UK-based retailer Tesco has opened its new format department store in the Czech Republic city of Liberec. Branded ‘My Liberec’, the newly launched store is spread over 75,350 square feet area across two floors and retails apparels, homewares and beauty products. Further, the company plans to open the second department store 'My Prague' in the city in the third quarter of this year, reports Retail Week.
“The department store is designed to be a step up from a traditional Czech Tesco branch,” quoted Bohumil Zematy, store director, Tesco in the report.
My Liberec retails private labels like Florence & Fred and Cherokee, besides retailing over 350 brands including Levi's, Simon Carter and Energie, added the release.
Monday, March 30, 2009
Wal-Mart Stores relaunches Great Value Brand
Wal-Mart Stores is learnt to have been relaunching its Great Value private brand with more than 80 new products and distinctive packaging in the United States. Aiming to win business from increasingly price-conscious shoppers, the world's largest retailer will also change formulas for 750 products under the brand, which includes thousands of products across more than 100 food, beverage and household product categories, suggest media reports.
In the reports, Wal-Mart has said that its private brands are becoming more important as consumers look for ways to stretch limited budgets amid the recession. As shoppers run out of money in between paychecks, they are trading down to buy cheaper private brand products instead of national brands, Wal-Mart said.
In the reports, Wal-Mart has said that its private brands are becoming more important as consumers look for ways to stretch limited budgets amid the recession. As shoppers run out of money in between paychecks, they are trading down to buy cheaper private brand products instead of national brands, Wal-Mart said.
Colgate Palmolive India seeks court approval for merger
Colgate Palmolive India has announced that SS Oral Hygiene Products, a wholly owned subsidiary of the company, had applied to the Andhra Pradesh high court for sanctioning of the scheme of amalgamation of SS Oral Hygiene Products with the company.
The company made the announcement in its latest disclosure to Bombay Stock Exchange.
Further the company informed that the high court has sanctioned the said scheme of amalgamation by its order dated February 24, 2009 and a copy of the High Court Order (received on March 26, 2009) has been filed with the registrar of companies at Hyderabad on March 26, 2009. The said scheme of amalgamation will finally become effective the date on which the order is filed with the registrar of companies at Hyderabad.
The company made the announcement in its latest disclosure to Bombay Stock Exchange.
Further the company informed that the high court has sanctioned the said scheme of amalgamation by its order dated February 24, 2009 and a copy of the High Court Order (received on March 26, 2009) has been filed with the registrar of companies at Hyderabad on March 26, 2009. The said scheme of amalgamation will finally become effective the date on which the order is filed with the registrar of companies at Hyderabad.
hoe Tree goes cautious in its expansion plans; shifts focus to private label
Footwear retail venture of Delhi-based Sports Station India Shoe Tree, which recently closed two of its outlets in Mumbai and Ahmedabad on account of being them non profitable, plans to open five more stores by the end of 2009.
Talking to IndiaRetailing, Puneet Verma, vice president - sales, Sports Station India said, “We have already started the retail corrections. We are closing the non profitable stores and opening more economically viable options. We plan to open atleast five more stores by the end of this year. We recently opened a 4,000-square feet store in Karol Bagh, Delhi which is the market to be for the footwear business."
Currently, Shoe Tree has eight stores operational across north and west India. With one store each in Chandigarh, Mumbai and Pune, the Delhi-based footwear retailer operates five stores in the national capital.
“Looking at the scenario, we shall be expanding but very cautiously. That's what makes sense to sail through these times,” added Verma.
Commenting further on the ongoing slowdown and its impact, Verma opined, “Current scenario is majorly driven by the sentiments more than the actual pinch of it. But yes, there is a downturn. The consumption in these times is ‘requirement related’ rather than being ‘let me pick it up’. To drive this impulsive approach, we are working towards latest and value for money drive for the product."
With all the outlets being company-owned currently, the footwear retail major did not deny adopting to franchisee model. “As of now, we are concentrating only on company owned outlets. However, we may opt for franchisee model in future depending on the scenario,” disclosed Vema.
Adding further, Verma said, “Footwear market in the country is at a very developing stage. Thus, the downturn shall affect the growth percentage but there shall still be some growth.”
Meanwhile in an attempt to boost sales figures, the company is also shifting focus towards private labels. “Apart from the brands which we sell, we plan to get more focused in to the in-house merchandise which is going to be more international in style, design and colours and will make it more value for money to the consumers,” shared Verma.
