Retail insight on January 4th 2010

January 4, 2010

News for the retail industry

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News

Pantaloon transfers value retail biz to Future Value Retail Economic Times The company's committee of directors at a meeting held on December 31 approved transfer of value retail business of the company to Future Value Retail--a wholly-owned subsidiary.

Global tie-ups, private labels to be buzzwords in retail this year Business Standard Tie-ups with international retailers and brands, emphasis on profitable growth and increased focus on private labels are set to be key trends in the Indian retail sector in 2010, say retailers and consultants Business Standard spoke to.

Croma to step up pace of store opening Business Standard Tata's electronic and consumer durables retail chain - Croma - plans to step up the pace of store openings in 2010 to take advantage of increasing consumer spends on the back of higher economic growth, according to a top company executive.

Reliance Retail to open 45 books & music stores by Dec 2014 Economic Times Mukesh Ambani-led Reliance Retail Ltd plans to open a total of 45 stores of its books and music retailing business - Reliance TimeOut - across India, over the next three to five years. The multi-format retailer, which operates seven stores of TimeOut, said it wants to tap India's Rs 3,500-crore book retailing industry, of which only 40 per cent is organised.

Arvind Mills to tap kiranas for rural reach Economic Times Arvind Mills is trying to do in shirts what Cavincare's Chik did for shampoos. Make the product ubiquitous and affordable. You may soon get to pick up a shirt bit from a pan shop, or a petrol pump, across the thousands of villages, which lie at the bottom of the growing Indian pyramid. The world's third largest maker of denim fabrics and supplier to Levi Strauss and Calvin Klein plans to make its shirt bits available in thousands of shops across the country.

Oliver's March Financial Express The s.Oliver store opened in south Delhi's upscale Promenade Mall last week. The German brand's fourth exclusive store in India also flags off an ambitious expansion plan - to be numero uno in the premium fashion, apparel, lifestyle category by 2015.

IHPL to increase coffee joints to 36 by 2010-end mydigitalfc.com Ideal Hospitality Private Ltd (IHPL) plans to increase its number of coffee joints to 36 by December this year, a top company official said. Aromas, the Australian coffee retail chain had tied-up with Mumbai-based IHPL last year to enter the Indian and Southeast Asian markets. At present, there are two outlets of Aromas in Mumbai and one in Pune.

CLB asks Nilgiris Dairy Farm to hold allotment of rights shares Economic Times The Company Law Board in Chennai has asked Nilgiris Dairy Farm not to allot shares to those participating in the company's ongoing rights issue till its further orders, and postponed hearings on the dispute to February 5. Actis, Nilgiris' majority owner, said it is going ahead with the transfer of funds and that the company's growth is unlikely to be affected

Retail Trends

Durables sales on New Year high Hindu Business Line "New Year Sale last year was almost in free fall. Whereas this year, beginning October 2009, demand picked up and we expect it to peak during this sale," says Mr B.A. Kothandarama Setty, Chairman of the South-based durables retail chain Viveks.

Rise in franchising in small-format retail Daily News & Analysis Franchise India Holding Ltd, a counselling and partnering firm for the franchise industry, estimates a rise in the adoption of franchise model by small-format retail players in the country, since the slowdown last year. As per its estimates, 85% of all small-format retail business in India now operates on the franchise model.

Retailers mull new strategies for small stores Business Standard Large retailers are trying to make their small food and grocery stores viable by trying out new ideas. While some like Reliance Retail are converting most of these stores into a deep-discount value format, RPG Group's Spencer's is looking at the franchising route.

Mall mania fades in Mumbai Daily News & Analysis The economic slowdown of 2008-09 has had its impact on the retail segment in Mumbai. Over the last one year, Mumbai-based developers have converted over 2.5 million sq ft of planned mall space into residential and commercial complexes.

Cafes see good sales in the north Daily News & Analysis According to industry estimates, coffee consumption in north India has gone up by 0.84% during 2005-2008, followed by a 0.72% increase in the west and a marginal 0.17% rise in the east. Sanjay Coutinho, COO of Italian coffee chain Barista Lavazza, said "It is difficult to experiment with drinking patterns in the south. But other areas hold great potential and a sizeable market." He added that 80% of Barista Lavazza's new rollout will be in non-traditional areas.

Global brands to transform domestic retail sector mydigitalfc.com Organised retail is new to India and government policy does not allow foreign investment in multi-brand retail, although it does permit 51 per cent FDI in the single brand segment. This has not gone down too well with various global players. "Indian players like the Future Group and Reliance Retail are quite strong. So there is possibility of foreign players tying up with domestic firms," says Anil Rajpal, vice president (retail) of Technopak.

Companies adopt wierd names to catch consumer attention Economic Times Not everybody thinks Mahindra Group's retail venture has the best brand name, because it does not appeal to one's curiosity. Well, the new hype among marketers perpetually engaged in a fight to win the customer's attention is having a whacky, if not outright shocking, name.

Retail Insight

Supplier and Retailer Views on EPC/RFID Technology for Direct Store Delivery (DSD) GCI Merchandise that flows to consumers through direct store delivery (DSD) is managed differently than merchandise that passes through the more commonly understood warehouse delivery supply chain (from consumer goods supplier to retailer warehouse/distribution center to retailer store). DSD operations have their own unique processes and business challenges, which sometimes tend to get overlooked in analysis and discourse over EPC/RFID use in the retail and consumer goods industries. This Global Commerce Initiative (GCI) report and its underlying research were produced to examine the role and value of Electronic Product Code (EPC)-based radio frequency identification (RFID) technology in the DSD supply chain.