Top news :
Ready or not
Pantaloon may take 26% in Kamadgiri Synthetics
CapitaLand to set up retail property funds to invest in China, India
Banks must grab the opportunity
Big retailers target India
Monday, July 30, 2007
Indian Retail Industry Update
From today onwards, I am adding a new dimension to my blog. The blog will have Indian retail industry news and this will be updated everyday.
Tuesday, July 24, 2007
Alice in warland
"OH Dear ! Oh Dear ! I shall be too late !"
So muttered the white rabbit just before he plunged into wonderland, with Alice in pursuit. Similar utterances have been escaping the lips of many Indian retailers, as it was confirmed that new players are entering the warland.
Hence the rush , as many new retailers head down the rabbit hole, searching for their own adventures in warland.
So, here is some news :
Gitanjali Group(famous for its jewellery stores) to invest Rs 100 crore in Luxury Connexions and Luxury Malls
Wills Lifestyle(clothing retail) to increase stores to 100
Dabur India plans tie-up with kirana store
Mahindra & Mahindra may tie up with British grocery giant Tesco
Godrej to launch 20 speciality boutique stores by 2010
Spencer to open 1,000 stores by 2009
RPG Group for Rs 1,000 crore expansion
Subhiksha stores touch 1,000
Future Group to open 225 Big Bazaar stores
Bharti Retail to have supermarkets and hypermarkets; will partner with kirana stores through franchise
Reliance Mart in Bangalore and Gujarat; 169 Reliance Fresh stores; may buy 13 per cent stake in France's Carrefour
Total retail space: 1 million sq. ft in 2002; 40 million in 2007; 60 million sq. ft in 2009
The warland is just heating-up. As a footballing metaphor goes ' the final whistle is still some way off and the match may well go into extra time'. Similarly, I believe that even the India retail war will go a long way, may even end in penalty shoot-outs.
So muttered the white rabbit just before he plunged into wonderland, with Alice in pursuit. Similar utterances have been escaping the lips of many Indian retailers, as it was confirmed that new players are entering the warland.
Hence the rush , as many new retailers head down the rabbit hole, searching for their own adventures in warland.
So, here is some news :
Gitanjali Group(famous for its jewellery stores) to invest Rs 100 crore in Luxury Connexions and Luxury Malls
Wills Lifestyle(clothing retail) to increase stores to 100
Dabur India plans tie-up with kirana store
Mahindra & Mahindra may tie up with British grocery giant Tesco
Godrej to launch 20 speciality boutique stores by 2010
Spencer to open 1,000 stores by 2009
RPG Group for Rs 1,000 crore expansion
Subhiksha stores touch 1,000
Future Group to open 225 Big Bazaar stores
Bharti Retail to have supermarkets and hypermarkets; will partner with kirana stores through franchise
Reliance Mart in Bangalore and Gujarat; 169 Reliance Fresh stores; may buy 13 per cent stake in France's Carrefour
Total retail space: 1 million sq. ft in 2002; 40 million in 2007; 60 million sq. ft in 2009
The warland is just heating-up. As a footballing metaphor goes ' the final whistle is still some way off and the match may well go into extra time'. Similarly, I believe that even the India retail war will go a long way, may even end in penalty shoot-outs.
Monday, July 23, 2007
Hypermarket and Supermarket
Note : The information is taken from Wikipedia.
Hypermarket :
In commerce, a hypermarket or multi-department store is a superstore which combines a supermarket and a department store.The result is a very large retail facility which carries an enormous range of products under one roof, including full lines of groceries and general merchandise.When they are planned, constructed, and executed correctly, a consumer can ideally satisfy all of his or her routine weekly shopping needs in one trip.
Hypermarkets, like other big-box stores,typically have business models focusing on high-volume, low margin sales. Because of their large footprints — a typical Wal-Mart Supercenter covers 150,000 square feet (14,000 m²), a typical Carrefour 210,000 square feet (19,500 m²) — and the need for many shoppers to carry large quantities of goods, many hypermarkets choose suburban or out-of-town locations that are easily accessible by automobile.
Supermarket:
A supermarket is a departmentalized self-service store offering a wide variety of food and household merchandise. It is larger in size and has a wider selection than a traditional grocery store and it is smaller than a hypermarket.
The supermarket typically comprises meat, produce,dairy, and baked goods departments along with shelf space reserved for canned and packaged goods as well as for various nonfood items such as household cleaners, pharmacy products, and pet supplies. Most supermarkets also sell a variety of other household products that are consumed regularly, such as alcohol (where permitted), household cleaning products, medicine, clothes,and some sell a much wider range of non-food products.