“Instead of steady, long shelf range, we shall look forward to do small spurts to increase more options and variety for the customer to choose from and reducing our dead stocks as well. Plan to get more location specific on the range , rather than one range for all Shoe Tree stores,” concluded Verma.
Talking to IndiaRetailing, Puneet Verma, vice president - sales, Sports Station India said, “We have already started the retail corrections. We are closing the non profitable stores and opening more economically viable options. We plan to open atleast five more stores by the end of this year. We recently opened a 4,000-square feet store in Karol Bagh, Delhi which is the market to be for the footwear business."
Currently, Shoe Tree has eight stores operational across north and west India. With one store each in Chandigarh, Mumbai and Pune, the Delhi-based footwear retailer operates five stores in the national capital.
“Looking at the scenario, we shall be expanding but very cautiously. That's what makes sense to sail through these times,” added Verma.
Commenting further on the ongoing slowdown and its impact, Verma opined, “Current scenario is majorly driven by the sentiments more than the actual pinch of it. But yes, there is a downturn. The consumption in these times is ‘requirement related’ rather than being ‘let me pick it up’. To drive this impulsive approach, we are working towards latest and value for money drive for the product."
With all the outlets being company-owned currently, the footwear retail major did not deny adopting to franchisee model. “As of now, we are concentrating only on company owned outlets. However, we may opt for franchisee model in future depending on the scenario,” disclosed Vema.
Adding further, Verma said, “Footwear market in the country is at a very developing stage. Thus, the downturn shall affect the growth percentage but there shall still be some growth.”
Meanwhile in an attempt to boost sales figures, the company is also shifting focus towards private labels. “Apart from the brands which we sell, we plan to get more focused in to the in-house merchandise which is going to be more international in style, design and colours and will make it more value for money to the consumers,” shared Verma.
“Instead of steady, long shelf range, we shall look forward to do small spurts to increase more options and variety for the customer to choose from and reducing our dead stocks as well. Plan to get more location specific on the range , rather than one range for all Shoe Tree stores,” concluded Verma.
Koutons Retail's promoters pledge 11.22 pc stake
Apparel retail major Koutons Retail has said that three of its promoters pledged 11.22 per cent stake in the firm, having over 305 million total outstanding shares.
According to the latest filing of Koutons Retail with Bombay Stock Exchange, the promoters – Davinder Pal Singh Kohli, Bhupinder Singh Sawhney and Gurmeet Singh Sawhney - collectively pledged over 34.30 lakh equity shares with lenders for an undisclosed amount.
According to the latest filing of Koutons Retail with Bombay Stock Exchange, the promoters – Davinder Pal Singh Kohli, Bhupinder Singh Sawhney and Gurmeet Singh Sawhney - collectively pledged over 34.30 lakh equity shares with lenders for an undisclosed amount.
Greg Norman unveils Spring-Summer 2009 collection
Greg Norman Collection, a leading marketer of golf-inspired sportswear for men and women, has unveiled the Global Spring Summer 2009 collection in the Indian market. The collection is launched in three ranges — Ultimate playdry pique pro Polo, Fine Stripe Polo and Classic Polo, according to a company press release.
Priced in between ranges of Rs 550 and Rs 2700, the collection comprises products including shirts and cap and is available at Greg Norman stores across the country, added the release.
Priced in between ranges of Rs 550 and Rs 2700, the collection comprises products including shirts and cap and is available at Greg Norman stores across the country, added the release.
Friday, March 27, 2009
Lifestyle to invest Rs 4.5 bn in India by '11
Dubai-based Landmark group promoted Lifestyle International has planned to open 35 Lifestyle stores and 15 Home Centre showrooms in India by 2011. As part of the plan, the company will invest Rs 4.5 billion over the next two years, informed a top company officials.
Speaking on the store launch in Mumbai, Kabir Lumba, executive director, Lifestyle International, said, “We will add 35 Lifestyle stores and 15 Home Center showrooms by 2011 in India.”
While Lifestyle stores retail products including apparels, footwear and health & beauty, Home Centre retails furniture, home décor and soft furnishing.
Currently the company operates 16 Lifestyle stores and seven Home Centre outlets across the country.
