Raghavendra Kamath, Business Standard Mumbai, October 16, 2013 Spencer's Retail, part of the Sanjiv Goenka group, was looking to break even in financial year 2010-11. As the deadline passed, the retailer postponed the target by another 18 months to the second quarter of 2012, only to revise it again. Now, Spencer's hopes to turn profitable at the earnings before interest, depreciation, taxes and amortisation (Ebitda) level by December 2013. Spencer's is not the only company which has fallen behind its break-even target. Saddled with high overhead costs and low margins in a slowing economy, food and grocery retailers such as…
Much has been written about the various relationship break-downs that have happened in the Indian retail sector in recent years. The biggest, most recent high profile ones are between Bharti and Wal-Mart and the three-way conflict playing out at McDonald’s. Other visible ones include Aigner, Armani, Jimmy Choo, and Etam, while Woolworth’s faded away more quietly because, rather than being present as a retail brand, it was mainly involved in back-end operations with the Tata Group. I think it’s important to frame the larger context for these relationship upsets. Most international companies, non-Indian observers as well as many Indian professionals…
Anjana Pasricha, Voice of America New Delhi, October 11, 2013 After waiting for years to open superstores in India, the world’s biggest retailer, Walmart, has split with its Indian partner, delaying its ambitious plans to expand in the country. India opened the door for foreign retailers last year, but tough regulations are proving to be a deterrent, and virtually no foreign chains have come forward to invest in the country’s $400 billion retail sector so far. After parting ways with its Indian partner, Bharti Enterprises, this week, Walmart said it will continue to run the 20 wholesale stores that the…
Raghavendra Verma, just-food.com New Delhi, October 11, 2013 Wal-Mart's decision to terminate its Indian joint venture with the Bharti Enterprises was not unexpected. "The joint venture was like trying to run a three legged race with one leg of each partner tied together," Arvind Singhal, chairman at Technopak Advisors, tells just-food. The two companies operated stores in India under the Best Price Modern Wholesale and Easyday banners. Wal-Mart will now take full ownership of the wholesale business, the US retail giant announced on Wednesday (9 October). For its part, Bharti will operate the consumer facing Easyday retail stores across all…
Farah Bookwala, Moneycontrol/CNBC TV18 Mumbai, October 11, 2013 McCafé is the coffee-house chain owned by McDonald’s Corporation. It has a worldwide presence. Hardcastle Restaurants, the master franchisee of Mcdonald’s in Western and Southern India, will open the first McCafé outlet in India in Mumbai on Monday at SOBO Central Mall. Hardcastle Restaurants is a 100% subsidiary of Westlife Development Ltd, a company listed on the BSE. Hardcastle Restaurants plans to set up around 100-150 McCafé restaurants over the next 3-5 years in metro cities of west and south India. For Hardcastle Restaurants, McCafé represents a host of opportunities. Incremental revenues,…
Geopolitical friction has again sparked renewed concerns over inflation and rising input costs for FMCG companies as @itmeansjustice @whysnavi write. @devangshu commented.
