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Prajakta Ambre | Tue Sep 14, 2010
TAGS: India retail news, Shriram group, TPG, vishal megamart, Vishal Retail, vishal retail sell
off deal, vishal stocks slip, vishal stores

Vishal Retail store in India

On reporting a net loss of Rs. 194.8 million for the past six quarters, Delhi-based retailer Vishal
Retail proposes a sale of its retail and wholesale business to the Shriram Group and the Indian
unit of a global PE investor TPG, respectively for a total estimation of Rs. 100 crore. The
proposed deal may include all fundamental assets and certain liabilities belonging to the
business.

This latest move defined by the retailer is backed by a series of operational losses and struggles
since past two years. However, the company has not confirmed any financial information on the
deal structure, leaving investors amid confusion.

India faced a major slump in 2008 when the winds of recession hit the country adversely,
creating a negative impact in major sectors including retail. Visha Retail had extended its
operations during the slowdown period but due to weaker customer traffic and dwindling
earning, the company faced major liquidity issues. Several counteractive measures like closing
down warehouses and loss- making stores, reducing manpower were initiated by the company to
curtail the losses; however, the retail firm continued to slip down.

Hence, the latest deal is the only hope for Vishal Retail as the company has been striving to get a
strategic mentor to get rid of debt from certain creditors and run the future operations.

Visal Retail also needs to ensure that the company has managed to derive a fair value from the
sale of its two core businesses to be disposed to the respective owners. Once the same activity is
completed, the company is left with only four properties in the domestic regions on Hubli,
Dehradun, Jabalpur and Kolkata. Investors should ideally wait till the Vishal Retail Management
confirms the news.

Stocks of Vishal Retail were trading at Rs56, up 10.13% in a Mumbai market that was up 1.56%
in the early morning session on the first day of the week.

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India is working on a strategic plan for an ambitious growth of its tea industry over the next
seven years.

"The government has directed us to submit by this month-end a strategic plan for the next phase
of growth in the industry during the remaining 11th plan (2007-12) and the 12th plan (20012-
17)," Tea Board Deputy Chairperson Roshini Sen told IANS here.

As the plan will form the basis of the 12th five-year plan from April 1, 2012, the board is
preparing an approach paper for the Planning Commission, with schemes, policy interventions,
financial requirements and investments the industry needs.

"The strategy will focus on production enhancement through re-plantation, rejuvenation, pruning
and infilling, higher productivity in small tea gardens, capacity expansion of green leaf output by
augmenting factories through modernisation and new plants," said Sen.

Though India is the worlds second largest producer of tea (979 million kg in 2009) after China
(1,310 million kg), it ranks 11th in per capita consumption at a modest 700gm per annum.

"With inputs from tea associations and other stakeholders, we are drawing an ambitious vision,
with outcome goals and targets for each year," Sen said on the margins of the 117th annual
conference of the United Planters Association of Southern India (Upasi), which concluded
Tuesday.

With 75-80 percent of the produce consumed in the domestic market, India faces stiff
competition from smaller countries like Sri Lanka, Vietnam and Kenya for a fair share of the
global pie in export markets.

"The industry will have to go for product diversification and dual manufacturing facilities for
Orthodox and CTC (crush, tear and curl) tea, explore value addition and production of instant
tea, decaffeinated tea and specialty tea," said Sen.

Noting that higher investment in research and development (R&D) and technology transfer were
imperative for long-term sustainability and growth, she said to reduce costs across the value
chain, planters, producers and intermediaries would have to go for alternative and cost-effective
processes, especially in packaging and branding.

"To boost exports in the existing and new markets and regain our share in erstwhile markets such
as Russia and Egypt, we are working on branding and promoting Indian tea, especially value-
added tea in overseas markets," Sen noted.
In line with the global trends during the recession-hit 2009, the export performance of Indian teas
was a mixed bag. Though quantity declined by 14 million kg to 192 million kg from 203 million
kg in 2008, the value was higher by Rs.224 crore due to better realisation per unit by Rs.19 per
kg. Total value of exports was Rs.2,617 crore as against Rs.2,393 crore in 2008.

With the global economy turning around and international markets becoming active, the export
trend in the first seven months of 2010 has been encouraging, as the quantum increased by 14
million kg though value realisation declined by Rs.6.30 per kg to Rs.130/kg from Rs.136.60/kg
in 2009.

"Apart from consolidating consumption in the domestic market, which has been facing
competition from soft drinks and retail coffee chains, the industry has to gear up to face tougher
competition from other countries, which are waiting to enter the lucrative Indian market under
Free Trade Agreements (FTAs)," Sen observed.

Besides encouraging organic cultivation and increasing production of green tea, the board is
working on special promotional programmes in key countries under the Brand India Tea
Promotion to boost exports.

Referring to the mismatch between demand and supply in the domestic market, Sen said in
addition to replantation and rejuvenation of age-old plants, the only way the gap could be
bridged was by going for vertical growth - increasing productivity, which declined to 1,700kg
per hectare from 1,739kg/ha during the last five years.

`


Mercedes Benz India to retail exclusive apparel and accessories

By CarDekho Team 14 Sep, 2010 at 15:14:23

Mercedes-Benz India has recently signed a quite different kind of agreement. The company has
entered into an agreement with fashion designer Manish Arora to retail his exclusively designed
apparel and accessories through various Mercedes Benz India outlets all across the country.

Debashis Mitra, director sales and marketing, Mercedes-Benz India commented that the
company¶s connect with luxury and lifestyle has been enhanced through its association with ace
designer Manish Arora. Initially this month, the company had introduced a 3D simulator ride
console, SLS AMG Play Station, for providing a real life experience of driving its new sports car
SLS AMG.

