Category: Retail Research

Pantaloon / Future Group is undertaking a much needed course correction and the strategy makes sense. Execution though remains key, and given the challenging macro environment with discretionary consumption slowing. Management led by Biyani noted that ramp-up of stores is now taking longer – around 18-24 months in large malls, vs. <12 months earlier due to the fact that a lot of the malls are now destination-based malls.

Same Store Sales [SSS] growth for Big Bazaar (the key format) has registered low single digit growth Y/Y. Mgmt notes that this growth should be split into two parts – certain categories like communications / jewellery that the mgmt is deliberately de-focusing, which dragged down (more…)

The Indian Retail Sector one of the vibrant pillars of Indian Economy with consumption story to cater to a Billion population is going through turbulent times evident from growing discounts as consumer Discretionary Spending Deteriorated, which is unlikely to improve in the short term. Adding to Retailers woes is the downward revision of GDP due to policy paralysis by erstwhile FM Mr. Pranab Mukherjee.

The Retail Sector saw a downgrade to negative from stable by Fitch as funding requirements of (more…)

Yum! Brands (Yum), world’s leading quick service restaurant [QSR] chain with brands like KFC, Taco Bell and Pizza Hut. Yums Same Store Sales [SSS] growth has been around 10% while Jubiliant owned Dominos has been reporting over 25% in the last several quarters.

Yum has 471 stores in India comprising 208 KFC stores, 166 Pizza Hut casual dining, 94 Pizza Hut Home Service and three Taco Bells. Pizza Hut Home Service has been growing at (more…)

Brick & Motor Retailing, Modern / Organized Retailing globally is now $3 Trillion Industry. Business teaches us a lesson that innovative means of engaging consumer means new way selling goods to them. After Mall retailing, Amazon showed the way of Internet Retailing. Now Groupon, SnapDeal etc are showing the power of Group Buying for consumer.

Here are two thoughts on my mind (more…)

Jubilant Foods master franchise of Dominos operates on a business model significantly different from that of its closest competitor Pizza Hut (part of Yum! Brands), which operates through at least
eight franchisees in India including Devyani and Dodsal. The key differences between the two business models are as shown below.

Franchisee rights – Exclusive rights for the whole country. (more…)

Based on anecdotal evidence, the size of the Indian food services industry is estimated at US$250bn, and growing at 15%-20% CAGR over the past five years. The organized retail food industry occupies mere 15% of the overall food market and this is how various sections of the (more…)