Speaking on the store launch in Mumbai, Kabir Lumba, executive director, Lifestyle International, said, “We will add 35 Lifestyle stores and 15 Home Center showrooms by 2011 in India.”
While Lifestyle stores retail products including apparels, footwear and health & beauty, Home Centre retails furniture, home décor and soft furnishing.
Currently the company operates 16 Lifestyle stores and seven Home Centre outlets across the country.
Retail is going right, but speed is a major concern: ED, retail services, C&W
A couple of things have gone wrong with respect to modern retailing in India. We have gone wrong in estimating the market size, we have gone wrong in understanding the consumer mindset and preferences, and specially the curve on which consumer will grow,” commented Rajneesh Mahajan, executive director, retail services, Cushman & Wakefield. Mahajan shared his views when IndiaRetailing asked him to comment on the current scenario of modern retailing in India.
Taking the discussion further, he adds “It resulted in creating infrastructure which is not right. It resulted in creating stores which are not right. This has ultimately affected the expansion and development strategy.”
When asked whether there was any other way to do it right, Mahajan said, “Might not be. Unless you do a store, open it for consumers and they come in, you can never say where you are going wrong or what is it that is going wrong. So, yes, all we know today is that we have gone wrong. But was there any other way to get it right, is a million dollar question for almost all of us.”
“Retail is not going wrong. Retail is going on its own right path. But its more a problem of speed. I do believe that we were on an overdrive. The speed did not give us flexibility to do things in a right manner. Had we retarded the speed at the right time, we could have easily escaped surgical correction which is happening today,” he further said.
“Retailing has two parts – buying and selling. Retailing in an organised way is a channel of selling. Retailers will have to understand the preference of a consumer for five years, because their buying behaviour changes in every 2-3 years. The journey itself will teach many things to developers and retailers. Indian retail and modern retail is going to grow only. But the channels will have to improvise themselves” disclosed Mahajan.
Commenting further on the retailers and developers blaming consultancy firms for (wrong) advices. Mahajan said, “What matters is not the advice, but the execution that makes the real difference.”
Replying on a question about the possibilities of repeating the same mistake in terms of speed and formats in tier II and III cities by developers and retailers, Mahajan appeared optimistic enough in his words. "Retailing in tier II and III cities is much simpler and complex altogether. They are going to get more disposable income, thanks to 6th pay commission. And despite being considerable amount of development in terms of inflow of foreign banks, educational institutes, restaurants, flats and all, you will not see their ethnic values and shopping habits changed drastically in last decade. And as a retailer and developer, you must thank to FMCG companies who have been present there from decades to support you in terms of brand recognition and availability."
“A consultant's job is to consult based on certain data. When you open a store, you analyse what consumers are buying. But when you don't open a store, you don't know what consumers are not buying. So I can't say that retailers went wrong or developers went wrong or consultants went wrong. I think, we all went wrong in analysing the data which we had. Our role is restricted. We are a real estate consultancy firm and our experience has been till recently that we are required for very specific data on a specific area. We have never been involved in overall emergence of a shopping centre,” concluded Mahajan.
Taking the discussion further, he adds “It resulted in creating infrastructure which is not right. It resulted in creating stores which are not right. This has ultimately affected the expansion and development strategy.”
When asked whether there was any other way to do it right, Mahajan said, “Might not be. Unless you do a store, open it for consumers and they come in, you can never say where you are going wrong or what is it that is going wrong. So, yes, all we know today is that we have gone wrong. But was there any other way to get it right, is a million dollar question for almost all of us.”
“Retail is not going wrong. Retail is going on its own right path. But its more a problem of speed. I do believe that we were on an overdrive. The speed did not give us flexibility to do things in a right manner. Had we retarded the speed at the right time, we could have easily escaped surgical correction which is happening today,” he further said.
“Retailing has two parts – buying and selling. Retailing in an organised way is a channel of selling. Retailers will have to understand the preference of a consumer for five years, because their buying behaviour changes in every 2-3 years. The journey itself will teach many things to developers and retailers. Indian retail and modern retail is going to grow only. But the channels will have to improvise themselves” disclosed Mahajan.
Commenting further on the retailers and developers blaming consultancy firms for (wrong) advices. Mahajan said, “What matters is not the advice, but the execution that makes the real difference.”