See More Mercedes-Benz SLS AMG Pictures Read More on Mercedes-Benz

SLS AMG

The 3D simulator ride will give customers a real life experience of driving this super sports car.
Now car enthusiasts will get this exclusive opportunity to experience this automobile
masterpiece in all Mercedes-Benz markets across India, stated Mercedes Benz India. With a
price tag of Rs.2 crore, the company had rolled on the premium sports car in July which saw 10
units being booked.

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By John O¶Doherty

Published: September 15 2010 09:27 | Last updated: September 15 2010 09:27

Shoppers are set to suffer from rising clothing costs next year, `" warned on Wednesday, as it
pointed to increased pricing pressure from a combination of manufacturing constraints overseas,
wage inflation and higher fabric costs.

The retailer, which reported a jump in interim pre-tax profit thanks to margin improvements,
predicted that price rises would come in for spring/summer collections that start to hit the stores
in early 2011.

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Prajakta Ambre | Tue Sep 14, 2010
TAGS: Julian Dunkerton, superdry brand clothing, supergroup fashion retailer, supergroup sales,
supergroup stocks, supergroup uk

Supergroup's Superdry fashion brand

SuperGroup, the British company behind the Superdry fashion brand worn by celebrities such as
David Beckham, reported soaring sales, underscoring its status as one of the hottest fashion
labels around.

The retailer and wholesaler, whose shares have more than doubled since a March flotation,
making it the UK's most successful IPO so far this year, said on Tuesday its total sales jumped
59.8 % to 32.8 million pounds ($50.55 million) in the three months to Aug.1, its fiscal first-
quarter.

Founder and Chief Executive Julian Dunkerton, who along with SuperGroup's other
management shared 105 million pounds of the 120 million pounds IPO proceeds, said he is not
expecting growth in sales of its trademark T-shirts, hoodies, check shirts and jogging bottoms to
slow, despite tough macro headwinds.

"I see no reason to believe that we will not continue growing in the nature that we have been
growing," he told Reuters. "Young people have to look good and they will continue to do so I
believe," he said.

SuperGroup, whose clothes are a favourite of film stars Leonardo DiCaprio and Zac Efron,
trades from 49 stand-alone Superdry and Cult stores in Britain and 64 concessions and has a
wholesale business in 34 countries, including the U.S., which is slated to rise to 50 countries over
the next couple of years.
The company has 20 stores a year opening programme and sees scope for 150 Superdry and Cult
stores in UK/Ireland.Although results of UK retailers have generally started to improve
following the recession, many experts think the sector faces a harsh winter as the government
cuts spending and raises taxes to rein in a record public deficit.

Dunkerton was, however, relaxed about the austerity measures impacting his business.

"The (country's economic) problems two years ago were in my opinion far worse than these
(current) problems, I don't particularly feel vulnerable," he said. He is also unconcerned about
rising cotton costs hitting gross margins, arguing the impact will be offset by volume growth.

Separately on Tuesday a survey from the nationwide building society said British consumer
morale rose in August after three months of decline, while Debenhams (DEB.L), Britain's No. 2
department store group, said year profit would be slightly ahead of market expectations.

SuperGroup shares, which listed at 500 pence in March, were down 3.8 % at 1,110 pence,
valuing the business at 830 million pounds, having risen 7 % on Monday.
Freddie George, analyst at house broker Seymour Pierce, described the results as "outstanding",
given tough comparatives and the distraction to shoppers of the soccer World Cup in June.

"Our price target is raised to 13 pounds to take account of the excellent opportunities to grow the
business in the UK through store openings and through on line as well as international
development," he said.

First-quarter retail sales at the firm increased 62.7 % to 22.3 million pounds, driven by new store
openings, while wholesale sales were up 53.9 % to 10.5 million pounds, boosted by strong
overseas growth.

"Group trading is where it should be at this stage and is on track to deliver another successful
year," said Dunkerton.

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Prajakta Ambre | Thu Sep 9, 2010
TAGS: American singer Carrie Underwood, Olay products, Olay Signs Carrie Underwood,
Olay's new ad campaign, P&G Olay, The Procter & Gamble Group
Procter & Gamble is to expand its Olay product range

Carrie Underwood, an American singer will represent Olay's new campaign that includes a line
of skin care products. The campaign will breach in November this year and will be named as
µChallenge What's Possible¶ targeting younger women and persuading them to try the new
product range introduced by Olay, a brand owned by P&G (The Procter & Gamble Group).

"I am so excited to be associated with a beauty brand that has been trusted by women for more
than 50 years," said Carrie Underwood. Inspired by her mother, who used Olay products to take
care of her skin, Underwood said, "I love that Olay has managed to change with the times, yet
stay in touch with women of all ages who want affordable skin care products that do what they
promise."

According to the announcement made by P&G at the Rockefeller Center¶s press conferences,
Olay has signed Carrie Underwood for a two year deal and the singer will appear in the
campaign endorsing two to three new products designed to be launched in the course of next
year. The brand will also endorse the fall dates of Play On Tour, Underwood¶s next country
music album.

Procter & Gamble is all set to expand its Olay product range and has future plans to serve the
needs of men. P&G also aims to maximize its global reach from 69 to 100 markets in two years.
Shares of P&G dipped on Wednesday by 23 cents in the first half of the trading session.

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BY: n.namazi | Thu Sep 9, 2010
TAGS: Jimmy Choo, McKinsey & Company, online luxury shopping, retail business, retail
business in Japan

Japanese shoppers

Japan is renowned as the mecca for luxury goods. But now, Japanese consumers are now feeling
the pinch thanks to new tastes and a super strong yen. Due to this, sales in traditional flagship &
department stores are declining. Online shopping for luxury goods has, however, increased.
Along with this, shopping at U.S.-style outlet malls in Japan is also soaring.
According to a recent survey by McKinsey & Company, premium outlets in Japan today account
for 23 percent to 29 percent of purchase frequency in luxury fashion apparel and leather
goods/accessories. Steep cuts in highway tolls have helped further. Mostly, Japanese consumers
are tired of paying high prices in traditional shopping districts when the same products can be
purchased online at discounted rates.

