Puneesh Garg, Outlook Money 30 May 2012 Following the emergence of modern trade norms in the 1990s, India’s $550 billion to $600 billion retail sector, has been growing at 15 per cent annually. However, in the organised retail sector, which makes up for 8 per cent of overall retail space, the last 6-9 months witnessed a decline in growth. The recent decision by market leader Pantaloon Retail India (PRIL) to sell its controlling stake in the “Pantaloons store” business to a bigger and deep-pocketed Aditya Birla group—which also runs its own fashion stores like Madura Garments—to reduce its ballooning debt…
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Sarah Jacob , The Economic Times Bangalore, 23 May 2012 American doughnut maker Krispy Kreme has flagged off its India plans barely a week after rival Dunkin' Donuts opened shop in the country, setting the stage for a doughnut onslaught in a country that loves pizzas and burgers as much as dosas and pav bhajis. Krispy Kreme Doughnuts, which operates around 700 stores worldwide, signed its first franchisee deal in India with Bedrock Food Company to open 35 Krispy Kreme outlets in North India in five years, the US firm announced last week. New Delhi-based Bedrock also holds franchisee rights…
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ET Bureau, The Economic Times Bangalore, 10 May, 2012 Dutch retailer Spar International and Dubai-based Landmark Group's Max Hypermarkets have decided to part ways in India by the end of this year after the two developed differences over expansion strategy. While Spar was keen on partnering multiple national and regional retailers to expand in the country, Max Hypermarkets wanted a strategic investor for the business, Dr Gordon Campbell, managing director of the 31-billion euro (approx 2 lakh crore) Spar International, said. The companies will now pursue separate growth plans in the country, they said in a joint statement. Max Hypermarkets…
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Fashion United Mumbai, 9 May 2012
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Roudra Bhattacharya, Priyanka Pani, The Hindu Businessline Mumbai, 9 May, 2012 What really went wrong with the way Reebok was run? According to a top North India-based distributor, the franchisee model running for the last few years was flawed. “Some stores were picked on very high rental, so the sales were lower than the cost of running the outlet,” says a distributor, who preferred anonymity. Reebok's contract with the franchisees worked on a minimum guarantee (MG) basis, which meant that to encourage network expansion, a certain income was guaranteed to each outlet, regardless of sales. However, this model had the…
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