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Volume: II

May 25, 2007

Retail

Share Prices

 

NSE share prices as on May 15, 2007

 

Sales and Market Share

 

199. Subhiksha Targets Rs 3,000 Cr Biz In FY08 – April 19

Subhiksha aims to achieve Rs 3,000 target in 2008

The Chennai-based food, grocery and pharmacy discount retail chain, Subhiksha registered 53.84% growth in the FY 2006-‘07, compared to the previous fiscal. The retail chain registered Rs 1,000 crore sales turnover, and is planning Rs 3,000 crore sales turnover in FY 2007-‘08. It currently has 700 retail stores across the country and within the next coming two or three months it plans to open 300 new retail stores at an investment of Rs 150 crore. Of these, 100 will be opened in Maharashtra, and the rest in South and North India.

 

Source: Business Standard

 

 

Trends, Marketing Initiatives and Others

 

200. 285 More Malls Seen Coming Up By 2010 – May 10

285 new malls to come up by 2010

According to the Retailers Association of India (RAI), by 2010, 285 more malls are expected to come up in India, taking the total number to 400.  The RAI also estimated that nearly 45% of the proposed malls will come up in the northern part of the country, and the total space requirement is estimated at 65 million sq ft. The construction cost is estimated to be Rs 14,300 to 16,250 crores. Another notable trend is that, nearly 10% of the country’s total malls, in the coming three years, will be specialty malls. According to RAI's estimate, the National Capital Region (NCR) will witness the highest mall development, followed by Mumbai, Pune, Bangalore, Kolkata and Chennai.

 

Source: The Hindu Business Line

 

 

201. UK Home Improvement Co B&Q Plans India Foray – May 07

Europe’s largest home improvement retailer ‘B&Q’ contemplates India entry

Following the footsteps of many big foreign retailers, UK’s home improvement retailer B&Q is planning to enter the $12-billion Indian retail market. Part of the UK-based retail major Kingfisher Group, the company is looking for either the JV or franchisee route to enter the Indian market. B&Q is the number one do-it-yourself retailer in Europe and the third-largest in the world, with over 700 stores worldwide. It sells home products ranging from bathroom accessories and carpets to paints & appliances.

 

Source: The Economic Times

 

 

202. Metro Cash & Carry To Open Academy For Kiranawalahs – May 07

Metro Cash & Carry to open an academy for Kiranawalahs

Metro Cash & Carry, a leader in the international wholesale business, is likely to open an academy to train small retailers or kiranawalahs in India. Gerardo Monzillo, Deputy Managing Director of Metro Cash & Carry India, said, “We have trained small retailers in countries like Turkey to compete against big retailers. We could train small retailers here in India also. We equip the small Mom and Pop shop owners with the know-how on maintaining accounts and managing merchandise”. The wholesale major will be establishing stores at four locations including West Bengal, Andhra Pradesh and Mumbai. The Kolkata and Mumbai centres will be opened in 2007.

 

Source: Financial Express

 

 

203. Carrefour Puts India Plan On Hold – May 05

Carrefour delays its plan to enter India

Following the rising political opposition to the entry of trans-national retailers in the country Carrefour, the world's second largest retailer, has indefinitely postponed its plans to enter India. Carrefour's India Head Gerard Freiszmuth said, "We will not be in a position to announce any concrete India entry plan till policy issues on FDI in retail are made clear".

 

Source: Food And Beverages

 

 

204. Mom-&-pop Keeping Big Retail On Toes – May 05

Traditional kirana stores offer discounts to counter big retailers

Traditional kirana stores are partnering with corporates, such as Hindustan Levers Ltd., Procter & Gamble and others, to give discounts on MRP to consumers to counter the aggressive big retailers. Kirana stores are now operating on high volume and low margin, building partnerships with corporate and learning category management, effective merchandising and promotion to remain competitive. 

 

Source: The Economic Times

 

 

205. Samsung Plans Tie-up With Large Retailers – May 05

Samsung eyes growth by partnering with large retailers

South Korean consumer electronics company Samsung is tying up with large retailers, such as Reliance Digital, Croma, Future Group, Metro Cash & Carry and Hypercity, to increase its top-line growth. The company plans to earn 10 to 12% of its turnover from these retail outlets by 2010.  In calendar year 2007, it expects large-format retailing to contribute 3 to 4% of its turnover.