With the yen now hovering at 83.9 against the dollar, Japanese consumers are increasingly
discovering that it does not appeal to them to pay the ³Japan premium´ for goods that can be
found inexpensively online and overseas.

Some examples: a pair of fierce Jimmy Choo Feline elaphe snakeskin trim sandals cost 131,250
yen in Tokyo, or $1,572 at the current exchange rate. The same pair in the U.S. costs $1,095.
Prada¶s leather bow pumps are 73,500 yen in Japan, or $880, compared with $650 in the U.S.
Abercrombie & Fitch¶s men¶s McLenathan Bay sweater sells for 25,000 yen, or $296.42 at the
current exchange rate. In the U.S., the same sweater costs $170.

The Japanese shopper is tired of being ripped off and now feels that buying online or shopping in
the U.S is a better proposition for them.

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Prajakta Ambre | Fri Sep 10, 2010
TAGS: McDonalds, Mcdonalds august sales, Mcdonalds Europe, Mcdonalds restaurants,
Mcdonalds stocks, Mcdonalds' sales rise
McDonald¶s sales rise by 4.6% in August

McDonalds has come a long way since the time the biggest fast-food maker of the world
introduced products like frappes and fruit smoothies to the US customers. MacDonald¶s sales
figure hiked by 4.6% on the back of the revenues earned on the launch of its new foods.
However, analysts had expected even better results for the company.

Sales figures for the McDonalds restaurants in the European region went up by 2.2% on strong
results in Britain and Russia. Surprisingly, stocks of the company saw a 2.3% decline on
Thursday taking cues from the weakening Europeans shares. There are assumptions that
reduction of value-added tax on restaurant meals in 2009 in the France province played a key
role in pulling down McDonalds stocks in the Europe region as sales growth in every other
country is steady.

McDonalds reported 4.9% growth (the biggest increase in the gains since April 2009) in the sales
figures for its restaurants set up across the world.

McDonalds¶ sales in the Asia-Pacific, Middle East and African regions grew by 7.8%.
Conversely, sales in the same regions had seen a 0.5% drop in the previous year. Australian,
Japan and China region sales have given a sparkling performance on the back of the McDonalds'
food items in the respective countries winning strong local response on the parameters of taste
and flavor.

However, the company has not yet declared any revenue figure and has tentative plans to release
its 3Q results in the next month.
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Prajakta Ambre | Fri Sep 10, 2010
TAGS: Amway global, Amway Health & Beauty Brand Experience Centre, Amway India,
Amway news, Amway products

Amway

Amway India Enterprises Pvt. Ltd inaugurated its 1st Health & Beauty Brand Experience Centre
of Gurgaon and 10th in India. Situated at MGF Mega City Mall, MG Road, Gurgaon, the centre
offers a unique touch & feel experience of Amway¶s Health & Beauty products.
The Brand Experience Centre enhances brand visibility and awareness of Amway¶s products by
offering consultancy on health and personality related aspects such as nutrition, fitness, wellness
and beauty.

This Brand Experience Centre is the part of plush new upgraded Amway Touch Point, spread
over 17000 Sq Ft which has a capacity to train over 100 people at a time. The brand centre is
equipped to provide skin assessment and consultancy from Skincare expert. A nutritionist will
offer consultancy on Nutrition and fitness regime.
Addressing media persons post the inauguration, Mr. William S. Pinckney, MD & CEO, Amway
India, said, ³Amway will focus on four key strategic pillars to drive growth ± business
excellence, the consumer experience, the distributor experience and products & brands. This
Brand Experience Centre will communicate Amway products¶ feel, features and values through
live demonstrations and unlimited training to business owners and consumers.´

The centre also displays all the products in Personal care, Homecare, Cosmetics & Health &
wellness categories. The Skincare experts at the centre will examine the customers¶ skin type and
suggest products to help them come over their problems regarding their skin.

These tests are conducted with tried and tested high end one of kind equipments. These
equipments help to locate the affected area on the skin for example, pigmentations, sunburns,
blackheads etc. The skin care experts not only identify the effected skin but also suggest the
suitable products and diet to overcome the problem.

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Prajakta Ambre | Sat Sep 11, 2010
TAGS: Argo, Home and DIY, Home Retail, Home Retail Group, Home retail summer sales,
home stocks, Homebase
Home Retail Group

Home Retail Group, the catalogue retailer pointed out that the demand for both furniture and
video games have fallen by nearly 5% in the first half of FY10. Customers have been averting
big purchases since the summer season and decline in the customer traffic for summers may push
the profits 20-25% down than the previous year.

The Home Retail Group also owns DIY retailer Homebase, which saw sales ending flat in the
summer time. According to a statement made by Terry Duddy- CEO of the Home Retail Group,
the sale figures at Argos in the second quarter were better than the first quarter as the markets
were more challenging during that time. ³We¶re getting a great response from customers,´ Mr
Duddy said, but declined to compare performance at refreshed and old stores.

However, Nick Bubb at Adren Partners was of the opinion that the customers are still not very
confident about spending huge amounts of money for furniture and other household commodities
as the global economy is still recovery and the fear of double-dip recession has not yet been
eroded completely.

Hence, house retailers have decided to wait and watch till the year end as there are hopes
amongst the retailers that the current trend may change once the year commences further.

