Reliance Retail opens 9 ‘Fresh’ stores in NCR; targets 1 trillion in revenues

Reliance Retail juggernaut moved into National Capital region (NCR) today with the opening of nine ‘Fresh’ stores in Noida, Greater Noida, Gurgaon, Ghaziabad and Faridabad. NCR is one of the economically fastest growing geographical regions of the country. Within the next three months, Reliance wants to take the tally of these ‘Fresh’ stores to 100 in the Delhi- NCR region. Reliance is believed to have invested about Rs. 1,100 crore in this region.

Having launched the first cluster of its ‘Fresh’ stores on 3rd November, 2006, today’s launch takes the pan-India tally of Reliance ‘Fresh’ stores to 49, spread across Andhra Pradesh (21), Jaipur (7), Chennai (12), and NCR (9). Three of these stores in Andhra and 12 stores in Chennai were launched during the previous week. Thus, 24 ‘Fresh’ stores have been launched within a short span of one week only.

Reliance expects to launch 1,000 stores before the year end. Occupying an aggregate retail
space of about 1,10,00 square feet, these neighbourhood convenience format stores occupy an average retail space of over 2,200 square feet and offer quality horticulture, grocery and dairy products at competitive prices. Apart from catering to house hold customers, Reliance also makes supplies of these items at wholesale prices to push-cart vendors and small kirana merchants through its wholesale format “Rangers Farm.”

Having already bought 74 nos. land plots for about Rs. 2,000 crore, Reliance has so far invested about Rs. 3,000 crore or about 10% of the first phase planned outlay of Rs. 25, 000 to 30,000 crore on its retail initiative.

According to Reliance Retail, President and CEO (Operations and Strategy), Raghu Pillai, Reliance would open bigger format stores like hypermarkets, supermarkets and speciality stores during the April-June quarter.

Reliance Retail, he said, would earn Rs 1 trillion (Rs. 1 lakh crore) in revenues in the next five years. This excludes additional revenues from the “Rangers Farm” wholesale business operations. Reliance’s experiment with this wholesale format in Hyderabad has been working fine, added Pillai.

Shopper’s Stop Q3 grows 29% in revenues, 27% in operating profits

Shoppers’ Stop, the K Raheja owned, second biggest listed retailer in the country, has announced increase of 29% in Q3 gross revenues, up 59 crore from Rs. 204 crore to 263 crore, and of 16% in Q3 net profits, up 2 crore, from Rs. 12 crore to Rs. 14 crore, according to the quarterly financial results announced by the company. Q3 Operating Profit (Profit before interest, depreciation and tax) at Rs. 25 crore was 27% higher than Rs. 19.6 crore recorded in the corresponding period last year.

Q3 has been significant as it has in line with expectations has contributed 30% of projected annual sales, this year.

While, the margin of 31.5%, for the first nine months, is higher by 1.2%, the company has more importantly been able to contain shrinkage below 0.5%, lower than the international standards.

While, Shoppers’ Stop opened a new store in Lucknow in the third quarter, it has also added the Mothercare, Crossword and F&B format stores during the period.

Shopper’s Stop at the quarter end had a total of 87 stores/ doors comprising: Shoppers’ Stop (20), HomeStop (2), Mothercare (11), Crossword (41) and F&B outlets (13).

Pantaloon adds 8 lakh sq ft in Q3, sales jump by 60%

While, Q3 sales of Pantaloon Retail (India), the Kishore Biyani owned, biggest listed retailing company of India, jumped 60 per cent from Rs. 472 crore to Rs. 752 crore, the net profit increased from 18.6 crore to Rs. 43.9 crore against the same quarter of the previous year. However, net profit was inclusive of exceptional income of Rs. 18 crore received against diveastment of a part stake in one of its subsidiaries to a private equity fund.

While Pantaloon has added 8 lakh sq feet of retail space in Q3, it plans to add larger than this space in Q4.

What is of significance, however, is the fact that unlike most of its competitors, who have yet to make a beginning, Pantaloon has signed up a total retail space of about 27 million square feet.

While 8 million square feet of retail space is expected to go on stream by December, 2007, the entire 27 million square feet of space it has lined up is likely to become operational, within the next 3 to 4 years, by 2010-11.

Reliance juggernaut gaining momentum

The Rs. 25,000 crore, Reliance Retail juggernaut has begun gaining momentum.

