From the desk of Strategic Resources For any query, discussion or feedback, please contact Pavan Chandra, Head of Strategic Resources at pchandra@zenithoptimediaindia.com, +91-124-4195100. Office Address : 10th Floor, Vatika Tower, Block-B, Sector 54 Gurgaon -122002, Haryana, India.

Volume: X

January, 2008

 

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Retail

Share Prices

 

 

 

 

 

 

Sales and Market Share

 

 

 

Source: Euromonitor Report- Hypermarkets - India- June 2007

 

 

 

Source: Euromonitor Report- Supermarkets - India- June 2007

 

 

 

Trends, Marketing Initiatives and Others

 

 

 

59. Youth Driving Retail Sector Growth In India – January 08

Growth of Retail in India: A study by E&Y

According to a study by Ernst & Young titled YouSumerism, retail in India has emerged as one of the most dynamic and fast paced industries due to rising disposable incomes especially among the middle class, increasing consumer base in urban areas, credit availability, growing number of nuclear families, working women, easy accessibility and convenience, and a potentially strong rural consumer market. The rising purchasing power coupled with an increasing propensity to consume has led to the emergence of a new class of consumers who indulge in spending. According to Ernst & Young analysis, 50% of the population is less than 25 years old, which is favourable for driving the sector’s growth, as today’s youth have a tendency to consume and influence larger household decisions. Also, the spending pattern of Indian consumers is a great paradox to marketers and retailers due to disparity between increasing discretionary income (Rs 3,800 – Rs 7,000 per month) and the typical Indian need of ‘value for money’.

 

Source: The Economic Times

 

 

 

60. Indian Retail Biz To Reach $440bn In 2010 – January 12

Total retail’s contribution to the national GDP to increase to 22% by 2010

According to projections by the ASSOCHAM, the size of organised and unorganised retail industry in calendar year 2007 has been estimated at $300 billion. It is likely to grow up to $365 billion in 2008 and to $440 billion by 2010. The retail sector had a growth rate of 25-28% in 2007. The organised retail occupied a space of nearly 14 million sq. ft in calendar year 2007 and in 2008, it is expected to be 16 million sq. ft. In 2007-08 fiscal, the total retail’s contribution to the national GDP is estimated at 8-10%, which would increase to 22% by 2010.

 

Source: Fnbnews

 

 

 

61. Malls See Drop In Visitors On Weekdays – December 26

Mall developers witness lower conversion rates during weekdays

Even as the mall culture gains ground across the country, the conversion rates (CRs) remain low during weekdays. CR is a unit used by retailers and mall managers to find out what percentage of shoppers actually end up buying at a mall. With half the shopping being done during the weekends at malls in India, mall developers in the country are witnessing a 40% dip in conversion rate (CR) during the weekdays. The mall developers and anchor stores are contemplating the idea to start weekdays shopping offers to generate higher CRs during the weekdays.

 

Source: The Financial Express

 

 

 

62. Trent To Launch Value Format – December 21

Trent plans a value chain format focusing on apparel segment

Tata Group’s retail company Trent is planning to add a value chain format focusing on the apparel segment to its existing chain of lifestyle stores Westside, book and music store chain Landmark, hypermarkets chain Star Bazaar and consumer electronic store chain Croma. The company plans to launch apparel stores across 50 towns and will stock mostly private labels of menswear, kidswear and womenwear.

 

Source: The Economic Times

 

 

 

63. Vishal Concocts Restaurant Chain – January 02

Vishal Retail plans to establish a restaurant chain

Vishal Retail is planning to set up a restaurant chain, either of a standalone format or sit-down ones, within its convenios depending on the availability of real estate. The company is evaluating the proposal and is in the process of building up a team.

 

Source: DNA

 

 

 

64. Non-Apparel Retailing Next Stop For Megamart – January 05

Megamart to venture into non-apparel retailing

Arvind Mill-promoted retail chain Megamart plans to venture into non-apparel retailing by adding new categories such as luggage, footwear and lifestyle electronics. The retail chain is in talks with companies such as Mobile Next to set up shop-in-shops within its stores for a variety of lifestyle electronic products such as cameras, mobile phones and laptops. The company plans to have brands such as VIP and American Tourister in luggage section, and M&B, Reebok, and Nike in the footwear section.

 

Source: The Hindu Business Line

 

 

 

65. Essar Telecom Retail To Roll Out Smaller Store Format – January 08

Essar Telecom Retail to introduce a small store format for wider penetration

Essar Telecom Retail, an Essar group company that owns ‘The MobileStore’ chain of multi-service telecom outlets, plans to introduce a small store format. It intends to set up 250 of these stores by March 2009 in residential apartments, offices complexes and malls. These smaller format stores have been planned for wider penetration and will sell handset models, accessories, connections and music services.

 

Source: The Economic Times