At present, the Home Retail Group plans to achieve a neutral position at the end of the year as far
as liquidity is concerned with intentions to retain the dividend of 14.7p.
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BY: n.namazi | Mon Sep 13, 2010
TAGS: Global Investor Series, Pimco, Pimco Select, UK retail, UK retail market

Pimco

Company officials have said that the launch of Pimco Select is a noteworthy strategic move into
the UK retail market. Pimco has entered into an initial agreement with Aegon as the first phase in
a series of tie-ups with distribution partners.

The range comprises of Pimco Select Global Bond fund (to be taken care by Scott Mather) and
the Pimco Select UK Corporate Bond fund (managed by Luke Spajic).

Both funds will mirror those available on Pimco¶s Dublin-based Global Investor Series (GIS)
platform - a complex comprising 38 sub-funds with £32.6 billion in assets under management.

Pimco Select Global Bond will proffer investors exposure and know-how to global fixed
income«.Global fixed income is a segment which can be tricky for individual investors to
access straightforwardly, Pimco says.

The Pimco Select UK Corporate Bond is a diversified portfolio. The goal is to produce a better
yield and total return on corporate debt and credit, as compared with government securities.

Managing Director and Head of British Business at Pimco, Joe McDevitt, says that the launch of
Pimco Select is a crucial development in expanding the firm¶s investment management expertise
and strategy.

The company aspires to increase more funds to the Select range in the near future. Same-day
pricing will be allotted to all funds.
Pimco said it will focus on its presence in Britain¶s institutional market, and embrace a strategy
to forge partnerships with prominent insurance and pension fund companies and platforms.

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BY: s.dutta | Mon Sep 13, 2010
TAGS: Bhatinda refinery, Bokaro, CNG option, GAIL India, Hindustan Petroleum Corporation,
HPCL, Maharashtra Refinery, Mundra-Delhi pipeline, Oil India, retail outlets, Total of France
and Saudi Aramco, Vizag

HPCL logo
Hindustan Petroleum Corporation is all prepared and ready to set a mark in the retail sector with
aggressive retail strategy that will help it rise high in the coming years.

³By 2020, we would like to see our market share reach 30 per cent from the present level of 20
per cent. If we do not grow at the pace needed, we could be in all kinds of trouble,´ Mr S. Roy
Choudhury, Chairman & Managing Director, said.

In Bihar, at present, HPCL's market share is barely 10 per cent because it has no infrastructure
facilities of its own. However, changes will creep in soon and for the better. ³We are now putting
up a Rs 100-crore ultramodern terminal and believe that we can grow by 25 per cent almost
overnight as a result. Bokaro is another case in point where we have no facilities but are now
remedying that by setting up a huge terminal,´ he said.

Similarly, the oil major's retail presence is almost nil in 200 districts despite the fact that it has in
its belt 9,000-odd outlets. ³Infrastructure will be a key growth driver and we will earmark Rs
3,000 crore annually for putting up retail outlets, pipelines, terminals and depots,´ Mr Roy
Choudhury said.

An important ingredient of this growth plan will be the nine-million-tonne Bhatinda refinery
scheduled for commissioning in 2011-12, which will give HPCL a boost in the north and cater to
important markets in the region. The ball was set rolling by the Mundra-Delhi pipeline, which
has already achieved five million tonnes in the first year of operations when this was a goal set
for 2016-17.

³We can take products to different parts of the country with the Bhatinda refinery, which means
reallocation of resources. This explains why we are putting up a host of support facilities in these
parts of the country,´ he said.

On the refining front, the other top priority is the new 15-million-tonne Maharashtra Refinery on
that could be commissioned between 2016 and 2020. This will eventually replace the six-
million-tonne Mumbai refinery.

HPCL is also keen on revisiting the exploration and production space where it has maintained a
low-key presence thus far. ³Another area, in which I believe we have lost a little pace, is non-
participation in the gas business,´ Mr Roy Choudhury said.

³We have formed a gas division and we could even look at infrastructure and then get a partner
for sourcing gas. We are going to be a key player in the gas segment, especially with 9,000 retail
outlets which need a CNG option,´ he added. ³Gas, infrastructure development in gas and
sourcing would be top priorities for HPCL. We could even look at gas exploration in the near
future though it is too early at this point,´ Mr Roy Choudhury said.

The oil major along with GAIL (India), Oil India, Total of France and Saudi Aramco is planning
to revive the $8-billion refinery-cum-petrochemicals project at Vizag. ³The next six months will
see us streamline things and put everything on track. This is a company in a hurry which just
cannot afford to slow down,´ he said.

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BY: n.namazi | Wed Sep 8, 2010
TAGS: British Retail Consortium, food prices, food prices increase in UK, food retail news

Food retail outlet

British Retail Consortium (BRC) reported that U.K. food prices have rapidly increased in August
this year mainly because manufacturers passed on higher commodity rates.

The BRC said in an e-mailed statement today in London that food prices rose an annual 3.8
percent, up from 2.5 percent the previous month and the most since July 2009. It further cited a
survey by Nielsen. Shop-price inflation also accelerated to 1.7 percent from 1.5 percent.

Food prices are increasing as producers pass along higher costs of raw materials, the BRC said.
Wheat prices have increased as high as 53 percent in the last three months. Price rises may be
restricted as consumers tighten budgets before the government¶s well-intended spending cuts and
shops reduce prices to entice customers.

³As shoppers return from their summer holidays, many will review household budgets again. We
can expect to see retailers putting together some strong autumn promotions to tempt shoppers.´
Mike Watkins, Senior Manager of retailer services at Nielsen, said in the statement.

British Retail Consortium¶s measure of shop-price inflation was held down by a smaller increase
in the price of non-food items. In August, yearly inflation in those products eased to 0.5 percent
from 1 percent in July, the statement said.