 

Source: The Economic Times

 

 

206. Reliance Fresh Set To Add Groceries To Product Mix – May 02

Reliance to offer groceries in Reliance Fresh stores

Reliance Fresh, which initially started its operation in Hyderabad with 27 stores, will soon change its format. After starting off as a fruit and vegetable store, it will sell groceries as well. Reliance Fresh will not store vegetables and fruits prone to great wastage. The move is also important because the overall sales of fruit and vegetable have declined at Reliance Fresh. Thus, adding groceries to the store is a conscious effort to increase the average bill value at Reliance Fresh, which has stagnated in the recent months at approximately Rs 120 to 130.

 

Source: The Economic Times

 

 

207. AV Birla Retail To Take Off In June – May 01

AV Birla Retail to start in June

The first retail store of Aditya Birla Retail, a retail venture from the Rs 40,000-crore AV Birla Group, is likely to start from Pune by June 2007. In 2006, the group announced an investment of close to $1 billion (Rs 4,100 crore) in its retail venture, and also that it would concentrate on formats such as supermarkets, hypermarkets and apparel. The company also picked up a controlling stake in Trinethra for nearly Rs 150 crore, giving it a footprint of 172 stores.

 

Source: The Economic Times

 

 

208. art d`inox Plans Store Chain – April 30

Retail stores by art d’inox

By opening high-end retail outlets, backed by supply from a new manufacturing unit, art d'inox, the lifestyle product division of Jindal Stainless Ltd, is planning to double its turnover in the coming two years. The company plans to open its new production unit in Uttarakhand, and several stores in southern Indian states, where there is already a large unorganised steel utensil market. It also plans to open 25 retail outlets across the country in the coming three years.

 

Source: Business Standard

 

 

209. Spinach Targets 1,500 Stores By 2011, Invest Rs 1,500 Cr – April 29

Spinach aims to open 1500 stores by 2011

Spinach, the food shopping store at Mumbai promoted by Wadhawan Food Retail, plans to expand its business in other parts of the country. The company is likely to invest Rs 1,500 crore to reach a total of 1,500 stores by 2011 across Delhi, Kolkata and Maharashtra. It currently has 23 food stores in Mumbai.

 

Source: The Press Trust of India Limited

 

 

210. Retail Foray Delayed – April 28

Bharti, Wal- Mart joint venture gets delayed

The first store of the retail joint venture between Bharti and Wal-Mart, the first store, planned to open in August 2007, will now be opened by March 2008, according to Sunil Bharti Mittal, Chairperson and M.D., Bharti Airtel Ltd.

 

Source: The Hindu Business Line

 

 

211. Reliance Retail In Property-Buying Spree In Metros – April 28

Reliance Retail Ltd buys properties for Reliance Retail and Reliance Digital

Reliance Retail Ltd (RRL) has started buying and converting retail stores of the major cities, mainly belonging to Gujaratis, into ‘Reliance Retail’ and ‘Reliance Digital’ stores. The company also plans to establish almost 150 to 200 retail outlets in Mumbai, including its hypermarket and consumer durable stores.

 

Source: Financial Express

 

 

212. Reliance Unveils Reliance Digital Logo In Red And Blue – April 25

New red and blue logo for Reliance Digital

On April 24, Reliance Digital, the retail venture of the Mukesh Ambani-led Reliance Industries, which will deal in consumer durables and IT products, introduced its logo and brand identity at a press conference in Delhi. The new logo, which is in blue and red, is similar to the colours used by Reliance ADAG. According to company sources, the colour red signifies freshness, strength and life, while blue is a favourite with technology companies.

 

Source: Agency Faqs

 

 

213. Mushrooming ‘Discount Malls’ To Spur Retail Biz – April 23

Discount Malls grow in number

The $300-billion Indian retail market is witnessing the growth of discount malls. The top retailers are developing malls to sell premium brands at prices 30 to 40% cheaper than the MRP in regional areas. Approximately 50 discount malls are expected to come up in the coming two years across the country, positioned in the middle-to-premium end of the market. Companies, such as Royal Palms and Akruti Nirman, in Mumbai are also coming up with discounted malls.

