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…)
Big Bazaar in Top 10 Most Trusted Brands
Pantaloon Retail India’s Hypermart format Big Bazaar is rated amongst the Top 10 Most trusted brands in services sector in India competing with others like HDFC etc. Big Bazaar now boast of 116 stores across (more…)
Bharti – Wal-Mart – Money is no constraint
World’s leading retailer – Wal_Mart is extremely serious about Indian venture as the company has clear directions to International Operations head – Doug McMillon that their will be no dearth of funds for expansion in India, the next Trillion Dollar Economy in the Making.
Wal-mart ins association (more…)
Koutons enhancing Product portfolio
Koutons Retail introduced accessories and shoes in its stores during FY09. Accessories are available in all stores while shoes are available in approximately 200 stores. The share of Les Femme (more…)
Tata Croma to expand its product portfolio
Tata Croma, owned a by Infiniti Retail and a 100% subsidiary of Tata Sons, intends to augment its product portfolio under the private label category to 100 in the present fiscal. Presently, this electronics retain chain has portfolio (more…)
Future Group’s Kshitij into Mall + Realty Venture
Kishore Biyani was doing an excellent job [in our opinion] by taking the best advantage of first mover into the nascent organized retail sector and completely focusing on Retailing. However, the group now wants to enter Retail and Mall management and dveleopment through (more…)
Gitanjali Gems acquire MobileNXT – Hoop is New Brand
Gitanjali Gems has announced that it is going to acquire 70% stake in Bangalore-based mobile retail chain operator MobileNXT through its wholly-owned subsidiary, Gitanjali Lifestyle (GLL).
GLL (more…)
Azim Premji in Legal Battle with Subhiksha
Zash Investments, the VC firm promoted by Azim Premji has entered into a legal battle with bankrupt Subhiksha as the former has sent legal notices to the Board of Directors, Independent Consultants and Sr. Executives on discharging their duties.
Zash (more…)