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BY: n.namazi | Tue Sep 7, 2010
TAGS: British Retail Consortium, rise in retail sales, U.K. Retail Sales, UK retail
U.K. Retail Sales: Increase in August

There has been an increase in shoppers purchasing school clothing and footwear for the new
academic year. Owing largely to this, retail sales in the U.K. significantly increased in August.

The London-based BRC said in an e-mailed statement that sales at stores rose 1 percent from a
year earlier, compared with a 0.5 percent gain in July. Sales of non-food items via the Internet,
mail-order and phone companies climbed 18 percent.

According to a report published last week, consumer confidence got better for the first time in
six months in August after the economy expanded in the second quarter by the most in nine
years. This revival is threatened by the budget squeeze looming as Chancellor of the Exchequer,
George Osborne, cuts spending by the most since World War II to handle the record shortfall.

Stephen Robertson, director general of the BRC said in a statement, ³The good news is sales are
still growing. Anxiety about job cuts and tax rises is putting people off making major spending
commitments.´

In August this year, GfK NOP Ltd.¶s index of consumer sentiment rose 4 points to minus 18
though its gauge measuring the climate for major purchases dropped 4 points to minus 20.

The BRC report is assembled together with accountancy firm KPMG LLP. The report measures
alterations in the actual value of retail sales and does not fiddle with price changes.
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Prajakta Ambre | Mon Sep 6, 2010
TAGS: Dalton Phillips, Morrison launches online food service, Morrisons, Morrisons UK, online
food launch, online food service, online food stores, the UK markets, UK's retail sector

Morrisons plans to set up online grocery stores

Morrisons, one of UK¶s top food producers has a new business strategy that will aid Morrisons
to move into a more advanced space in the coming future. Morrisons plans to expand its services
and set up a chain of online grocery stores for customer¶s convenience. Dalton Phillips,
Morrisons¶ new CEO is striving to capture the opportunities available in the online retail arena to
eventually promote Morrisons¶ services and brand name to the next level.

Analysts have greater expectations from Dalton Phillips as they are clear about the kind of
approach Phillips should take to expand Morrison¶s operations. At present, Phillips is making
some managerial changes that can help Morrisons to lay focus on the development of small
stores, introduction of the non-food range commodities and improve its home delivery services.

Morrisons¶ shares have been trading in high volumes and have a better scope to move on top in
the coming future. However, investors have opted to remain cautious before investing their
equities in Morrisons shares.
Morrisons¶ core business is to provide top quality, fresh foods across the UK markets. The
company owns 13 manufacturing sites and runs more than 400 stores in the UK with 13
distribution centers. Morrisons¶ recent product launch Simply Fresh Foods offers freshly-cut,
stir-fried, cooked-in-advanced kind of veggies that can be utilized to prepare direct meals.

Buying food online is certainly a new concept and has worked for many customers and regular
grocery shoppers as it offers a prime facility of timely delivery. Moreover, the customers can
also browse the online store and pick up what they need.

From retailers¶ point of view, online food launch is a fresh trend and many food retailers are
adopting the same to remain more competitive in the online food market. The online food market
service helps customers to shop for their required groceries online and fix deliveries suitable for
their schedules.

Morrisons' industry rival, Amazon has already launched similar kind of services for their well-
expanded customer base.

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BY: p.ambre | Sat Sep 4, 2010
TAGS: Carrefour, Carrefourstore sale, Carrefour¶s south-east Asian assets, retail market news,
retail news, Tesco, Tesco auction, Tesco bids for Carrefour, Walmart

Tesco: Bids for Carrefour¶s south-east Asian assets

UK¶s retail giant Tesco is among the pack of 10 bidders for a sale on south-east Asian assets put
up by France-based supermarket enterprise Carrefour. Carrefour¶s assets are set up in the regions
of China, Japan, Malaysia, Thailand, and Singapore. The auction comprises of 61 Carrefour
stores spread across Thailand, Malaysia and Singapore.

Besides being a retail market leader of the Thailand and Malaysia markets, Tesco has a major
plan of adding up to 460,000 square meters of new space for the upcoming stores. The new move
made by Tesco indicates that the supermarket giant is in the expansion mode. Stocks of Tesco
made considerable improvement after the bidding news was out. However, no comments have
been made on Tesco¶s front up till now on the post-auction plans.

To the analysts¶ surprise, Wal-Mart, the biggest retailer of the world has remained out of the
auction by choosing not to intervene in the first round of the bidding war. While, Tesco¶s other
rivals like Singapore-based Dairy Farm, Casino and Japan-based Aeon have pitched for auction.

The auction deal may achieve the target price of between $800m and $1bn for Carrefour.

The reason behind Carrefour¶s 61 store sale is to withdraw investments made in the other regions
and focus on the core business activities as the group is planning to curb the growing expenses
required to sustain the out-of-region operations.

The company has already moved back from the southern Italy province and extraction from the
Portugal region has been the next step. At present, Carrefour aims to focus on regions where the
company is already leading the markets and has greater prospects to count on.

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Prajakta Ambre | Sat Sep 4, 2010
TAGS: growing retail sales in US, tax-free discounts, tax-free holidays, US fall season sales, US
retail sales, US retail sector news, US retailers
US retail sales boost as tax-free holidays return

The retail sector in the US got a major boost in the month of August as consumers returned to the
malls with new shopping plans on tax-free holiday discounts for around seventeen days in
August made available to them. Americans have started shopping again in order to prepare for
the upcoming holidays.

On the back of the sagging retail sales in the months of May and June, the US retailers went
through a tough time during the summer term. The summer season retail sale was affected by
uneven customer traffic and discouraging economic condition. However, discounted holiday
season has lured shoppers to visit their local malls giving retailers a big reason to smile.