Replying on a question about the possibilities of repeating the same mistake in terms of speed and formats in tier II and III cities by developers and retailers, Mahajan appeared optimistic enough in his words. "Retailing in tier II and III cities is much simpler and complex altogether. They are going to get more disposable income, thanks to 6th pay commission. And despite being considerable amount of development in terms of inflow of foreign banks, educational institutes, restaurants, flats and all, you will not see their ethnic values and shopping habits changed drastically in last decade. And as a retailer and developer, you must thank to FMCG companies who have been present there from decades to support you in terms of brand recognition and availability."
“A consultant's job is to consult based on certain data. When you open a store, you analyse what consumers are buying. But when you don't open a store, you don't know what consumers are not buying. So I can't say that retailers went wrong or developers went wrong or consultants went wrong. I think, we all went wrong in analysing the data which we had. Our role is restricted. We are a real estate consultancy firm and our experience has been till recently that we are required for very specific data on a specific area. We have never been involved in overall emergence of a shopping centre,” concluded Mahajan.
Brandhouse Retails goes public
Fashion retailer Brandhouse Retails (BHRL), part of S Kumars Nationwide Group, has received permission to list its shares in Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). The shares of the company will be traded from March 27, 2009, according to a company press release.
As per the audited accounts as on March 31, 2008, the turnover of the company is Rs 3.14 billion with a profit after tax (PAT) of Rs 1311 million. For the period April 1, 2008 to September 30 2008, the company recorded a turnover of Rs 2.58 billion with PAT at Rs 748 million.
The company has 5, 19,94,195 equity shares of the face value of Rs 10 each. Of the total equity share capital of the company, 56 per cent is held by the promoters including Nitin S Kasliwal and associates with FIIs’ holding 24 per cent, and the balance is held by the public.
The company runs exclusive brand outlets for the brands including Reid & Taylor, Belmonte, Stephens Brothers, Carmichael House, Escada and Alfred Dunhill.
Recently, the company has signed a JV with Italy’s fashion retailer Oviesse to launch the brand in India.
As per the audited accounts as on March 31, 2008, the turnover of the company is Rs 3.14 billion with a profit after tax (PAT) of Rs 1311 million. For the period April 1, 2008 to September 30 2008, the company recorded a turnover of Rs 2.58 billion with PAT at Rs 748 million.
The company has 5, 19,94,195 equity shares of the face value of Rs 10 each. Of the total equity share capital of the company, 56 per cent is held by the promoters including Nitin S Kasliwal and associates with FIIs’ holding 24 per cent, and the balance is held by the public.
The company runs exclusive brand outlets for the brands including Reid & Taylor, Belmonte, Stephens Brothers, Carmichael House, Escada and Alfred Dunhill.
Recently, the company has signed a JV with Italy’s fashion retailer Oviesse to launch the brand in India.
Grand Galleria opens at High Street Phoenix, Mumbai
Mumbai’s premier shopping destination High Street Phoenix has added a new shopping centre in its vicinity. Branded Grand Galleria, the centre spreads over 60,000 square feet in two floors and houses a variety of fashion apparel and accessories, home décor and furnishings, bath and body, leisure, travel and outdoor merchandise. Further, the company plans to launch two of its upcoming projects in Mumbai and Lucknow soon, informed a top company official.
Speaking to IndiaRetailing, Vinay Menon, centre director, High Street Phoenix, said, “High Street Phoenix has already established itself as one of the best retail destinations in south Mumbai. With Grand Galleria, we look forward to ensure that both retailers and shoppers have the most satisfying and sterling retail experience ever.”
“Grand Galleria has 32 stores in addition to a seven-screen PVR multiplex. The opening of PVR Cinemas and Croma store has added value to it and the footfalls have been increasing tremendously beyond our expectations,” added Menon.
Speaking about the upcoming projects, Menon further disclosed, “We have planned to roll out Mumbai's first luxury destination — Palladium by the end of May this year. Further, Phoenix United, which is being developed in Lucknow, is scheduled to be opened in September this year."
Speaking to IndiaRetailing, Vinay Menon, centre director, High Street Phoenix, said, “High Street Phoenix has already established itself as one of the best retail destinations in south Mumbai. With Grand Galleria, we look forward to ensure that both retailers and shoppers have the most satisfying and sterling retail experience ever.”
“Grand Galleria has 32 stores in addition to a seven-screen PVR multiplex. The opening of PVR Cinemas and Croma store has added value to it and the footfalls have been increasing tremendously beyond our expectations,” added Menon.