The traditional supermarket occupies a large floor space on a single level and is situated near a residential area in order to be convenient to consumers. Its basic appeal is the availability of a broad selection of goods under a single roof at relatively low prices. Other advantages include ease of parking and, frequently, the convenience of shopping hours that extend far into the evening. Supermarkets usually make massive outlays for newspaper and other advertising and often present elaborate in-store displays of products. Supermarkets are often part of a chain that owns or controls (sometimes by franchise) other supermarkets located in the same or other towns; this increases the opportunities for economies of scale.
Hypermarket :
In commerce, a hypermarket or multi-department store is a superstore which combines a supermarket and a department store.The result is a very large retail facility which carries an enormous range of products under one roof, including full lines of groceries and general merchandise.When they are planned, constructed, and executed correctly, a consumer can ideally satisfy all of his or her routine weekly shopping needs in one trip.
Hypermarkets, like other big-box stores,typically have business models focusing on high-volume, low margin sales. Because of their large footprints — a typical Wal-Mart Supercenter covers 150,000 square feet (14,000 m²), a typical Carrefour 210,000 square feet (19,500 m²) — and the need for many shoppers to carry large quantities of goods, many hypermarkets choose suburban or out-of-town locations that are easily accessible by automobile.
Supermarket:
A supermarket is a departmentalized self-service store offering a wide variety of food and household merchandise. It is larger in size and has a wider selection than a traditional grocery store and it is smaller than a hypermarket.
The supermarket typically comprises meat, produce,dairy, and baked goods departments along with shelf space reserved for canned and packaged goods as well as for various nonfood items such as household cleaners, pharmacy products, and pet supplies. Most supermarkets also sell a variety of other household products that are consumed regularly, such as alcohol (where permitted), household cleaning products, medicine, clothes,and some sell a much wider range of non-food products.
The traditional supermarket occupies a large floor space on a single level and is situated near a residential area in order to be convenient to consumers. Its basic appeal is the availability of a broad selection of goods under a single roof at relatively low prices. Other advantages include ease of parking and, frequently, the convenience of shopping hours that extend far into the evening. Supermarkets usually make massive outlays for newspaper and other advertising and often present elaborate in-store displays of products. Supermarkets are often part of a chain that owns or controls (sometimes by franchise) other supermarkets located in the same or other towns; this increases the opportunities for economies of scale.
Tuesday, July 17, 2007
Friday, July 13, 2007
Book and Battle
I recently read the book ' It happened in India' and the story is about making of a monster - Big Bazaar and its parent retail company Pantaloon retails. The book is written by founder of the group himself , Mr. Kishore Biyani.
The book has impressed me in many ways :
The book has impressed me in many ways :
- The contents are straight forward. I dont see any masala being added to it.
- Also it is written in pure business english. Apart from few unknown words(1 or 2), the book can be read by a 15 year old reader.
- The book is sold at Rs.99 and so anybody can afford it.
My takings and conculsions from book are many :
- To win the battle of retails, chains have to Indianize their store, Indianize their thinking and Indianize their approach to customers.
- Plan in advance on where to setup the store and study the neighbourhood to fix the commodities to be sold at the store.
- No two stores in India will be same. Customise -> Customize and -> Customize !
- Indians love offers, so once in a while open the shop with as many offers as possible.
A Buddhist maxim says - "Your enemy is your best teacher". So other retailers have to learn from Big Bazaar and prepare for war, cos few battles are without oddities.
Monday, July 2, 2007
The piper at the gates of dawn - II
SD's retail tale for Vishal Megamart looks as shown below :
Net-net , the store needs to maintain itself and will reap the benefits in near future. It tailors to various needs and I loved the store cos it had some good features.
the GOOD :
- Store has in-house cafeteria and small refreshment section.
- Buns and other bakery products are prepared fresh and at the location.
- First store where I have seen the sports section.
- Outside store , VMM has allowed Mehandiwallah to use some space. So till dad/husband shops, girls can get mehandi on their hands.
the BAD:
- Store needs to be better managed.
- The floors are so big that people don't understand the exact location of each section.
- The ground floor, with everyday groceries, has to have some shelves to keep the items.
the UGLY:
- Clothing section is on wrong floor and totally mismanaged.
- The grocery items are kept in cardboard boxes and it looks nasty !
Net-net, I believe there is lot of scope for improvement for Vishal megamart. Overall rating stands at 6.5 out of 10
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