Most retail brands and shore chains booked profits beating analysts¶ estimations on the retail
sales. Limited Brands Inc. sales rose by 10% in the month of August while sales at Kohl¶s Corp.,
mounted up by 4.5%. According to another projection made by the analysts, sales at the Same-
store, the departmental chain were believed to see a raise of 2.8% while the actual sales grew by
3.5% beating analysts¶ anticipation.

Sales for the fall season are showing upbeat figures than the summer sales giving retailers an
opportunity to gear up their endorsement plans. On the back of these gains, major retailers have
started kicking off their promotion campaigns to fetch more and more customer traffic eyeing the
holiday season filled with discounted days and unlimited fun.
Better-than-anticipated growth of 5.2% in US home sales in the month of July, drop in the
jobless claims figures and the retail sector¶s growth were the main reason behind the positive
outcome induced by the US stocks on Friday. Optimistic figures on housing market, employment
sector and increasing factory orders gave a strong push to the US economy lifting up the investor
sentiments.

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BY: n.namazi | Fri Sep 3, 2010
TAGS: American Chambers of Commerce in India, Bharti-Walmart, FDI, retailers

Retailers say yes to FDI

American Chambers of Commerce in India has fully supported the FDI. It stated that this move
would benefit domestic and foreign players both. However, it recognized the significance of a
phased change of allowing the first step of 49% FDI.

US-India Business Council believes that stipulating a 50% investment in backend infrastructure
would not be sensible. It said, ³Investment should, and will, happen because of its commercial
necessity on an ongoing basis. Mandating a fixed investment amount may encourage under-
investment during initial infrastructure development when a relatively high level of resources are
required, and also may encourage a mis-allocation of resources as maintenance of infrastructure
is required."
The Council believes that such a move could dis-incentivise infrastructure investment by
suppliers, thus limiting the total investment.

The Kisan Jagriti Manch, on the other hand, states that it is imperative to study the agricultural
sector involving farmers group. This is a must for the permission of FDI in multi brand sector
(particularly in the food market).

"As the country is comfortable in foreign exchange reserve which was $283.5 billion in Dec
2009 and indigenous technology is available for the creation of storage facilities and the fact that
there are no conclusive reports of the impact of FDI on inflation control as well as increase in
farmer's profit., there is no urgency for FDI," stated the Manch.

The idea that foreign investment for retail stores be allowed only in cities with population of
more than 10 lakhs (2001 census) was also suggested. On this, retail major Bharti-Walmart
stated that retail should be permitted in the roughly 200 cities with a population greater than 2
lakh (200,000). This would lead to the protection of the kiranas in smaller cities and rural India.
It also suggested a few changes such as abandoning Shopping Mall Regulation and using FDI to
enhance the Public Distribution system.

It said, "In case a mandate is absolutely necessary, a minimum threshold limit of a $100 mn over
five years be fixed for the food category. There should not be any stipulated limit for the non-
food category."

It added, "More than 50% sourcing should be local in order to develop India's industry. Foreign
and domestic retailers engaged in multi-brand retailing should be treated equally in any policy
designed to enhance sourcing from the SME sector."

Confederation of Indian Industry also gave an assenting nod for FDI in multi- brand retail. It
said, ³In order to balance the interests of various stakeholders the initial cap on investment could
be pegged at (i) 49% under the automatic route and (ii) 74% under the approval route. In order to
ensure that only serious investors are encouraged, we may like to put some restricting conditions
around exit (say minimum lock in period as 3 years). These conditions should apply irrespective
of whether the foreign investment is being received in the food or the non-food category."

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BY: n.namazi | Fri Sep 3, 2010
TAGS: department stores, luxury fashion brand, online retail store, Zara
Zara

Zara already sells a home range online but the website will now also offer fashion lines that was
previously only available in their stores.

Reports say that due to fears of a decline in High Street spending, the company took the decision
to move into cyberspace. The confidence among consumers is fading and many fear a further
economic slowdown. However, online sales have enhanced in time.

Internet trading for the company¶s rival µNext¶ saw a rise by 7.8% in its home shopping business.
Furthermore, for Asos, the online market leader, sales rose 54% during the January-to-March
quarter of this year.

It has been observed that online retail sales have enhanced in time as a number of people have
access to high-speed internet connections. Industry experts say that shoppers pressed for time
now make the most of shopping from home or work.

Internet shopping is expected to grow to £94bn ($144 bn) in Western Europe by 2014, from
£56bn in 2009, according to consultants Forrester.

But online sales encompass only a small proportion of total sales. According to the Office for
National Statistics, only 8% of total sales in July were made online in UK.
According to Jeremy Baker, professor of marketing at the ESCP business school, "Shops that
don't have an online presence have noticed rival stores enjoying a dramatic increase in online
sales, while their sales in shops have been pretty flat,"

Zara's online shop will soon be followed by H&M's online shop, which will go live on 16
September. "There is clearly demand for Zara product online," said Simon Chinn, retail
consultant at Verdict Research. "It will comfortably complement its extensive store estate,
adding an extra level of service for its customers."

Online retail sales will double in next three years. Inditex, Zara's parent company, has surpassed
Gap as the world's biggest clothing retailer by sales. Inditex chief executive, Pablo Isla, said:
"Customers should expect the launching of online selling for the group's other brands in coming
years."

Zara is hoping to see a 10% growth in revenue with the opening of its online store.

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Prajakta Ambre | Tue Aug 31, 2010
TAGS: Cairo, M&S, Marks & Spencer, Marks & Spencer products, Marks & Spencer store in
Egypt, UK, UK¶s leading retail chains
Marks & Spencer: Plans to open a store in Egypt

The Marks & Spencer Group (M&S), the leading retail chain of UK that offers products like
clothing, foods and home ware declared its plan to open a first-ever store in Egypt¶s capital
Cairo. Marks & Spencer will join hands with the Al Futtiam Group to open up a 2,600 meter
shop at Cairo¶s Dandy Mega Hall shopping center. The store will offer fashion, beauty and home
products.

