Retail
Retailers report only 3% growth in sales in May
Retail businesses across regions have indicated growth in sales compared to May 2023, with South India showing the highest increase at 4%, followed by East and West India at 3% each, and North India at 2%.
It was ‘closing’ time for many retailers in FY24; V-Mart, W, Aurelia among cos that downed more shutters
Retail chains like Pantaloons, Spencer's Retail, and Nature's Basket have closed down more stores in 2023-24 than they opened new ones, leading to a drop in their total store count. V-Mart Retail, W, Aurelia, and Titan Eye+ had higher store closures than openings in the January to March quarter. Pantaloons store count dropped from 431 in FY23 to 417 in FY24, with 33 stores closed to improve network quality.
Amazon announces expansion of its grocery service unit to over 130 cities
Amazon India announced on Tuesday that it is expanding Amazon Fresh, its comprehensive grocery service. This service includes both wet and dry groceries such as fruits, vegetables, chilled products, and a range of personal care items.
Stop, thief! Retail giants are facing a new 'lifting' problem - not just from customers, but also staff & vendors
Indian retail faces increasing shrinkage issues due to thefts and errors, with Trent Ltd reporting a rise in shrinkage to 0.41% of sales in FY24. V-Mart Retail's shrinkage increased from 0.4% to 0.5% in the same period.
Myntra ropes in Shah Rukh Khan as brand ambassador for 'Trend IRL' campaign
Myntra has unveiled Bollywood superstar Shah Rukh Khan as its new brand ambassador for the ‘Trend IRL’ (Trend in Real Life) campaign. Known as the 'Baadshah of Bollywood,' Khan will lead this initiative to position Myntra as the top destination for discovering and staying ahead of fashion trends. The campaign, featuring Khan in stylish outfits in everyday settings, underscores Myntra’s mission to democratize fashion and inspire unique style expressions.
DPIIT officials, Flipkart, toy makers to meet on Wednesday on ways to increase sourcing
Senior officials from the Commerce and Industry Ministry, Walmart group firm Flipkart, and domestic toy makers will discuss ways to enhance India's position in the global toy supply chain and increase sourcing on the e-commerce platform.
Indians get hooked on 10-minute grocery apps, squeezing small retailers
India's quick commerce boom is reshaping how Indians shop, with Swiggy leading the charge in the fast-paced delivery game. The SoftBank-backed company's grocery warehouse in a middle-class suburb of Mumbai operates with precision, aiming to deliver orders within 10 minutes. Swiggy's bikers, clad in bright orange T-shirts, race against time to collect and deliver packed grocery orders, with the warehouse manager emphasizing the need for speed in the entire process.
Information overload causing decision stress to consumers, gen AI suggested to improve the shopping experience: Accenture report
88% of consumers abandoned purchases in the last three months of 2023, facing challenges in decision-making due to information overload and advertising bombardment, as per Accenture's latest research report.
As retail sales growth slow, retailers to cut deep discounts to drive profits
Retailers like Aditya Birla Fashion and Retail, Arvind, and V-Mart are avoiding deep discounts to boost profits. Madura Fashion reduced discounts by 500 basis points in the previous fiscal year to drive profitable growth. Madura Fashion manages brands such as Louis Philippe, Van Heusen, Allen Solly and Peter England
Trent plans global retail push after acing it in India
Noel Tata-led Trent is venturing into international markets with a flagship store in Dubai, targeting the Indian diaspora. Zudio, a key brand, has surpassed ₹7,000 crore in revenue in India. The company experienced another year of substantial growth in FY24, with net sales increasing by 50% to ₹12,375 crore and net profit nearly quadrupling to ₹1,477 crore.
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Retail cos, QSRs expand at slowest pace in 5 years
Retailers and quick-service restaurant chains in India experienced the slowest pace of store expansion in five years at 9%, with 33,219 stores as of March 31. In FY23, the number was 30,551, up 18% from the previous year. These companies added 2,700 stores, averaging 7 a day, but that's nearly half compared to 13 doors each day in FY23. Retail sales growth rate fell year-on-year every month in the previous fiscal, reflecting weak consumer sentiment across segments like apparel, footwear, and QSR.
Reliance Retail plans 30-minute delivery model for quick commerce re-entry
Reliance Retail is re-entering the quick commerce market with a 30-minute delivery model, focusing on a wider assortment of products than existing players like Blinkit and Zepto. They will leverage their network of stores and kiranas, connected through the JioMart Partner initiative, for product sourcing. Unlike competitors, Reliance will not set up dark stores for under-ten-minute delivery but will optimize delivery routes using tech platforms like FYND and Locus. The venture will start with groceries and expand to apparel and electronics, utilizing the 19,000-plus store network.
Next disruption? Reliance’s JioMart to enter quick commerce space to take on Blinkit, Zepto and others
Reliance Industries, led by Mukesh Ambani, plans to enter India's quick commerce sector, aiming to compete with Blinkit, BigBasket, Instamart, and Zepto. Initially targeting 7-8 cities, JioMart aims to expand to over 1,000 cities. Unlike rivals, it will leverage Reliance Retail's network instead of dark stores. Goldman Sachs estimates the online grocery market at $11 billion, with quick commerce accounting for $5 billion, possibly affecting kirana store sales.
Apple not the only company to grapple with cash payments in India; cash also figures prominently in car sales
With customers continuing to stream in with wads of notes to buy mobile phones or computers, payments for 7-9% of the American firm's sales in the two stores in India are made with cash, compared to less than 1% or even nil in its stores in the US or Europe, according to people with knowledge of the matter.
Post-pandemic, Indians shopped...till they dropped (in FY24)
Pent-up demand post-Covid led to booming sales in athleisure wear and lifestyle products. Kumar Rajagopalan notes the unsustainable high growth post-pandemic and the impact on consumer spending.
As mercury rises, so does the demand for home delivery
Ecommerce platforms are experiencing a surge in demand for essentials like groceries, leading to a spike in deliveries. This surge is also increasing the demand for manpower at dark stores and distribution centers. Orders in the National Capital Region have seen a sharp increase, with consumers also ordering ice-creams and beverages online.