary, DLF Brands, to a promoter group company for Rs 92 crore as part of its strategy to exit from non-core businesses and only focus on real estate. DLF Brands, which is engaged in the business of retailing various luxury and lifestyle brands, has paid up equity capital of Rs 8 crore. Retailers body pitches for FDI in non-food segment Financial Express The Retailers Association of India (RAI) will write to the government asking it to allow foreign direct investment (FDI) in non-food retail. According to the body, the move poses no concerns as it does with the food retail. FDI in non-food retail would mean the entry of large lifestyle and fashion brands into the country. The body will write to the government by August-end.   News: Food & Grocery, QSR ...  Future Group ropes in local suppliers for Ektaa mydigitalfc.com Future Group has tied up with rice millers across the country to source products for its commodity staples brand Ektaa. The brand, primarily catering to food products, will give customers more options to choose from their culture specific staples and food items. Ektaa is positioned to address the diversity that arises with changing food preferences every 100 km. Swensen's to strengthen its presence in India Franchiseindia.com Swensen's, a USA based chain of ice-cream restaurants plan to open 80 new outlets in India in the next five years. The company entered India through Devyani International Ltd (DIL) early this year.   Retail Trends  Banks can make organised retail inclusive  Business Line The debate over the desirability of opening up the country's organised retail trade to foreign direct investment (FDI) stands heightened with the Government recently issuing a discussion paper through the Department of Industrial Policy and Promotion, a clear fallout of Prime Minister Dr Manmohan Singh's call for a debate earlier this year on the opening up of the retail sector. At that time the PM pointed out to the vast difference between farm gate and consumer prices. 'Made in India' label transforms lives Deccan Herald What is common between moderately-priced apparel available at Walmart stores across the US and merchandise in expensive standalone Gap clothing stores? India. Or more specifically the 'Made in India' label. A significant portion of the apparel business is handled by the 1,000 plus manufacturing units in Bangalore, where close to 4,00,000 workers, predominantly women, are involved in the manufacturing process, right from fabric grading and cutting to stitching, finishing and packaging. Leading labels such as Tommy Hilfiger, Marks & Spencer, Gap, H&M, Matalan, Mothercare and George employ Karnataka's largest unorganised workforce. Research finds change in rural consumer patterns Economic Times Indian consumers' earning, saving and consumption patterns are rapidly changing. So much so that a recent report by the Centre for Macro Consumer Research (CMCR) of the National Council of Applied Economic Research (NCAER) predicts that by 2015, incomes of more than 42% rural households will shift from agriculture to non-farm sources like construction, retail, trading et al.   Retail Insight  Enabling Revolutionary Cross-Channel Trends in Retail Verizon The world of retail marketing just got a lot more personal. Consumers are embracing new technologies and expecting their retailers to take advantage of those innovations to create a more individualized shopping experience. Retailers have many more creative channels available to customize their interaction with customers, and new tools keep emerging. Though technology has not always been a retailer's friend, new advances have reduced the burden both in skilled resources and cost. These advances allow retailers to quickly respond to changing customer expectations and offer creative encounters that can improve brand loyalty and bottom-line sales. These new trends increase the channels through which retailers can reach customers. But as retailers begin to embrace these new channels, they must ensure consistency across products, service, and messaging.