Another store will open in Cairo Festival city shopping mall by 2012, which will be a two-floor,
4,400 square meter mega store with variety of custom Marks & Spencer products.

The company has set up operations in about 41 countries including India and China across the
world and is in the expansion mode. With UK being its key market, Marks & Spencer is listed on
the London Stock Exchange and its stocks are performing well. The London headquarters of
Marks & Spencer holds 75,000 employees.

Marks & Spencer has a worldwide presence with 339 international stores while 693 stores in UK
alone. After reporting international sales of GBP949.4 million in the FY10, the retailer has major
plans to recreate and sustain its image of the largest global retailer by establishing more and
more stores in different regions of the world.
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BY: n.namazi | Tue Aug 31, 2010
TAGS: Indian retail company, Indian retail news, Pantaloon Retail, Shoppers Stop

Pantaloon Retail

The June 2010 quarter results for Pantaloon Retail¶s reflected a strong lift in the same store sales.
The company achieved a higher margin in lifestyle retailing together with buoyant sales in the
home retailing sector. But a high valuation implies that investors do not have much to look
forward to.
With retail stocks such as Pantaloon Retail, investors have been quite bullish. The company¶s
retail stock touched a 52-week high of Rs 531.25 in mid-July this year. On Monday, though, the
stock ended 1% lower at Rs 468.8.

Store sales growth is a key parameter in the retail industry. So far, the company¶s store sales
growth at 19.4% of its lifestyle segment for the year and 57% for home retailing during the June
quarter were the highest during the past three quarters. However, Pantaloon¶s performance was
better when compared to its competitor, Shoppers Stop which had posted 14% growth earlier in
like-to-like sales from its stores that are more than 5 years old.

To help enhance its offtake for higher margin electronic products like flat panel TVs and
cameras, Pantaloon had organized promotional events at its eZone outlets which considerably
improved its June quarter sales growth.

This well-thought marketing strategy has helped Pantaloon Retail¶s core retail business expand at
a strong 50% to Rs 2,493.7 crore in the quarter. Its EBITDA (operating profit inclusive of other
income) during this period grew at 57.8%. The net profit for the quarter jumped 170.9% to Rs
98.8 crore.

Bearing in mind the company¶s overall business which encompasses the latest transfer of value
retail business to its wholly-owned subsidiary, Pantaloon¶s net sales were up 91.2% in the
quarter under review, while EBITDA increased 55.1%.

The fundamental challenge for companies in the retail sector such as Pantaloon is to retain its
sales growth tempo especially now when food inflation has been close to double digits resulting
in a negative impact on consumer spending.

At Rs 468.8 per share, the Pantaloon Retail (India) stock trades at a P/E of more than 50 times on
a consolidated basis - this amply points out the growth opportunities over the medium term.

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TAGS: ebay campaign in UK, ebay's advertising during Christmas, eBay. ebay's advertising
campaign, online Fashion Outlet, online retail market
eBay's online Fashion Outlet

The online retail market is becoming highly competitive as many e-commerce and e-auction
websites are struggling to grow in the same space. eBay will kick-off endorsing its Fashion
Outlet though advertising billboards put up at several popular locations across the UK. eBay is
planning to expand its operations by encouraging consumers to shop from their online Fashion
Outlet, especially during the Christmas season.

eBay¶s advertising campaign in UK will be the biggest one in its 11-year history as eBay has
targeted big clothing and fashion brands from UK with huge potential to lure shoppers. eBay
hopes to make gains by cashing on the customer¶s seasonal shopping spree spirit and remain
competitive amongst other players.

Experts have noticed that the online fashion markets have a tremendous scope for growth as
shoppers are increasingly buying online to save time. Advertising and promotion of such online
fashion destinations can help boost the sales of the respective companies as they fulfill
customer¶s demand by providing a wide range of high-quality material at reasonable prices.
Customers can browse for as many options as they can and pick up products displayed by their
favorite brands.

eBay launched its Fashion Outlet in the month of May this year and earned revenues around
£4million for the branded goods they sold through their website. Around 4.6 million shoppers
purchased branded items and fashion products from eBay¶s website within three months since
the launch.

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TAGS: 3G Capital, brazillian investors, Burger King, Burger King buyout deal, hamburger chain
in US, Jorge Paulo Lehmann, McDonald, world¶s second-largest fast food chain

Burger King's superlarge burger

The second biggest hamburger and fast food chain of the world - Burger King Holdings Inc., is
discussing a buyout deal with 3G Capital, the investment managing firm from Brazil. Shares of
Burger King soared by nearly 15% on NYSE after the news of Burger King¶s move to go private
was published by the New York Times.

If the buyout takes place, then the Burger King will get an opportunity to reform its relations
with the franchisees and deal with them in its own way. Burger King is yet to outperform its rival
McDonald¶s corp. in the US as McDonald¶s shares have been climbing up since it acquired the
top position and became popular worldwide.

However, the buyout activity is undergoing negotiations and may not lead to transaction as
Burger King¶s discussion with 3G is still in progress.

Miami-based Burger King was owned by big players like TPG, Bain Capital and Goldman Sachs
for four years till 2006. After going public in 2006, the shares of Burger King have soared. The
market capitalization of the company is worth $2.24 billion with more than twelve thousand
restaurants put up across the world.