Reliance, which began its journey in retail with the opening of a cluster of Reliance ’Fresh’  neighbourhood convenience stores in the state capital cities of Hyderabad and Jaipur, has opened 12 Fresh stores in Chennai on 24th January and has now begun moving to tier-II cities with the launch of seven stores in Andhra Pradesh on the 28th and the launch of nine stores today in the fast growing National Capital Region around Delhi.

The new Reliance ‘Fresh’ stores launched in Andhra Pradesh comprise four stores in Vijaywada and three in Guntur. Occupying an aggregate space of 17,000 sq. ft. each of the store on an average offers a retail space of over 2,300 sq.ft.

The nine stores in the NCR will be located in Gaziabad (4), Greater Noida (2), Noida (1), Faridabad (1) and Gurgaon (1).  These stores will occupy a retail space each of between 2,500 and 3,000 sq. ft. These stores are a part of the plan to open 22 stores in this region by the end of March of 2007. Reliance has set up two cold storage facilities at Kundli and Azadpur in Delhi of 1.75 lakh sq ft and 75,000 sq ft. respectively to service the needs of these stores.

All the new stores like other ‘Fresh’ stores will offer fresh fruits, vegetables, flowers, grocery and dairy products apart from a few staples under the Reliance’s private label of ‘Select.’ All the merchandise at these stores besides offering good quality will also be competitively priced.

All the new stores, as per the Reliance’s policy of according place of pride to its customers will be opened by the customers who first enter these stores.

Reliance is yet to begin its larger format speciality stores and hypermarkets. Three of such stores will be set up in East Delhi’s Star City Mall and Ghaziabad’s Shipra . and Jaipuria Mall, will follow in due course.

3 days of Maha Savings on something Vs. 365 days of savings on everything

This had to happen one day. And, well this has happened, sooner than expected. Retail sector like its FMCG counterpart, has begun witnessing media wars, albeit on a smaller scale.

We have earlier reported about the 3 day “Maha Savings” offer in which all 43 Big Bazaar format of hypermarket stores, owned by Pantaloon Retail, across the country, in an annual exercise, have offered extra discounts to its customers, particularly on aparrel and home appliances, between 26th and 28th January, 2007.

While, Big Bazaar’s offer is widely advertised and a lot of ‘word of mouth’ publicity has also been associated with the event, Subhiksha, the Chennai-based, discount retail chain, with over 500 convenience format stores in different parts of the country, has counterd this Big Bazaar offer in a directly hitting ad-campaign with a tagline “3 days of savings on something versus 365 days of savings on everything.”

The emphasis here is clearly on 3 days versus 365 days and something versus every thing. It may be recalled that Subhiksha besides offering 10% discount on all the FMCG products, including Medicines, also offers a widely publicised ‘every day low price’ scheme. The campaign apart from being published in the print media is currently being beamed across TV channels including the matches during the ongoing one day cricket series between India and West Indies.

This appears to be just the beginning of what could be the most exciting retail media wars between the warring retailing rivals.

Ambani turf wars may extend to retail

Organised retail, if buzz in the pink media is to be believed, may be gearing itself up to witness a bitter fights between Ambani siblings.

After signing of the partnership agreement between Wal-Mart, the US-based, biggest retailerof the world and India’s biggest private telecom player Bharti, it seems that that Anil Ambani, the younger sibling of Mukesh Ambani, may be preparing himself for a bloody fight in the unchartered territory of organised retail.

It is no secret that the retail sector is getting hotter by the day, especially after the October, 2006, announcement of the aforesaid Bharti- Wal-Mart, tie-up.

Earlier, according to knowledgeable circles, Anil Ambani was working on a plan to enter the business of retailing pharmaceutical products by leveraging on the pan-India network of chemists and druggists, who are members of the All India Chemists Association. However, not only that plan was shelved, but in the meanwhile Anil Ambani got occupied with the much bigger ambition of becoming the country’s biggest telecom player by acquiring Hutch, the second biggest GSM mobile player, owned by Hong Kong based Hutchison Whampa.

However, when a number of parties have jumped into the arena to acquire Hutch, Anil Ambani seems to be working on the possibility of garnering a much bigger share of the retail pie by seeking to join hands with Carrefour, the France based, world’s second biggest retailer. The size and ambitions of this tie-up could be as big or even bigger as that of his elder brother Mukesh Ambani owned Reliance Retail.

