Having a hard time competing with local kirana stores, Reliance Retail, aims to transform few of its giant sized hypermarkets in to wholesale cash & carry stores.
The first under the conversion plan is 44,000 sq ft Reliance Mart in Bhopal’s Aashima Mall which is under renovation currently and is expected to open in a new avtar in February 2014. The other two to be apparently converted are in Ludhiana and Aurangabad, each.
With the cash and carry model, the organised retailers will be able to supply bulk order to the kirana stores, which otherwise were their competition.
Modern retail has always been a step behind when it comes to consumers’ preference to shop for food and grocery, though modern retail stores offer a wide variety what they are unable to offer is good price. While modern retail sells at MRP until a scheme run by brand, neighbourhood stores sells at wholesale price 365 days of the and if you are lucky you can also avail ongoing schemes.
Finally, as 2014 rings in, its a good news for multi-brand retail FDI. Foreign Investment Promotion Board (FIPB) approves Tesco’s proposal to invest $110 million in Indian retail market in JV with Tata’s Trent Hypermarkets.
The approval makes Tesco the official first in the Indian retail market to set shop in JV with an Indian brand.
Tesco will own 50 per cent stake in Trent Supermarkets that currently runs 16 Star Bazaar hypermarts across Maharashtra, Karnataka, Gujarat, and Tamil Nadu. But Gujarat and Tamil Nadu not yet up for FDI, the current JV will focus on the stores in Maharashtra and Karnataka.
Tesco becomes the first international brand to file for multibrand retail FDI in India as it plans to acquire 50 per cent stake in Tata Trent, hence forming a JV. It was earlier in 2012 when FDI in multibrand retail was approved.
Tesco has filed for the JV with DIPP and if approved, the stake will be bought for $110 million. Tesco will own 50 per cent stake in Trent Supermarkets that currently runs 16 Star Bazaar hypermarts across Maharashtra, Karnataka, Gujarat, and Tamil Nadu. But Gujarat and Tamil Nadu not yet up for FDI, the current JV will focus on the stores in Maharashtra and Karnataka.
The stores will not use Tesco’s brand name anywhere. With this agreement, the stores will sell a wide variety of products ranging from food to clothing, under the tag ‘A Tata and Tesco Enterprise’. Moreover, the JV also aims at opening three to five stores in India annually.
Now that Walmart has broken ties with Bharti Retail and is going through a rough phase, Tesco gets a great opportunity to emerge in the market.
So next time you walk in to the More Megastore, it will just not be your groceries but also your fashion needs that will be satiated as the modern retailer expands portfolio. From the house of Aditya Birla Group, More has added fashion apparel and footwear as a new segment to its product offerings.
Though the retailer has been selling various other brands in that segment, it is now that they introduce nine in-house brands. Speaking on the launch of the brands, Russell Berman, CEO – Hypermarkets, Aditya Birla Retail Limited said, “We are excited to expand our footprint to apparel and footwear. The category is a fast growing segment and is a daily need for most consumers.”
He further adds, “We wanted More Megastore to evolve and make it lot more relevant to a larger spectrum of consumers not just across the bigger towns but also to smaller cities like Vadodara, Indore, Mysore and more. By paying special attention to the need of new age customers, we have enhanced our offerings immensely.”
- Menswear: BlueEarth, Be Casuals & Kruff
- Womenswear: Karinee & Bjoyzz
- Kidswear: Chatter Kids and Yo
- Footwear: Berwins and Inchheels
Tata Trent, the retail arm of Tata Group, has ended its six year old agreement with Xander Group, which funded its stores opening across malls. The arm now plans to open standalone Star Bazaar stores and not restrict itself to malls.
Unfortunately, Tata Trent which has a franchise and a wholesale supply arrangement with Tesco Plc, could not open any Star Bazaar in 2012-13 as they all were located in malls. These stores could not operational as the overall package din’t come across as attractive. Continue reading Tata Trent says no to malls for Star Bazaar; breaks ties with Xander Group