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.
Titan Industries has reached the landmark number of 1000 stores across country. The milestone store has been opened in Bangalore and reflects the future of modern retail and lifestyle industry and offers a unique fusion of watches and eyewear.
With this Titan becomes first Indian specialty retailer to reach the number in seven varied formats. With a retail footprint across 177 cities, 26 states, 3 Union Territories and a total retail area of 1395712 sq ft, Titan Company has stores for Watches under World of Titan, Helios and Fastrack; Jewellery under retail brands Tanishq, Zoya, GoldPlus and Eye Plus for multibrand eyewear.
Continue reading Titan opens 1000th store in India
The American discount footwear brand, Payless ShoeSource, now comes to India. A part of the Collective Brands, Inc., the brand ties up with Reliance Retail as its exclusive franchisee in the country.
The retail conglomerate, Reliance Retail, will replicate the store design strategy followed across other international market. The stores will house footwear and fashion accessories for the complete family. The USPs of these stores will be great value priced products, hard-to-find footwear sizes for women and perfectly fitting footwear for children.
Payless has 258 stores worldwide in countries including Russia, the Philippines, Saudi Arabia, Indonesia, Thailand, Vietnam, South Korea, Kuwait, United Arab Emirates and Malaysia.
If reports are to be believed, Apple’s plans to expand retail presence in India has hit a roadblock, as the partner Reliance Retail shuts 16 of the existing 20 iStores in India. The stores are being shut as the store designs are not upto the standards set by Apple.
The norms laid by Apple and not followed by Reliance includes high ceilings, white LED lighting, wooden floors and set size of display tables. While Reliance feels that these norms will not be feasible in Indian market.
The shut stores will be transformed in to Reliance Digital Xpress stores, which Reliance Retail is expanding as a concept.
The cosmetics brand Colorbar, which is known for its retail kiosk operations, has expanded its product offerings. The brand has launched a range of fragrances created in Paris.
The range presently offers two fragrances including L’amour and Reveur, signifying a state of mind, and a way of looking at life. Continue reading Colorbar expands into fragrance category
The US lifestyle brand, Cherokee, has entered a licensing deal with Mahindra Retail. Under the deal, the US player will be retailing its licensed Liz Lange Maternity range through Mahindra’s Mom & Me stores, specialty stores for maternity and kids.
The Liz range will be sold through Mom & Me brick and mortar stores and also online.
Commenting on this partnership, Cherokee Chief Executive Officer, Henry Stupp, noted, “We are very excited to partner with the Mahindra Group and to have the opportunity to bring the Liz Lange brand to a broader customer base. Just as Liz Lange prides itself on being one of the most recognized and respected maternity brands, Mom & Me stores strive to be the preferred destination of every expectant mother looking for world-class products and services. As we do with all of our partners, we will support this relationship with our unique 360 degree service model. This is an important step towards our globalization of the Liz Lange brand as we continue to pursue additional partnerships around the world. We look forward to a successful partnership with Mahindra and the many possibilities ahead.”
K.Venkataraman, CEO of Mahindra Retail, endorsed Mr. Stupp’s enthusiasm and said, “Mom & Me has practically been the pioneer in the maternity-wear category in India, and has been the retail brand of choice for over a million mothers in its short history since inception in 2009. Our goal is to partner with world-class companies that bring innovation and excellence to our relationship and exclusive and valued products to our customers. We believe that The Cherokee Group is a premier licensing and marketing company that exhibits such traits and the Liz Lange Maternity brand is a perfect fit for our Mom & Me stores; bringing great style and value to our customers. We anticipate a long, fruitful relationship with the Liz Lange brand as well as The Cherokee Group.”
India is slowly and gradually accepting luxury and increasing the space for luxury in India. According to a recent report by Cushman & Wakefield, luxury in India will acquire 1.44 per cent of the total retail market by 2015 as against one per cent currently, while the total retail malls stock is set to increase by 27 per cent by 2015.
Highlighting the changing luxury retail scenario in India, the report suggests that total current operational mall space in the organised retail sector across the top seven cities of India is estimated at 66 million (approx.) sq. ft. of which luxury retail space is only 770,000 sq. ft.
Of the seven cities, Delhi/NCR leads the space acquisition at 38 per cent, followed by 21 per cent in Mumbai and 17 per cent in Bengaluru.Due to a strong mall culture and fashion hubs in the country, NCR and Mumbai lead the show while a great level of disposable incomes and a leading IT hub Bengaluru has become the third best destination. Continue reading Delhi leads to be the luxury capital of India
In order to tap the 60 per cent unorganised retail industry, Kishore Biyani aims to expand the presence of Big Bazaar Direct to 250 by October-end and 1200 by March. The expansion is taking place via franchise model and offers the service of call-to-order to its customers. This format fill a thin line between the neighbourhood stores and organised modern trade.
In an exclusive interview with CNBC-TV18, Biyani informs that the venture will offer 1800 SKUs, currently and expand to 10,000 going further. The aim will be to sell high margin products including electronics and general merchandise. Moreover, to cater to the special call-to-order, Future Group has also set up a new supply chain, thus catering to pan-India needs which cannot be sufficed through physical retail, otherwise.
Under the franchise model, the franchisee will have to invest Rs 3 lac in the business and then the company will put in systems and give a tablet to them. Currently, the delivery is promised between three-seven days.
The brand which revolutionised organic on an organised level, Organic India, now aims to reach new heights as it eyes turnover of Rs 500 crore in next two-three years. To achieve the target, the brand plans to open exclusive retail outlets starting from Lucknow.
The brand which clocked turnover of Rs 150 crore last year, specialises in herbal and organic products for all your needs including beverages, kitchen commodities and other food supplements.
Interestingly, the Lucknow based company gets 60 per cent of its business from overseas while India accounts for 40 per cent.