While, the non-compete agreement between the two brothers, it may be noted, does not preclude either of them from taking up the retail business, Carrefour is scouting for partners for its India foray after ealier having called off negotiations with the Dubai-based Landmark group for setting up over 200 hypermarket and other store formats in the country. The UK-based Tesco, the world’s third biggest retailer, after failed negotiations with Bhartis, is said to be currently in talks with Tatas.

We had earlier talked about Munjals (Hero Honda group)  turning out to be a dark horse in the race for a tie-up with Carrefour, however, it now appears that apart from Anil Ambani, Carrefour may also be exploring possibilities of a tie-up with FMCG major Godrej and Bombay Dyeing owner Nusli Wadia.

Big Bazaars gearing up for 3 days of “Maha Savings Offer”

Do you recall the Republic Day, last year, when Police had to rushed in to restore order following a stampede caused by a large number of customers who had come to take advantage of the “Maha Savings” Offer. Big Bazaar is the hypermarket retail format of the Kishore Biyani owned India’s biggest retailer Pantaloon. In Mumbai, even medical help had to be sought for customers who waiting, since early morning, for their turn to buy the goods, were exhausted.

Republic Day is the day when the company makes its “Maha Savings” offer in all its “Big Bazaar” stores across the country. The offer, in view of the unmanageable rush last year, was extended for a period of three days between 26th and 28th January. The offer branded as ‘Sabse Saste Teen Din’ puts on offer merchandise across categories at at extremely economical rates. These concessions are made possible with the active support of several apparel, appliances and other manufacturers.

24 Big Bazaar outlets, last year, sold merchandise worth Rs. 43 crore during the three day periods. This year, there 43 Big Bazaars together with Food Bazaars across the country will be making this offer. While, it is not possible to estimate the business this year, company officials, expect to attract at least one million customers during the period.

In light of the previous experience, company officials are not taking any chances and are making adequate arrangements for extra cash counters as well as are providing extra space for easier movement of the customers visiting the stores.

News Source: Hindu Business Line

The business of Brands

What are the basic ingredients that make a brand tick and help it become a Superbrand?

Well, a combination of elements are responsible for making a Brand, what it is. Following is a list of important elements.

• The Name: The name by which a Company or its products are known.
• The Logo: The symbol which represents a Brand.
• The Company: The corporate entity of a Brand
• The Image: What a Brand has come to represent.
• The Customers: Those whom a Brand serves.
• The Product and Services: What a Brand offers in a market place.
• The Promise: What a Brand stands for- its vision, mission, goals, and objectives.

– Based on the information provided in the 2006 Annual Report of PNC Limited, Mumbai.

Titan to retail prescription eyewear

Titan, the biggest Indian watch and jewellery retailer, which also sells “Fastrack” range of sunglasses and frames has decided to enter the prescription eyewear retail market.

Mr. Bhaskar Bhat, Managing Director, Titan Industries, disclosed this while talking on the sidelines of a seminar on advertising organised by the Advertising Club Madras, in Chennai.

Initial introduction of the prescription eyewear products will be done from 3rd March, 2007 on a pilot basis in a few of the company’s “World of Titan” stores, he added. Glasses, frames and lenses for a new yet to be named brand will be made by Titan on its own without seeking help of any outside partner.

The company has notified the stock exchanges of its proposal to start the new business.

Carrefour seeking Indian partner?

Jose Luis Duran, Chairman and CEO, Carrefour, the France-based, US$ 177 billion, second biggest retailer of the world, is currently on a visit to India. He is meeting high ranking government officials including Kamal Nath, the Union Minister of Commerce & Industries and senior secretaries, to understand the government’s present policy framework and future roadmap on retail.

Carrefour Chairman during his visit is also likely to gain a hands-on understanding of the growing retail business in India by meeting local business leaders. Carrefour (pronounced: Cahr-uh-foor, meaning ‘cross roads’ in French), like the world’s biggest Wal-Mart, which recently tied-up with telecom giant Bharti, will have to seek an Indian partner for its India foray for front end operations as it is a multi brand retailer and present Indian policy framework on retail does not allow majority FDI stake in such format. Present policy guidelines, it may be noted,  allow FDI of up to 100% in wholesale format (cash and carry) and up to 51% in single brand retail format.

