Mall Renatls Down + Vacancies Rise

Indian Mall ShoppingMall rentals across all the Metros and Cosmos have nosedived in the past 12 months and vacancies have increased by 15%. Retailers are looking forward to different Revenue models – minimum guarantee and revenue sharing.

Ahmadabad Malls have seen the highest fall in rentals after a record run-up of 30-40% YoY in 2006 and 2007. Mall rentals on Sarkhej Gandhinagar (more…)

Top Performing Brands in Organized / Modern Retail

You are Reading this First Here in Global MediaAnalysts on the street are always on the hunt for the Best Brands and companies. Recent sales data obtained from Food Bazaar – Supermarket chain of 158+ stores, Morgan Stanley has analyzed the top performing brands. Here is an excerpt from the study.
The winners and Losers are decided by Top Sales Data.

Top 5 Food Brands in Food Bazaar are,
Britannia
Maggi – Nestle
Parle
Kellogs
Horlicks (more…)

Post-Mortem Analysis – What went wrong with Organized Retail

A sluggish economy coupled with a slowdown in consumer discretionary spending has resulted in muting retail industry growth. [Not all have turned around like Biyani’s Future Group]Retail cost structures and business models are going through the scanner. Some of the critical areas under purview are as follows.

Flaws in Business Model: Business Models for Modern Trade are weak being skewed towards low margin / high working capital which translates into their ROE’s being marginally above their cost of capital in good times and below their cost of capital in bad times. Retailers have incurred high expansion costs (more…)

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