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Ajith
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Quote Ajith Replybullet Posted: 06/Apr/2007 at 9:42pm

There is nothing sacred about 2010 but that has been the general tendency.A 5 year outlook ought to be the minimum.

In Kerala a Fabmall outlet was doing lacklustre business till they started selling vegetables.Now they are doing roaring busiess.Why?They are selling tomatos at Rs 3.50 per kg while the salesman at a competing large local retail shop was telling me they were getting tomatos at Rs 6 per kg so how can they possibly compete.But the question is is the market large enough for so many players.Pantaloon is set to open shop soon.In any case local farmers are set to benefit as middlemen are being eliminated .Definitely,organized retail will triumph and grow rapidly.
 


Edited by Ajith - 06/Apr/2007 at 10:49pm
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Quote xbox Replybullet Posted: 06/Apr/2007 at 6:56am
Organized retail is next big thing to India << after mobile, I guess >>. For jobs, entrepreneurs, farmers, financial & real-estate companies it is good news. I am not too sure about investors (expect promoters). First, most of them will list at highest valuations <<thin meat for retail investors>>. Second risk of being out of business is quite high. Margins will remain under pressure mainly due to competition. It will take a while for them to expand it. After 3-4 years, Market may not give high valuations to sector.
Margin of safety is key here.
Don't bet on pig after all bull & bear in circle.
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Quote Ajith Replybullet Posted: 06/Apr/2007 at 8:32am
Yes,I would tend to agree.Expansion of retail would lead to spin-off benefits certainly but the final shape of who the winners are going to be is difficult to see at this stage.But since the pie is so large the ultimate winners(will be known in 4-6 years) will be amply rewarded.Whether Pantaloon will continue to thrive as local German retailers have is difficult to see but as I said its great that the pie is large and if it does succeed the market cap will multiply but its not going to be easy .
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Quote praveenmbd Replybullet Posted: 07/Apr/2007 at 3:45pm
Retailers offer incentives to fight attrition
2007-04-07 11:12:11 Source : Moneycontrol.com
 
 

Battling acute attrition, retailers are throwing in plenty of incentives to retain frontline staff, reports CNBC-TV18.

 

Organised retail is set to become one of the country's biggest employment generators. But at the moment the sector is up against a 30% attrition with a limited pool to hire from. Retention of employed staff, particularly the frontline staff constitutes 85% of a retailer’s workforce, is becoming a rising concern.

 

While Pantaloon has an attrition rate of 8.6% per annum, RPG Retail says their frontline attrition rate has drastically increased to 16% now from 5% last year. Subhiksha too is faced with an attrition of as much as 5 - 6% per month. And with large corporates announcing aggressive retail plans, retailers expect the churn rate to rise further. The worried retailers have decided to go back to the drawing board.

 

 "The idea is to work on body, mind and soul, teach them to exercise, remain fit, yogic meditation for mind fitness, relationship development with other people, interdependence, how to eat the right things to be able to stand on your feet and sell for 8 - 10 hrs and how to keep the mind fresh" says Sanjay Jog, Head-HR, Pantaloon Retail

 

Pantaloon is spending Rs 30 lakh on 1000 employees per month for such an initiative. Reliance Retail has a talent transformation programme where people are made to identify their skill sets.

  

Pantaloon has gone a step further and tied up with the Madurai Kamraj University, which allows its staff, who are primarily 10+2 pass outs to do a distance-learning course in Retail Management and complete their graduation while working. On the monetary front some retailers are giving retention bonuses for every quarter an employee stays on after the first 3 quarters.

 

 

RPG Retail has also come up with a multidimensional incentive programme where their staff are given bonuses not just based on performance but by the total sales the particular shop makes. It now remains to be seen whether these innovative schemes will rein in attrition.

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Quote praveenmbd Replybullet Posted: 07/Apr/2007 at 6:34pm
Garment retailers on space hunt
Pradipta Mukherjee / Kolkata April 3, 2007
Major garment brands are on a retail overdrive and are expected to create demand for over 100 units of quality retail space in the next one year, a development that will surely bring cheer to the many developers building retail space in the country.
 
Though some surveys have warned that there could be an oversupply situation in retail space in the end of 2007, the confidence and response of some of the major garment retailers reveal massive expansion plans driven by demand for quality retail space.
 
Increasing retail presence and buckling stores into destination shopping zones seem to be working with most garments and apparel majors in India.
 
In the face of retail boom, apparel majors have recognised escalating retail presence across the country as one of the imperative growth drivers for 2007.
 
For example, Cottons by Century, the apparel brand from B K Birla's flagship Century Textile and Industries Ltd, is planning to open 100 more company-owned-managed stores and about 50 franchisee outlets, taking the total number of stores to close to 250 by March 2008, with an aim to generate a turnover of Rs 100 crore by next fiscal, from Rs 50 crore at present.
 
"One of our thrust areas this year would be increasing our retail presence across the country, especially smaller towns and cities which lie untapped," said Mahendra Padhy, head-marketing, Cottons by Century.
 