Speculations are, therefore, rife that during this visit, he would explore possibilities of doing business jointly with major business leaders including Kumar Mangalam Birla, Chairman of the A V Birla group. To put records straight, it should, however, be said that Mr. Kumar Mangalam Birla, in several media interviews earlier, has clarified that his group would like to go it alone without seeking any foreign partners. It may be recalled that the AVB group, early this month, had unveiled its plans to foray into the retail business and as a first step had announced acquisition of  Hyderabad-based, food and grocery supermarket retail chain, ‘Trinethra’ and ‘Fabmall’ – which has over 172 retail stores spread across southern parts of the country.

Mukesh Ambani owned Reliance Retail, which is another major business group that is foraying into retail has also decided to go it alone and not seek any foreign partners. Reliance, which has started rolling out its food and horticulture retail stores in convenience and cash & carry wholesale formats, in Hyderabad and Jaipur, as a part of its Rs. 25,000 crore, multi format, multi verticles, pan India retail initiative, like Birlas has also recently acquired Ahmedabad-based, food and grocery retail chain ‘Adani Supermarket,’ which has 54 stores spread across Gujarat.

This leaves Tatas, among other major business houses, to tie-up with Carrefour. Tata group has two companies, Trent (Westside, Landmark and Star Bazaar) and Tata Infiniti (Croma) operating in the retail business. Tatas, however, are thought to be in advance stage of negotiations with the UK-based, world’s third biggest retailer- Tesco.

ITC, another big business house, as reported earlier, is also betting big on retail. However, ITC is mainly focussed on agri products as its long standing linkages with farmers are not limited to retailing alone.

Among other major early entrants in the field, Kishore Biyani owned Pantaloon and Raheja owned Shoppers’ Stop are already having a number of brand, product, or format specific tie-ups with foreign retailers of all shapes and sizes.

The dark horse, which could match Carrefour’s India ambitions, may well be the Munjal (Hero Honda) Group, which despite having announced its retail ambitions, has yet to unveil its retail plans. Munjals have a large network spread across the country as it has been a major player in the two wheelers market -both manual and motorised, for several decades. The group, which is the world’s biggest bicycle and the second biggest mobike manufacturer as good understanding the Indian consumer, both urban and rural.

It may be recalled that as reported earlier,Carrefour was earlier in talks with Landmark, the Dubai based retail group, to form a joint venture for its retail foray into India. However, these talks with Landmark, which already has a presence in the Indian market through it Lifestyle and Max retail chains, were recently called off with mutual consent.

Foreign retail chains wooing Subhiksha?

Whether it is scorching pace of growth, expansion in clusters, or talk of takeover, Subhiksha always remains in the news! This time, it is about foreign retailers wooing this Chennai-based, decade old, retail chain, with 500 plus stores across the country, for a possible pan-India tie-up.

All big retailers, who enjoy the advantage of having moved into organised retail in early days, are prime takeover or partnership candidates. Trinethra and Adani supermarket chains, it may be recalled, were recently bought over by Birlas and Ambanis from their respective owners.

If an Economic Times story based on market gossip (22nd January, 2007), is to be believed, R Subramanian promoted, Subhiksha, is being hotly pursued by foreign retail chains with partnership proposals. According to the story, existing chains are not content with investments alone from their suitors, but they also want a fair share of the cake by demanding an equal partnership in the business particularly when the way has been paved by none other than the world’s biggest Wal-Mart.

Government policies also favour this as the policy makers, despite strident protests from the left, have found nothing wrong with the recently concluded Bharti’s alliance with Wal-Mart.

Foreign retail chains may also not be unwilling to share a part of control and profits with home grown retailers, who beside bringing low cost infrastructure on the table, offer much needed understanding of the local geography and customer in a market which is not only multi-ethnic and multi-lingual, but also continent like in size.

No wonder, even Wal-Mart, despite its financial and technological might, had to recently wthdraw from South Korea and Germany.

ITC plans big on retail; to open 140 Chaupal ‘Fresh’ & over 50 ‘Sagar’ stores

Having launched three Chaupal ‘Fresh’ stores in Chandigarh, Pune and Hyderabad, tobacco, food, packaging and hospitality major ITC is gearing up to launch the fourth store in Kolkata. ITC has chalked out plans to set up 140 of such fruits and vegetables stores in 54 towns, across the country. These stores are slated to come up within three to four years. ITC’s ‘Fresh’ format, in contrast to most others, is a combination of both the wholesale and the retail formats, where these stores remain open between 4 and 7 AM for wholesale and thereafter for retail.

