Reliance Retail scripts mega cash-&-carry plan

Source: Business Standard, Dec 09, 2016

Mumbai: Mukesh Ambani’s Reliance Retail plans to add six times the current number of its cash and carry (wholesaling) stores over the next three years.

The company is planning to set up 300 of these in another three years, to take on the likes of Walmart, Metro and others, said a source. Experts feel with the cost of fitouts, land and construction, they’d need to spend about Rs 4,000 a square ft or Rs 4,800 crore for 300 stores.

This is the second such big expansion by Reliance Retail. It had added hundreds of Reliance Digital stores which also acted as sales and service points for its Jio telecom service.It has 45 cash & carry stores under the Reliance Market brand at present, the average size being 40,000 sq ft. It opened the first Reliance Market in 2011 and has expanded to 37 cities; it claims about 2.5 million members.

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Adidas gets approval for FDI in retail

Source: The Economic Times, Aug 03, 2016

Kolkata: Adidas India has received the government’s approval to bring in foreign direct investment (FDI) in retail through its existing wholesale entity, and won’t have to set up a separate retail company for thea purpose.

The company plans to open 30-50 company-owned Adidas stores in large cities by 2020, and will file another FDI application by this month for Reebok to set up its company stores. Read the rest of this entry »

New FDI rules for single brand retail seen as mixed bag

Source: LiveMint.com, Jun 21, 2016

Mumbai: The government has made it easier for single brand retailers to setup operations in the country with an extended window of eight years before the application of the local sourcing norms come into play. However, for companies like Apple Inc. which were hopeful of getting a complete relaxation of sourcing norms on the grounds that they are a “state-of-the-art” and “cutting-edge technology” company, it is a change in the opposite direction.

Under earlier rules for single brand retail, companies opening wholly-owned stores in India were required to comply with the local sourcing norms of 30% within five years of their first store opening. On Monday, this rule has been further tightened for entities undertaking single brand retail trading and seeking exemption from local sourcing norms will get a waiver only for three years along with a relaxed sourcing regime for five more years.

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Easier Customs norms for IKEA

Source: Business Standard, Apr 29, 2016

New Delhi: Swedish furniture maker IKEA has asked the government for a faster Customs clearance mechanism for smooth business operations as it is gets ready to open its first store in India.The finance ministry has assured the company, which is making the largest foreign direct investment so far in the single-brand retail space, of speedier clearance of cargo at ports to help it save time and cost. The first store will be opened in Hyderabad in 2017.

“IKEA has assured compliance to us and we have assured them time. The company has got into partnerships with the Customs of the 16 countries they operate in for faster clearance of cargo. They want a similar arrangement in India,” said a government official.

The company’s warehouse is coming up near Jawaharlal Nehru Port, east of Mumbai. It would bring in FDI of Rs 10,500 crore.

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Single-brand FDI: Govt to review norms

index.jpgSource: Times of India, Apr 25, 2016

New Delhi: The government is looking to review the requirement for mandatory local sourcing of 30% of the goods sold by overseas players, who have entered India through the single-brand retail window.

The issue has come back to the fore after some global players like H&M flagged their concerns to the government. During a recent meeting with government officials, the Swedish company, which is the world’s second largest fashion retailer, pointed out that India is a large sourcing base for the company to meet its global business needs and the mandatory domestic purchase requirement was a hurdle for players setting up shop in the country.
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Fabindia becomes largest retail apparel brand in the country

Source: ETRetail.com, Jan 19, 2016

MUMBAI: Fabindia Overseas has crossed Rs 1,000-crore sales mark to become the largest retail apparel brand in the country, significantly ahead of nearest rivals Zara and Levi’s India.

During 2014-15, the ethnic wear firm posted a 12% rise in consolidated sales at Rs 1,148 crore with 36% increase profit before exceptional items at Rs 112 crore. Its domestic business grew 25% to touch Rs 767 crore ahead of largest fast-fashion brand Zara that clocked sales of Rs 720 crore during the same period.

“Customers are moving to one of two responses to retail. Either they are responding to products as commodities, or investing in curated products and experiences. We will continue to focus on the quality of our design and curation,” said William Bissell, managing director at Fabindia, which runs more than 205 stores in India. The company also attributes its success to a policy of no discounting and instead build a sustainable cash flow.

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Andhra inks deals, unveils new retail policy

Source: LiveMint.com, Jan 12, 2016

Visakhapatnam:Andhra Pradesh chief minister N. Chandrababu Naidu’s government had a busy and fruitful day at the Partnership Summit in Visakhapatnam on Monday.

It inked deals covering a gamut of sectors—retail, steel and gas, among others, and pledged policy changes that would ensure ease of doing business.The state government signed pacts worth Rs.1,500 crore with Walmart India, Future Group, Arvind Lifestyle Brands Ltd and Spencer’s Retail even as Naidu unveiled a policy—touted as the first-ever retail policy by a state in India—that makes it easier for retailers to do business in the state.

The policy proposes single-desk clearance of business plans, lets stores stay open longer, makes it easier for retailers to acquire land to build warehouses, simplifies labour laws and relaxes stocking limits for essential commodities, among others.

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