Agreed Yash Manik, head – retail operations, Brandhouse Retails, a subsidiary of S Kumars Nationwide Ltd. "With rising disposal income levels, even tier I and tier II towns and cities are becoming significant consumers as branded clothing become more affordable ," said Manik.
 
Brandhouse Retails plans a total of 1200 stores this year for its brands – Reid & Taylor, Belmonte, Carmichael House – 50 per cent of which would be run on franchisee model and rest company-owned and managed.
 
Thomas Scott, the Rs 65 crore apparel brand of the Rs 800 crore Bang group of companies, is also planning aggressive retail expansion this year.
 
"For a not-so-exposed menswear brand like Thomas Scott, retail expansion is imperative to ensure visibility that lead to higher sales margin too. This year, therefore, most of our expansion plan would centre around retail expansion and as local a presence as possible," said Kumar Menon, CEO of Thomas Scott, which plans to have a total of 100 stores by 2008 from the present 4. These would be run on franchisee model covering 800 sq ft on an average per store.
 
Other apparel brands like Park Avenue which is also the highest selling brand of Raymond, is planning a total of close to 55 exclusive outlets all over India by December 2007, from close to 12 at present.
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Quote praveenmbd Replybullet Posted: 07/Apr/2007 at 6:36pm
Bharti plans 3-tier retail model
Surajeet Das Gupta / New Delhi April 5, 2007
In a model that will fundamentally differ from its partner Wal-Mart's, Bharti Retail has finalised a three-tier retail format that will provide customers access to a store 1.5 to 7 km from their homes.
 
Bharti Retail, a subsidiary of the Delhi-based Mittal group, has tied up with Wal-Mart for back-end and logistics support. Foreign direct investment in retail is currently prohibited in all but single-brand retail stores.
 
Based on customer research, Bharti Retail is planning a small-format convenience store within 1.5 km of the customer home, a mid-level store 2-3 km distant and a hypermarket within a 5-7 km drive.
 
This is in sharp contrast with the Wal-Mart retail model in the US which is dominated by large-format stores on city outskirts. The world’s largest retailer has a few small convenience stores in countries like Mexico to cater to neighbourhood demand.
 
Bharti’s model, on the other hand, will have more convenience stores and fewer hypermarkets.
 
“In India, our studies have shown we require a multi-format store structure, and for large store formats we have to consider the challenges posed by our poor infrastructure. The distance has to be convenient for customers to go to the store,” explains Bharti Retail President and Chief Operating Officer Vinod Sawhney.
 
The small stores will range from 2,000 sq ft to 5,000 sq ft in size and will mainly stock food, grocery and household items that have a high purchase frequency of seven to eight a month.
 
The company plans to build a majority of the stores within this format under a model that will franchise existing mom-and-pop stores.
 
The hypermarkets will range from 75,000 sq ft to 1.5 lakh sq ft in size and a mid-level store will be 25,000-50,000 sq ft in size.
 
The new retail entrant, which hopes to have over 10 million square feet of retail space by 2015, is also considering shop-in-shop formats (under which it would rent space to a jewellery or pharmacy chain), and a private label for food, grocery and even consumer electronics.
 
It is also studying the possibility of introducing free home delivery services and an online format, should customer demand exists.
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Quote basant Replybullet Posted: 07/Apr/2007 at 7:12pm
It is also studying the possibility of introducing free home delivery services and an online format, should customer demand exists
___________________________________________________________
should customer demand exists: Mittal ji should be told that Big Bazaar already does home delivery and futurebazaar.com should be doing an annual sales of Rs 1600 crore in 2010 that is almost the 80% of Pantaloon's 2006 turnover!!!
 
Most of the demand is created they never exist and that creation is done by the first mover in that industry!!!
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Quote kulman Replybullet Posted: 09/Apr/2007 at 7:45am

Gujarat to have +180 Reliance Fresh stores

 

Press Trust of India / Ahmedabad April 9, 2007

 

 

Reliance Retail is all set to capture the food retail market in Gujarat by setting up over 180 Reliance Fresh stores in 16 cities and towns in the state over the next six months.

 

Reliance Retail, a wholly-owned subsidiary of Mukesh Ambani-led Reliance Industries, will kick its operations in western India by launching nine Reliance Fresh stores in Ahmedabad tomorrow.

 

"Within a month, the company will open over 45 stores in Vadodara, Surat, Jamnagar, Bhavnagar and Rajkot", Parimal Nathwani, president (corporate affairs), RIL, told reporters.


"The number of stores is expected to cross 180 mark within the next six to seven months after cities like Mehsana, Palanpur, Anand, Nadidad and others are covered", he added.


The first Reliance Fresh store was launched in Banjara Hills in Hyderabad in November last year and till date, the company has started 100 such stores across the country


The stores that will be launched tomorrow will be the first in the entire Western Region and will provide fresh fruits and vegetables, grocery, dairy products and staples, said Gunender Kapur, President and CEO (foods business) Reliance Retail.

 
--------------------------------
 
Our Gujarat based members may wish to update us their experience of shopping at these stores as they open.
 
 


Edited by kulman - 09/Apr/2007 at 7:48am
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