ITC’s engagement with farmers began a few years ago with the opening of its first Chaupal Sagar hypermarket in Sehore, a small town near Bhopal in Madhya Pradesh. Today, while there are 12 Chaupal Sagar stores in operation, 11 more are under construction. All of these stores are located in the rural areas of Madhya Pradesh, Uttar Pradesh and Maharashtra. In the coming months, ITC has plans to set up 40 more of such stores. The concept of these stores is slightly different from hypermarkets.

Chaupal Sagar stores, besides selling home products but also sell farm inputs like fertilisers, pesticides and implements required by the farmers. In addition to selling products, these stores also procure farm produce from the farmers. They also disseminate information on commodity prices, crop patterns, and farming methods to these farmers. Even, crop demos and cold chain support are made available, where needed.

In short, Chaupal Sagar stores have become meeting points for farmers not only for transacting commerce but also for collecting and exchanging useful information.

News Source: The Hindu Business Line

Nirula’s ride retail boom; launch two new formats

With the recent launch of a Nirula’s “Express” restaurants at Delhi’s domestic airport and MMX Mall at Mohan Nagar as well as Shoprix Mall at Noida, the home grown, North Indian fast food retail chain has decided to ride the retail and real estate boom.

Nirula’s “Express” counters, admeasuring about 200 sq ft, to be located in high traffic areas including airports, railway stations, malls and metro stations, would among others offer ‘take away’ food like sandwiches, pastries, ice creams, soft drinks, other beverages, apart from gift items and consumer products.

Reliance’s new Ranger Farm stores in 3 AP towns

‘Ranger Farm,’ the cash & carry format of Mukesh Ambani owned Reliance Retail, is launching at least three new stores in Vijayawada, Guntur and Visakhapatnam in Andhra Pradesh. These stores are being launched as a precursor to the opening of Reliance Fresh stores in these towns in February, 2007, according to a news report in DNA Money.

Reliance had earlier launched this format of stores prior to the opening of 22 Reliance Fresh stores in Hyderabad and Jaipur.

The format is in the same mould as Metro AG’s Cash & Carry stores in Bangalore, Kolkata and Hyderabad as well as ITC’s Chaupal Fresh stores in Hyderabad, Pune and Chadigarh.

These stores, which open at an unearthly hour of 2 AM in the morning, supply fresh fruits, vegetables and food in bulk to small shop keepers including push cart vendors. These stores, which have not been publicised much, remain open for business until 11 AM. ITC’s Chaupal stores remain open for bulk business between 4 AM and 7 AM and for consumer business, thereafter.
The initial response, according to the report, to this format has been very encouraging in Hyderabad with more than 4,000 push cart vendors and small shopkeepers picking up food and vegetables in bulk.

Retail push helps Raymond’s Q3 profits zoom up

Raymond’s net profit for the quarter ended December 2006, against corresponding quarter in the previous year, on the back of retail push, zoomed up by 26% even though in sales for comparable products was only 13%.

“The company has identified retailing as its thrust area for future growth in the branded textiles and apparel space,” said Gautam Hari Singhania, chairman and managing director of Raymond, while announcing the results. “The company has embarked on an expansion plan for increasing its retail penetration and also entered into strategic partnerships with leading international players to enter new product categories,” he added.

During the quarter, the company signed a 50:50 joint venture with an Italian company, Grotto, for retailing of premium casual wear and accessories under the GAS brand.As a part of Raymond’s strategy to expand its retail network across the country and the middle east, the company launched its flagship store in Mumbai. Raymond’s is also increasing exclusive brand outlets for various brands in its portfolio.

“Retail revolution is on us:” Vikas Garg

FDI in retail will not lead to unemployment and closure of small shops, asserted Vikas Garg, Senior Consultant, Technopak Advisors, while addressing the ‘National Level Retail Summit 2007′ organised by Jain Group of Institutions owned, MATS School of Business & Information Technology in Bangalore.”The retail revolution is on us, and regardless of FDI the revolution will happen. Even, FDI when allowed in retail, will also not result in unemployment and closure of small shops,” added Garg.

Shoppers are now wanting the cheapest, biggest and the quickest products/services from their retailers. They are moving towards the ‘est’ model, said Vipul Parekh, Vice-President, Merchandising, Indiaplaza.in (erstwhile Fabmall.com). He was commenting on the changing behaviour the Indian customers.