While 3G Capital, the potential bargain hunter of Burger King is a New York based firm that has
an extended setup in Brazil, which is backed by many Brazilian investors including billionaires
like Jorge Paulo Lehmann, owner of world¶s biggest brewer and former investment banker. 3G
already owns about 1% stake of the third-largest fast food chain in the US - Wendy/Arby¶s
Group Inc.

Burger King is certainly struggling to stay at the top in market but MacDonald¶s monopoly that
have gone stronger during past few years is difficult to erase and has posed a direct challenge to
Burger King. Nonetheless, Burger King is performing better than Wendy/Arby¶s, a group which
is struggling to keep up in the current economic condition.

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TAGS: e-commerce, Gap Inc., Glenn Murphy, global, growth, initiatives, Old Navy, Sales
Gap Inc. reports EPS growth

On Friday, Gap Inc. reported earnings per share for the second quarter, which ended July 31,
increased 9 percent to 36 cents per share on a diluted basis, compared with 33 cents per share on
a diluted basis last year. Net earnings grew 3 percent to $234 million compared with $228
million for the second quarter last year.

³Our economic model helped us deliver both sales and earnings growth for the second quarter,
while we navigated some challenges along the way,´ said Glenn Murphy, chairman and chief
executive officer of Gap Inc. ³Looking forward, we¶re committed to our strategy of growing
sales and market share in North America as we also invest in our long-term global and online
growth initiatives.´

In the second quarter, Gap Inc. expanded its e-commerce reach from one country to 55 through
international shipping, making Old Navy available for the first time to customers outside of
North America. In addition, the Company expects to launch dedicated e-commerce sites this
month in Canada and the United Kingdom. By the end of the year, the Company expects to have
stores in China, Italy and Australia, which combined with its expanding online and franchise
operations, will reach customers in a total of about 80 countries.

Second quarter net sales were $3.32 billion compared with $3.25 billion for the second quarter
last year. The Company¶s second-quarter comparable-store sales increased 1percent compared
with a decrease of 8 percent for the second quarter last year. The Company¶s online sales for the
second quarter of fiscal year 2010 increased 15 percent to $258 million compared with $224
million for the second quarter last year.

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On Monday Apple announced that on Friday, July 23 the iPad will be available in nine more
international markets including Austria, Belgium, Hong Kong, Ireland, Luxembourg, Mexico,
Netherlands, New Zealand and Singapore. Both the Wi-Fi and 3G models will be available in
these regions at launch, and pre-orders have not yet been announced for either model. Instead,
customers will have to line up on launch day to get their hands on Apple's new popular
innovation. Apple also did not announce any official pricing for the new iPad regions.

Apple said in its announcement on Monday that the Company also plans on releasing the iPad to
"many more countries" throughout 2010. So expect to hear more announcements including local
pricing and availability in the next few months. The iPad is already available in the U.S. and
Canada, Australia, France, Germany, Italy, Japan, Spain, Switzerland and the U.K.

In May, Apple said it had sold two million iPads during the first 60 days of the tablet device's
availability in the U.S. and other countries around the world. The company has not announced
iPad sales since then, but that is likely to change on Tuesday when Apple announces its third
quarter financial results for 2010.

Monday's announcement by Apple comes on the heels of a press conference on Friday regarding
recent iPhone 4 antenna fiasco that has spoiled the company's image over the past few weeks. On
Friday, Apple CEO Steve Jobs announced that any iPhone 4 customers experiencing signal loss
would be provided a $30 bumper case free of charge in an effort to remedy the iPhone 4 antenna
issue. As an alternative, new iPhone 4 owners may also return their phones to Apple for a full
refund.

Both offers will expire on September 30, but they could be extended if Apple deems it necessary.
Apple also reiterated on Friday that it plans on launching the iPhone 4 in 17 more countries by
the end of July.

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On Friday, Wal-Mart Stores Inc. announced its plans to initiate electronic tags to keep track of
individual garments like jeans and underwear, in a move that would help the retail giant control
its inventories better, the Wall Street Journal said.

Beginning in August, Wal-Mart will place removable radio-frequency ID tags on individual

garments that can be read by a handheld scanner, the Journal said.
The tags will help Wal-Mart workers to better pinpoint items, which can easily be shop-lifted,
that are missing from the shelves.

The aim of rolling out the electronic tags is to ensure shelves are optimally stocked and inventory
is looked after a little more closely in an effort to beef up security.
If successful, the electronic tags will be used for other products at Wal-Mart's more than 3,750
stores located throughout the country.

"This ability to wave the wand and have a sense of all the products that are on the floor or in the
back room in seconds is something that we feel can really transform our business," Raul
Vazquez, the executive in charge of Wal-Mart stores in the western United States, said in a
statement.

Electronic tagging has been an emerging market, and awareness is growing internationally of the
efficiencies and cost savings that can be achieved by adopting these new tag technologies
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Toyota has announced that it plans to introduce its new line of fuel efficient vehicles in 2012 in
an effort to keep up with the ³going green´ phenomenon.

The company said that it plans to introduce three new-to-market green vehicles in 2012,
according to a company source.
A battery electric vehicle, a plug-in version of the Prius and a soon-to-be unveiled variant of the
Prius will arrive in U.S. dealerships in the first half of 2012, said the source, who spoke on the
condition of anonymity because he was not authorized to speak publicly about the plans.

The second Prius vehicle will begin the creation of an ongoing family of vehicles that will carry
Prius badging but will not be a separate brand. The battery electric vehicle probably will be
similar to the electric version of the iQ, which Toyota unveiled at the 2009 Detroit auto show.

Toyota may sell the electric vehicle only in certain markets that provide sufficient infrastructure
to support the vehicle. It plans to track those markets' sales and infrastructure progress on their
Web site, www.toyota.com/esq.

Toyota also will launch a viral marketing campaign on that Web site as it approaches the launch
dates of the green vehicles, the source said.

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