Retail
FirstCry: Meet the man behind the baby products business that grew into a giant
Founded by Supam Maheshwari and his colleague from a previous business, Amitava Saha, FirstCry has been the darling of investors which include SoftBank, Tata Sons Chairman Emeritus Ratan Tata, Premji Invest, Mahindra & Mahindra and TPG Growth.
Marketing budgets leap: Slump-hit companies to spend up to 30% more on revival hopes
Companies are hopeful of a recovery in consumption by middle-income consumers, who may be encouraged to purchase premium products aided by income tax rate cuts in the July 23 budget. Another bump is expected from a near-50 auspicious days for weddings in the second half of the fiscal year, said the people cited above.
Top global brands like Marks & Spencer, Walmart and Pepco may boost India sourcing after import duty relief
Brands who may have origins in other countries but have a presence in Australia like Kmart and Target, too are buying large volumes of garments from Tiruppur to take advantage of the India-Australia Free Trade Agreement, said KM Subramanian, president of Tiruppur Exporters Association (TEA). Also, Australian brands like BIG W and Woolworth are placing orders after the FTA.
How DMart plans to take on the quick commerce rivals
Avenue Supermart, India's largest listed retailer by sales and market capitalization, announced that it will focus on discounting and lower pricing to drive growth. The owner of DMart supermarkets emphasized that it will prioritize opening more stores instead of launching an ultra-fast delivery model, despite the rising popularity of quick commerce rivals. This approach is aimed at covering catchments and clusters where quick commerce companies are currently experiencing high demand.
Bankruptcy court admits Kishore Biyani-promoted Future Retail for liquidation
The Mumbai bench of the National Company Law Tribunal (NCLT) has admitted Kishore Biyani's Future Retail Ltd for liquidation due to the absence of a viable revival plan. Sanjay Gupta has been appointed as the liquidator. The company faces liabilities exceeding Rs 28,452 crore, including Rs 14,422 crore from secured creditors.
Nearly 150-200 direct to consumer brands entered offline retail channel over the past two years
About 150-200 direct-to-consumer (D2C) brands have entered offline channels and quick-commerce platforms in the past two years, despite the funding challenges. Since 2016, over 600 D2C brands have launched, receiving $4 billion in investments. The D2C market is projected to grow from $16.9 billion in FY23 to $61.3 billion by FY27
Consumption slowdown is forcing retailers to scale back & shut shop in unprofitable markets
Top retail chains like Reliance Retail, Shoppers Stop, and Spencer's are closing underperforming stores due to prolonged consumption slowdown. Reliance closed 249 stores, Spencer's exited North and South India. Companies are focusing on rationalizing networks and controlling costs to sustain operations amid weak demand and external challenges like heatwaves and elections.
Rel retail's Swadesh stitches up pact with Falguni Shane
Reliance Retail's Swadesh brand signed its first partnership with luxury designer Falguni Shane Peacock. Reliance plans to scale Swadesh with additional stores, selling ethnic handicrafts, clothing, jewellery, and home decor. The company has existing tie-ups with several prominent designers and international luxury labels. Swadesh has stores in Mumbai and Hyderabad.
Budget initiatives will increase disposable income, boost spending: Retail industry
Budget proposals including duty cuts, personal income tax exemptions, and higher standard deductions aim to boost consumption and the economy. MSMEs and women receive finance and infrastructure support. Festive seasons benefit from gold duty cuts. Textile industry gains from imports and foreign investments. EPFO incentives create 50 lakh youth jobs, increasing women's workforce participation.
Quick commerce changes the game: Retail Inc joins Q as India shops by the minute
Indians are buying daily necessities and fast-moving consumer goods more frequently and in larger numbers than a few years ago, with researchers and senior executives attributing this to a growing trend of consumers seeking instant gratification, fuelled by burgeoning quick commerce.
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Retailers including Shoppers Stop, Lifestyle and VMart bet on a flurry of wedding days in second half of this fiscal
There will be about 47 auspicious wedding dates in the second half, three times more than 14 in the first half, they reason. “We are looking at a very strong festive campaign, and weddings will be very, very big as we have somewhere around 50-odd (auspicious) days,” Kavindra Mishra, managing director of Shoppers Stop, said during its first quarter earnings call on Friday. “We believe we have got the right kind of merchandise to be a wedding destination,” he said.
Reliance Retail closes Q1 with fewer stores but footfall goes up by 19%
Reliance Retail Ventures Limited (RRVL) reported an 18.9% annual increase in footfalls in Q1 of FY25, with 296 million compared to 272 million in Q4 FY24. The retail giant added 331 stores, bringing its total to 18,918 with an area under operation of 81.3 million square feet. The company posted an 8.1% increase in revenue and EBITDA, up by 10.5% YoY, due to increased footfalls and store expansion.
Platform Fee Surge: Why Swiggy and Zomato are charging more and how it affects you
Swiggy and Zomato have raised their platform fees to Rs 6 per order in Delhi and Bengaluru, marking a 20% increase. This fee hike, which affects all users regardless of membership plans, is anticipated to significantly boost the companies' revenues. The adjustment has already positively impacted Zomato's stock price. As these companies seek to balance revenue and cost management, consumers will face higher expenses for food deliveries.
Quick fashion on quick commerce? Instamart, Blinkit in talks with top apparel brands
Quick commerce platforms like Blinkit and Swiggy Instamart are in talks with leading apparel and shoe manufacturers like Arvind Fashions, Fabindia, Woodland, and Puma to sell their products to capitalize on the growing fashion business in India's e-commerce industry. These startups aim to exploit the growing fashion business, which is currently the second-largest selling category in India's e-commerce industry after electronics and smartphones.
Retail sales in June 2024 show 5% growth compared to last year
RAI noted a 5% retail sales rise in June 2024 over June 2023. CEO Kumar Rajagopalan cited 7% growth in South India; QSR up 8%. Growth by region: North/East India 5%, West 4%. Categories: food & grocery, sports goods, furniture up 7%. Regions improved vs June 2023. Festival season, favorable monsoon expected to enhance sales.
Tata-owned Infiniti Retail reports Rs 15.89 crore profit in FY24
Tata group's Infiniti Retail, which operates Croma stores and sells electronics and smartphones on Tata Neu and Croma's shopping portals, reported a 25% drop in online sales last fiscal year. The company adjusted its strategy to avoid unprofitable discounting, often used to compete with Amazon and Flipkart. This shift, aligned with Tata Sons' focus on profitability, led to EBITDA breakeven and positive operating cash flow in FY24, with a profit of Rs 15.89 crore compared to a Rs 401.52 crore loss the previous year.