Welingkar’s PG Programme in Retail Management in association with Pantaloon

Welingkar Institute of Management (Mumbai and Bangalore), believes in paying special attention to develop the right attitude and outlook in its students by organising special programs and using unique methods – to not only develop sharp business minds but also a sound and complete personality. Singapore-based Asia Inc, has ranked Welingkar 8th amongst all South Asian business schools.

Welingkar is offering a two years’ post graduate programme in retail management in association with Pantaloon Retail (India). The basic details of the programme are given below alongwith contact particulars. Those interested, should directly contact the institute or visit their website for further information and clarification.

Course Title: Post Graduate Program in Retail Management
Course Duration: 2 Years (Full Time)
Course Rationale: Experts have long been foreseeing a tidal wave approaching the retail sector – a prophecy that has come true even before the stipulated times.Retail in India is on a cusp of transformation. Organized retailing as a professional service-oriented set-up, is a recent phenomenon in India but is growing at a tremendous pace with a potential of creating over 2 million new (direct) jobs within the next six years, assuming an 8 to 10 per cent share of organized retailing in the total retail business.

Welingkar’s 1 year Diploma in Retail Management

Welingkar Institute of Management, Mumba, which has been ranked 8th amongst all South Asian business schools by Singapore-based Asia Inc, is offering a one year Diploma in Retail Management. The basic details of the programme are given below alongwith contact particulars. Those interested, should directly contact the institute or visit their website for further information and clarification.

Course Title: Diploma in Retail Management (DRM)
Course Duration: One Year
Course Objective: To introduce participants to various aspects of professional retailing.

Welingkar’s Certificate Programme in Retail Management

Welingkar Institute of Management, which has earned a name for itself in the area of Retail Management is offering an entry level Certificate Programme in Retail Management, the basic details of which are given below. Those aspiring to join the programme should directly contact the institute. Contact particulars are also given below.

Course Title: Certificate Program in Retailing.
Duration: Three Months.

Course Objective: To help initiate career in the field of retailing.
For whom it is meant?: Aspirants who want to enter the world of retailing through front line sales and operations.
Special Feature: To stimulate vocational nature, which incorporates contemporary industry practices and hands on experience. This is achieved by the use of ‘realistic’ retail cases, visiting industry speakers and active projects.

Kishore Biyani conferred ‘international retailer of the year’ award

It was a a proud moment for nascent, organised retail industry of India to have been recognised when one of its visionary leaders Kishore Biyani, CEO & MD, Pantaloon Retail, was conferred the International Retailer of the Year award by the National Retail Federation (NRF) at the 96th annual convention of in New York, on 16th January, 2007.

This honour, which is the first for any Indian, is especially significant because the US National Retail Federation (NRF) is the world’s largest retail trade association, which represents combined annual members’ turnover of US$ 4.5 trillion.

Explaining the reasons influencing the Federation’s choice this year, Karen Knobloch, Senior VP, NRF said: Pantaloon is interesting because it is very agile; focused on giving what customers want and offers whatever format is needed, from food to electronics to high fashion apparel. And they really are a good example to all the other retailers who come here to learn.

“I think what we have to learn from the US is how consumption can drive our economic growth,” said Pantaloon Retail MD Kishore Biyani adding that the US market is all about thinking big in terms of number of stores, technology and consumerism.

This award has been conferred when the world’s biggest American retailers like “Wal-Mart” have already stitched up necessary agreements, while others like “Starbucks” and “Costco Wholesale” are waiting in wings to make their foray into the world’s second most populous as well as the world’s fastest growing market.

Pantaloon joins hands with Staples to become leading office products’ supplier

Pantaloon Retail (India) has announced signing of an agreement to set up a JV between the US-based, world`s largest office products company, Staples and Future Office- its 100% subsidiary business unit.

The Boston -based USD 16.1 billion, Staples, which invented the office superstore concept in 1986, is the world’s largest office products company, has presence in 21 countries through a network of 1,800 stores and 69,000 employees. Staples’ range of office products include supplies, technology, furniture, and business services.

While, the JV agreement will allow Staples to enter the office products’ market in India, it will allow Pantaloon Retail to benefit from the industry expertise and sourcing network of Staples. In a related development, Future Office had recently announced acquisition of the operations and management of Officedge, an online B2B office products company providing contract delivery services to corporate customers across the country.

