Latest News and Events from the Indian Retail Sector

Weekly Retail News from India

General Plans and Information
Big players - plans and investments
International
Regional Trends
HR News
Sector specific

General Plans and Information

Retail spies on the loose
With increasing competition, prices have become one of the key decision making factors that pull in customers, leading to retailers visiting rival stores to keep a tab on prices. Key items that prices are checked for on a regular basis include, essential commodities such as rice, lentils, oil and sugar.

According to S Raghunandan, an independent retail consultant and former HyperCITY CEO, “Every retail chain would have people who scout around for prices and offers in other stores. The consumers often know of the best prices and retailers can’t afford to be more expensive than the other stores in the catchments.”
Monday, March 12, 2007
Source: The Economic Times

India and China on top of global retailers agenda
International retail majors are keen on investing in India and China, more so than in other locations, according to a new retail study, the 2007 Global Powers of Retailing brought out by Deloitte Touche Tohmatsu. According to the report, “Slow growth in many mature markets and not-to-be-missed opportunities in emerging markets - particularly China, India and Russia - are powerful driving forces.”

The study indicates that even though the global retail market has a lot of risks, the robust economic growth in countries such as India, China and Russia make for an attractive atmosphere for retailers. Another factor that is making these countries more attractive is their market-oriented governments, which have led to significant increases in spending power of consumers.
Monday, March 12, 2007
Source: The Economic Times

Retailers trying out newer ways to offer discounted prices
Retailers are concerned about the reaction to deals and discounts that they offer consumers, with so much information in the media and comparison shopping, consumers often don’t get an actually discount. The recent expose about Tesco doubling its prices one week and then offering a 50% discount a few days later has caused discontent among consumers. The problem could be that consumers expect discounts regardless of what price they are paying. According to ACNielsen, “Consumers are hooked on promotions,” he says. “On average, about 80% of UK shoppers are looking for price promotions — that’s the highest in Europe. Low prices are now expected.”
Saturday, March 17, 2007
Source: The Economic Times

Big players - plans and investments

RIL opts out of Super Bazar
Reliance Industries has decided to opt out of reviving cooperative store Super Bazaar, mainly due to the government’s reluctance to hand over full management control. Reliance had earlier made the winning bid of Rs. 2.28 billion to revive Super Bazar.
Thursday, March 15, 2007
Source: The Economic Times

Godrej Group set to enter retail sector
The Godrej Group is the latest of companies to announce plans to enter the retail sector and is looking for international retailers to tie up with for its venture. One of the retailers that the company is holding talks with is Makro, which is owned by the Metro Group of Germany. Godrej is a Rs. 60 billion consumer goods company that has interests in a variety of sectors such as agri-business, appliances, furniture and properties.
Friday, March 16, 2007
Source: The Economic Times

International

Reliance interested in buying stake in Carrefour
News sources report that RIL is interested in taking its retail venture to the international scale and is looking to acquire stake in French retailer Carrefour. RIL reportedly has $14 billion to create an international business leveraging on its farm-to-fork supply chain project. Other companies that RIL has been talking to are Sainsbury and Marks & Spencer in the UK and Kmart and Target in the US.

The Haley family has 13% stake in the French retailer and have reportedly asked two banks to find buyers for its share of the company. The balance shares of the company are owned by the public with 84% of the shares and 2.2% with its employees.
Wednesday, March 14, 2007
Source: The Economic Times, Business Standard

Starbucks makes plans for India launch
While the Seattle based coffee chain is getting ready to open outlets in India by the end of the year, it has become embroiled in a trademark row with an Indian company by the name of Starstrucks for violation of its name. The Starstrucks chain is being launched by Shahnaz Hussain, a well-known beauty expert who wants to sell coffee and chocolates with an herbal theme in a Hollywood like atmosphere.

According to a spokesperson at Starbucks, "The company is optimistic that we will be able to open our first store and offer the unique Starbucks Experience in India with a yet-to-be announced joint venture partner by the end of 2007 in either New Delhi or Mumbai."
Wednesday, March 14, 2007
Source: DNA Money

Reliance Retail holding talks with international luxury brands
Reliance Retail is looking to tie up with several luxury brands and has held talks with companies such as Armani, Tommy Hilfiger, Prada, Gucci, Calvin Klein, Moet Hennessy Louis Vuitton and Ralph Lauren. Industry sources report that, "Reliance Retail is talking to a large number of global luxury brands to tie up for its luxury retail venture as part of its retail initiative."

Reliance is planning to retail these high-end brands in two formats, hypermarkets and specialty luxury stores. The company’s first hypermarket will be opening in July this year, with a total of 700 such stores being planned that will be opened in the next three years.
Wednesday, March 14, 2007
Source: The Hindu Business Line

Carrefour denies holding talks with Reliance
French retailer Carrefour and Reliance have reportedly been holding talks for a retail venture, although Carrefour has denied it was negotiating with Reliance. The Indian retailer is however saying that it is holding talks with Carrefour for a retail venture on a global scale and not only for India. The Press Trust of India reports that Reliance was interested in acquiring a stake in the French retailer. On the other hand, a Carrefour spokesperson said that "…it has had no contact with this group (Reliance) and no negotiations are under way."
Thursday, March 15, 2007
Source: The Economic Times