Speaking about the upcoming projects, Menon further disclosed, “We have planned to roll out Mumbai's first luxury destination — Palladium by the end of May this year. Further, Phoenix United, which is being developed in Lucknow, is scheduled to be opened in September this year."
DKNY ties up with DLF Brands; plans 28 stores by ’14
Donna Karan New York (DKNY), label of the fashion designer Donna Karan and part of the world's leading luxury group LVMH (Moet Hennessy Louis Vuitton) is entering India through a tie-up with DLF Brands, DLF's wholly-owned subsidiary, reports The Economic Times.
According to the report, DKNY and DLF Brands have entered into a sole franchise agreement under which the latter company will retail the premium brand's apparel and accessories.
The luxury retailer's entry into India is part of its global expansion strategy, having recently forayed into South Korea and China, the report further added.
"We plan to open five DKNY stores over the next five months, and 28 stores over the next five years. Luxury retail is growing at 6-10 per cent year-on-year, and we are meeting our targets set last year,” quoted Kelvin Coyle, MD, DLF Brands in the report.
“Our strategic intent is to introduce 12-15 global premium brands to the discerning Indian consumer over a period of five years by opening 500 stores across top two metros and six cities which account for over 55 per cent of our consumer base," he further added.
DLF Brands has luxury lifestyle labels like Armani and Ferragamo under its stable, and introduced premium brands like Alcott and Sia Home Fashion through similar franchise agreements last year.
Armani, Ferragamo and Boggi are separate joint ventures where the foreign company holds a majority shareholding of 51per cent, with DLF Brands holding the balance stake.
According to the report, DKNY and DLF Brands have entered into a sole franchise agreement under which the latter company will retail the premium brand's apparel and accessories.
The luxury retailer's entry into India is part of its global expansion strategy, having recently forayed into South Korea and China, the report further added.
"We plan to open five DKNY stores over the next five months, and 28 stores over the next five years. Luxury retail is growing at 6-10 per cent year-on-year, and we are meeting our targets set last year,” quoted Kelvin Coyle, MD, DLF Brands in the report.
“Our strategic intent is to introduce 12-15 global premium brands to the discerning Indian consumer over a period of five years by opening 500 stores across top two metros and six cities which account for over 55 per cent of our consumer base," he further added.
DLF Brands has luxury lifestyle labels like Armani and Ferragamo under its stable, and introduced premium brands like Alcott and Sia Home Fashion through similar franchise agreements last year.
Armani, Ferragamo and Boggi are separate joint ventures where the foreign company holds a majority shareholding of 51per cent, with DLF Brands holding the balance stake.
Indians prefer shopping luxury items from abroad: Experts
Indian consumers who avidly shop for luxury goods when travelling abroad turn into guilt-ridden window shoppers back home when they look at the poverty here, fashion experts said at a luxury summit held in the national capital.
“There is a great degree of guilt in the minds of Indian consumer if he or she spends a lot of money on a luxury product because of the depressing conditions around like acute poverty,” said Charu Sachdev, chief executive of TSG International, a company that markets and distributes high-end luxury brands like Moschino and Jean Paul Gaultier in India.
“They feel as if it is wrong to spend so much. This tendency of the Indian consumer is one reason why luxury brands have not really taken off in the Indian market,” added Sachdev.
He further went on saying: “The same consumer when go for shopping on the high-streets of London or Dubai doesn't even ask for a discount.”
"The typical mindset of the Indian consumer, coupled with high rental prices, import duties and low margins have dampened the plans of a number of luxury brand owners in India," concluded Sachdev.
“There is a great degree of guilt in the minds of Indian consumer if he or she spends a lot of money on a luxury product because of the depressing conditions around like acute poverty,” said Charu Sachdev, chief executive of TSG International, a company that markets and distributes high-end luxury brands like Moschino and Jean Paul Gaultier in India.
“They feel as if it is wrong to spend so much. This tendency of the Indian consumer is one reason why luxury brands have not really taken off in the Indian market,” added Sachdev.
He further went on saying: “The same consumer when go for shopping on the high-streets of London or Dubai doesn't even ask for a discount.”
"The typical mindset of the Indian consumer, coupled with high rental prices, import duties and low margins have dampened the plans of a number of luxury brand owners in India," concluded Sachdev.
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