“The office products business in India presents tremendous opportunities for growth. Through our partnership with Staples, the industry leader, we can become the office products provider of choice for businesses throughout India,” said Pantaloon Retail MD and CEO Kishore Biyani, commenting on the deal.

Staples Future Office would serve businesses of all sizes through delivery as well as cash-and-carry locations, offering a wide range of office products from core office supplies, printers as well as computers. Future Office would expand its delivery operations in all major cities of the country, including Delhi, Mumbai, Bangalore, Hyderabad, Chennai, Kolkata, Pune, Ahmedabad, Indore and Chandigarh.

The deal is a part of the group’s strategy to become the leading provider of office products in India.

Biyani silent on ‘Starbucks’; denies ‘Burger King’ tie-up

Kishore Biyani, CEO and MD, Pantaloon Retail, a part of the Future Group, while talking to media persons at the NRF annual convention in New York, where he was conferred the International Retailer of the Year award, said that there was absolutely no truth in media speculation about his group’s imminent tie-up with the the world’s second biggest fast food restaurant retail chain Burger King.”Our job is to keep on meeting people. But I don’t think there’s anything happening that side,” he said.
While, he refused to comment on reports about a possible tie-up with Starbucks- the world’s biggest coffee shop chain in India, he expected that the first shop of the chain would open in India by June, 2007.

Retail News Roundup

Retail push to reverse farm income slideAmul to launch pro-biotic ice cream ranges

Punjab farmers’ incomes are expected to get a big push with the arrival of the corporate sector in retail.

Pantaloon hunts for European partners to sign joint ventures

    The company will set up joint ventures with three European firms in menswear, premium suits wear and kidswear categories.

Trinethra launches FabCity in Mysore

Trinethra Super Retail Ltd launched FabCity, its hypermarket brand, in Mysore.

Rajesh Exports launches more `Laabh’ outlets    The Company announces the simultaneous launch of 30 `Laabh’ outlets in 23 cities across the country.

Durable majors in tussle with Reliance over trade margin

Consumer durables’ majors like LG, Samsung, and Godrej are getting a taste of how organised retail, in return for high volumes, can squeeze their margins adversely, according to a news report in the Indian Express.

While, Reliance Retail, which is going to roll out its retail outlets in 684 cities across the country, in the next 18 to 24 months, is asking for a retail margin of 30% (markup in excess of 40%), these durable brands are not willing to part with more than 13 to 14%, in line with what they have been offering to the trade all these years.

These durable majors have confirmed that no deal has so far been stuck with Reliance on this account.

Durables’ market is approximately worth Rs. 30,000 crore in India, with the share of organised retail being around 2 to 3%. However, this market share is expected to jump to about 12% within a year.

While, Croma, the Tata Infiniti owned, pure durables’ retailer has jus begun setting shop from Mumbai, other small organised retail players operating in the market include Vijay Sales in Mumbai and Vivek’s in the South.

Catalogue retailer Argos mulling expansion with Rahejas in India

UK-based, catalogue retailer, Argos, one of the Britain’s most successful, trusted and respected retail chains, owned by Home Retail Group, is looking at India as a possible future market, according to Finance Director, Richard Ashton, who was speaking to reporters in London on Wednesday, reports Reuters.

Founded in 1973, Argos sells – online and over telephone – a range of over 8000 top quality, branded products comprising general merchandise and home products, including furniture, electricals, toys, and leisure, from over 670 stores throughout Britain and Ireland, serving over 130 million customers annually.

“India is a possible area we’d consider in the future. We’re not active there, but we’re keeping an eye on it,” he added.

Founded in 1973, Argos sells – online and over telephone – general merchandise and home products from over 670 stores throughout Britain and Ireland, serving over 130 million customers annually.

Retail Week, a trade magazine, had reported last week that Argos could soon do a joint venture deal with Raheja owned Shoppers’ Stop/ HyperCity for its operations.

We want to be grade ‘A,’ not rank no. ‘1′

“Shoppers’ Stop doesn’t want to be rank 1 but grade A. I think the best way to look at business is from the stakeholder’s point of view. We may be in the rank of 4 or 5, but if we are meeting targets set as part of our business plans and generated value, then I think we are doing our job.”