 

Source: Financial Express

 

 

214. Reliance Uses Kirana Spice For ‘Fresh’ Surge – April 23

Reliance partners with kirana shop owners to open Reliance Fresh stores

Reliance Retail has created a business model of bringing local kirana storeowners into its own network by using their property on lease and signing a no-competition pact with them.  By using this strategy, the company, which is introducing fruits, vegetables and grocery outlets called Reliance Fresh, aims to reach out to big neighbourhood markets. The main motive is to acquire space on lease in neighbourhood markets from kirana shop owners by paying them up to four-times the existing rentals. However, Reliance Retail bars kirana traders from doing a similar business.

 

Source: Financial Express

 

 

215. Big Bazaar Is Getting Bigger – April 21

Big Bazaar to grow

The Future Group, owner of the retail chain, has planned to launch 'Big Bazaar Supercentres', which will provide postal services, health & beauty zones and entertainment sections to its existing services. The group will launch six such centres in the coming two months at an investment of Rs 96 crore. Each supercentre will involve an investment of Rs 15 to 16 crores. The company is also targeting to enter Tier II and III cities with Big Bazaar, and plans to take its number from the current 50 to 300 by 2010.

 

Source: Food and Beverages

 

 

216. ITDC, Aldeasa Form Joint Venture – April 21

ITDC to partner with Aldeasa

The state-owned India Tourism Development Corporation (ITDC) is in talks with Spanish company Aldeasa, for a 50:50 joint venture, to establish a duty-free retail chain at airports in India and overseas. Official sources have reported that the proposed ITDC-Aldeasa venture will bid for duty-free retail opportunities in India and select business opportunities outside India, especially in the South Asian Association for Regional Cooperation (SAARC) region and countries with a large Indian presence, besides souvenir shops at Indian heritage sites and museums.

 

Source: Business Standard

 

 

217. Dubai's Emaar, India's MGF Buy Singapore's RSH – April 19

Emaar and MGF acquire majority stake in Singapore’s RSH

Dubai-based Emaar Properties and Indian real estate developer MGF Group have acquired a majority stake in Singapore-based retailer RSH Ltd. A joint venture of Emaar and MGF, Golden Ace Pte. Ltd., bought 61.3% in RSH for S$227 million ($150 million), taking its stake to 87.3%.   

 

Source: Yahoo News

 

 

218. Armani Spots A Suitor In DLF Group – April 18

Armani looks for partners

Global designer brand Giorgio Armani is in talks with real estate major DLF Group among others, as it seeks a partner in the Indian market. According to industry sources, Armani’s business development team has had talks with DLF, as it looks at establishing high-visibility stores in Mumbai and Delhi, initially. Although DLF has confirmed that it was in talks with international luxury brands for their retail division, inviting them to establish shops, though they did not divulge any other details.

 

Source: The Economic Times

 

 

219. French Retailer Geant Sets Up Mumbai Store – April 17

French retailer enters Mumbai

After Marks & Spencer and Shoprite, the French hypermarket giant Geant has entered the Indian retail market. Geant, the world’s fifth-largest supermarket chain and second largest in France after Carrefour, has brought its Le Marche chain of supermarkets to India. Le Marche, which operates stores in West Asia, has opened an 80,000 sq. ft hypermarket (discount) store in Doodhwala mall at Oshiwara in Andheri. The group has approximately 113 hypermarkets worldwide, which stock all kinds of items under one roof – from common household items and food, to computers and home theatre systems. According to industry sources, a Mumbai-based business family is likely to partner with Le Marche in India.         

 

Source: Hindustan Times
 

Product Launches

 

220. Big Apple To Open 100 Retail Stores By August – May 13

To cater to the urban consumers, Big Apple, the Indian version of the popular US retail chain 7-Eleven, plans to open 100 convenience stores in the national capital and surrounding areas by August 2007.

 

 

221. Pantaloon To Launch KB's Wholesale Markets, Invest Rs 400 Cr – April 30

To cater to the rural market, the Kishore Biyani (KB)-promoted Pantaloon Retail is coming up with KB's Wholesale Markets to supply items, including fresh fruits and vegetables.

 

 

222. Jumbo To Open Store In Noida – April 25

By the end of May 2007, Dubai-based $1.5-billon Jumbo Group will open its first consumer electronics store at Great India place in Noida. The company plans to open 10 more stores by end-2007.

 

 

223. Reliance Retail Enters Durables Business – April 25

On April 24, 2007, Reliance Retail entered consumer durable retailing with the launch of Reliance Digital store at Shipra Mall, Ghaziabad. It will initially sell over 150 international and domestic consumer durable brands.

 

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