Kmart seeks to enter Indian retail market
One of the leading retailers of the US, Kmart Corporation is reportedly gearing up to enter India’s organized retail market in the form of cash-and-carry stores. The company is also planning to tie up with an Indian retail partner for franchise-based stores. Executives from Kmart reportedly met officials from the Department of Industrial Policy and Promotion to discuss plans for entry to the Indian market.
Friday, March 16, 2007
Source: The Economic Times

Regional Trends

Future Group plans expansion in West Bengal
The Future Group will be expanding in West Bengal and has signed several properties in Howrah, Siliguri, Bardhaman, Kharagpur, Darjeeling and Asansol to take up 2.9 million sq ft of space. The total investment by the company for West Bengal is more than Rs. 5 billion. According to Sandeep Marwah, Pantaloon Retail India regional head (eastern zone), “West Bengal plays a critical role in our overall scheme of growth. We began our retail journey from here and hence, the state will always occupy an important place in our growth plans.”
Saturday, March 17, 2007
Source: The Economic Times

HR News

Pantaloon Retail makes major organizational changes
Pantaloon Retail made some major changes within its organization, by creating five verticals, retail, incubation and innovation, products, JV and partnerships and zonal strategy.

In the retail vertical: Rakesh Biyani will be the retail CEO and will take care of Big Bazaar, Central malls, Food Bazaar and Pantaloon, the entire retail vertical. Rajan Malhotra, former Big Bazaar category head, will be the new CEO of Big Bazaar, Vishnu Prasad, former South Zone head, will be CEO of Central, Sadashiv Nayak, former Western Zone head, will be CEO of Food Bazaar and Sanjeev Aggarwal, former president of marketing for Pantaloon, will be CEO of Pantaloon retail chain. In the incubations and innovations vertical: Damodar Mall will be the new CEO
Wednesday, March 14, 2007
Source: Business Standard

Yum! India’s Arvind Mediratta reportedly joining Wal-Mart
Arvind Mediratta, the Chief Marketing Officer of Yum! India has reportedly put in his papers and will be joining Wal-Mart. He will be reporting to Raj Jain, the President and CEO elect of Wal-Mart and will join in April 2007.
Friday, March 16, 2007
Source: Kamcity News

Bharti and Reliance enter no-poaching pact
Bharti Enterprises and Reliance Retail have reportedly signed a no-poaching agreement, which will be valid for one year and will ensure that retail professionals will not switch jobs and leave their companies in the lurch. Reliance who has hired several of Bharti’s executives from its FieldFresh agri-business venture is supposed to have started the poaching war. Industry estimates suggest that there is a severe shortage of senior professionals in the retail industry.
Friday, March 16, 2007
Source: DNA Money

Sector specific

Apparel & Footwear

Raymond looking to acquire women’s wear segment company
The Rs. 25 billion textiles and apparel company is reportedly looking to acquire a women’s wear segment company. According to Pradeep Bhandari, Group President of Raymond, “The women’s wear segment is growing and we have a designer-wear brand in this category since the last couple of years. I don’t know of acquisition any acquisition plans now.”

The company has been increasing its retail outlets from 400 to 480 in the current financial year and to 600 in the next financial year, increasing its retail space by 30% in the next two years. The major expansion will take place in tier II and tier III cities.
Wednesday, March 14, 2007
Source: DNA Money

Benetton to open 3-4 Sisley stores
Benetton India announced that it would be launching 3-4 additional stores for its Sisley brand by the end of the year. Currently, there are two Sisley stores in Delhi. According to Gagan Singh, “Benetton India plans to gradually spread out its Sisley brand across the country, beginning with metros like Mumbai and Bangalore. We will launch three to four Sisley stores by 2007-end.”
Thursday, March 15, 2007
Source: Business Standard

Landmark to launch standalone stores for Kappa
The Landmark Group’s LMG Brands launched the seventh Kappa store in Bangalore this week. Kappa is available at all Lifestyle stores at present and will also be sold at standalone stores located in high streets in the next one year. The Kappa brand is targeted at the 18-25 age group and offers a collection between fashion and sportswear.
Thursday, March 15, 2007
Source: The Hindu Business Line

Home Furnishings

Maspar in talks with Reliance Retail
Home furnishings company Maspar is reportedly in talks with Reliance Retail to distribute its products at the company’s high-end retail formats. Maspar has 6 stores at present, including it’s most recent store opening in Mumbai and focuses on exporting home furnishing products to the US and the UK to companies like Marks & Spencer, Ikea and Waverly. The company plans to open two additional stores in Delhi in April and one store in Pune. Other cities that will get Maspar stores this year are Chandigarh, Noida, Hyderabad and Chennai.
Sunday, March 11, 2007
Source: The Economic Times

FMCG, Food & Grocery

Food franchisees on a roll
Specialized food and entertainment chains are heading to India, to offer not just dining but also an entire merchandising line of memorabilia. Manchester United is one of the many that has shown interest in opening restaurants here, as has London’s famous Ministry of Sound that recently opened its first restaurant in Delhi. Local companies are not far behind, with Percept Holdings planning to launch Bollywood Café in Mumbai.
Sunday, March 11, 2007
Source: The Economic Times

Dabur plans to launch 400 retail outlets
Dabur announced that it will be setting up a chain of 300-400 retail stores focusing on the health and beauty segment in the next few years. Dabur India’s retail outlets will be based on international outlets such as Boots and Walgreens and would sell pharmaceutical and OTC products along with health foods, confectionary items, personal and baby care products. The company will be hiring foreign expats to guide the project and has earmarked Rs. 2 billion for its retail venture.
Monday, March 12, 2007
Source: The Economic Times