“There will always be somebody in rank 1, 2, 3, 4 of investments. But we are clear on the ethos of our plans and opportunities to be quickly identified. We do not want short-term targets, just a long-term vision. That is value-creation and stakeholders value the company by the PE they get.”

“We are sticking to the high-value end that keeps buying even in a recession…Even with our grocery retail, Hypercity, the grocery content is just about 30%. The positioning is such that not everyone can go in. The walk-ins may not be the highest but it has the highest ticket size and conversion rates.”

— B.S.Nagesh, Managing Director, Shoppers’ Stop (In an exclusive interview to the Economic Times)

India Fashion Forum to be held in Mumbai on 23-24 January

The magnum opus of fashion retail in India, India Fashion Forum (IFF) will be organised on January 23-24, 2007. The venue of the Forum will be at the Renaissance Hotel in Mumbai.

IFF is ranked among the 10 best events in the world of fashion retail (Retail World, UK, Jan 2005 report).

IFF 2007 will house simultaneous and concurrent Leadership talk sessions, exhibits of futuristic concepts in fashion forecasting, branding and retailing, the best of retail spaces across India , and an unparalleled opportunity for business networking.

The most coveted Lycra Fashion Image Awards (LIFA) 2007 will also be awarded during the Forum in the follwing categories:

• Consumer Awards
• Performance Awards
• Special Awards
• Excellence Awards

Those interested, may please log onto www.imagesfashion.com for more information on Images and IFF.

Tesco, Carrefour in the last lap of finalising tie-ups: Kamal Nath

The second and third biggest retailers of the world, France-based Carrefour and the UK-based Tesco respectively, are in the last lap of finalising their tie up arrangements with local partners in India, according to Kamal Nath- the Union Minister of Commerce and Industries. He revealed this while speaking to Shireen Bhan of CNBC TV18.

He, however, skirted a question relating to Tesco’s imminent tie-up with Tatas. Tesco, it may be recalled, was earlier snubbed by Bharti, for a possible retail tie-up for its foray into India. Similarly, Carrefour, has also withdrawn from talks with the Dubai-based Lifestyle for a possible India related retail tie-up.

Only a day ago, ministry sources, it may be recalled, had confirmed that there was legally nothing wrong with the Bharti’s tie-up, announced earlier in November, 2006, with the world’s biggest retailer Wal-Mart.

On being queried about the status of Starbucks’ pending proposal, he said that the matter would be sorted out soon, as there were no insurmountable difficulties in clearing the proposal.

Reliance pays Rs. 986 crore to acquire 5 lakh sft of retail space in Delhi

Mukesh Ambani owned Reliance’s retail juggernaut rolls on with the acquisition in the past two days of eight properties in the capital at the reported spend of Rs. 986 crores, according to PTI and other media reports. Accordingly, Reliance has paid one of the highest prices for commercial properties seen anywhere in the country at about Rs. 20,000 per square feet. It may be recalled that even earlier, Reliance had bought property in Kurla Bandra Complex in Mumbai at about Rs. 13,000 per sq. ft.

Although. Reliance officials have declined to comment on the matter, according to sources, Reliance Retail has purchased over five lakh square feet of space in the eight properties, six of which are reported to be located in Dwarka near the Indira Gandhi International Airport, while the other two are located in West Delhi at Vikaspuri and Rohini. Reliance is expected to be also bidding for another auction of two more properties at Vasant Kunj in South Delhi.The properties acquired by Reliance Retail were a part of auctions by the Delhi Development Authority.

These acqusitions are part of Mukesh Ambani owned Reliance Retail’s Rs. 25,000 crore retail initiative, which envisages setting up multi-format retail stores in 684 towns across the country within 18 to 24 months.

Reliance Retail to source mobile services from biggest rival Bharti

It may come as a big surprise, however, according to sources, two of the biggest rivals in organised retail, Reliance Retail and Bharti have joined hands to ink a deal which will allow Reliance Retail to source mobile and enterprise communication services (which includes mobile, broadband and leased line services) for its retail venture from Bharti Airtel, the telecom outfit of Sunil Mittal owned Bharti group.

It may be interesting to note that it was Mukesh Ambani owned Reliance Industries, which had earlier rolled out Reliance’s CDMA mobile network across the country in the teeth of stiff opposition from Bharti backed GMA mobile operators. After the split of Ambani brothers, Reliance Mobile is now owned by Anil Ambani group.