Category Archives: Retail News

Reliance targeting big on ‘BtoB’ business, hopes to garner 1 lakh crore in revenue

b2bReliance is betting big on BtoB business, being carried through ‘Rangers Farm’ cash and carry wholesale format.

‘Rangers Farm’ stores stores mainly sell fresh vegetables and farm produce in bulk to small merchants and push cart vendors. While, Rangers Farm stores service the needs of Reliance ‘Fresh’ stores on one hand, they help small time shop keepers and vendors to realise benefits of the supply chain efficiencies, on the other.

Cash & Carry business has huge potential in India, where 97% of estimated 12 million retailers are very small in size, who can not afford back-end support.

Currently, Germany’s Metro Cash & Carry chain, South Africa’s ‘Shoprite’ and home grown ITC’s Chaupal ‘Fresh’ are some of the players who have set shop in this format. However, competition is likely to hot up in a few months with the spread of these chains as well as the entry of the world’s biggest retailer Wal-Mart’s entry in the country with its Sam’s Club chain of stores.

The initial response to Rangers Farm format in Hyderabad has been very encouraging with more than 4,000 push cart vendors and small shopkeepers are said to be picking up supplies of food and vegetables in bulk, every day.

According to Reliance officials, the company is keen to garner Rs. 1 lakh crore revenue from this format in the next five years.

Reliance ‘Fresh’ at Pune, Bangalore, Hyderabad, Mumbai & Gujarat in 3 months

Having already opened 49 ‘Fresh’ stores in Hyderabad, Jaipur, Chennai, NCR and few smaller cities of Andhra Pradesh, Reliance Retail, the Rs. 30,000 crore retail initiative of Reliance Industries is gearing up to open 250 ‘Fresh’ within the next two months, in Pune, Bangalore, Hyderabad, Mumbai, Ahmedabad, Vadodara, Surat, Jamnagar, etc.vegetables garden

During the same period, apart from opening ‘Fresh’ stores, which is the existent food and grocery neighbourhood convenience format, Reliance will also open hypermarket and niche retail format stores.

These stores, apart from selling known brands, will also offer merchandise carrying private labels, including ‘Reliance Select’ an in-house label for staple products, which has already been introduced in the existing ‘Fresh’ stores.

Among new services, Reliance is considering offering free delivery of merchandise to customers’ homes. This may directly impact small retailers as customers could save time and effort on procuring goods without sacrificing on the advantages of buying from a big chain like Reliance. According to reports, such deliveries may, however, be restricted up to the distance of three kilo meters.

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

raghu_pillaiReliance 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.

Reliance juggernaut gaining momentum

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

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.

Ambani turf wars may extend to retail

mukesh_anil_ambani.jpgOrganised 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

Titan to retail prescription eyewear

Titan_logoTitan, 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.