New Stop & Shop concept store opens in Chelmsford

New Stop & Shop concept store opens in Chelmsford with following convenience options:

An on-site nutritionist: The company has hired a professional nutritionist who will be available for consultations. The cost, according to Robinson, will be $25 an hour, but the customer will get that $25 back in the form of a gift card.

Day care services: Stop & Shop is introducing “The Tree House” – a room where supervised day care is provided for up to 90 minutes for free, for children ages 3 through 9.

Curbside pickup: Customers will be able to order groceries on a computer and pick them up at the store without leaving their cars. They can pull up to a designated curbside pickup area where a Stop & Shop employee will process the payment and load the shopper’s car.

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IT ’ S A ‘MALL ’WORLD

The retail revolution in Mumbai has enhanced residential spaces across the city

When Crossroads, the first mall in Mumbai and in the country was launched, little did we know that the city would witness such a huge retail boom in the years to come! Today, Mumbai is home to some of the most prominent and successful malls in the country.

The start of this retail revolution in Mumbai can be traced to the initial years of the last decade. However, during the time frame of 2003-04 to 2007-08, the sector witnessed significant growth of around 11 per cent. The second half of the year 2010 re-witnessed an upsurge in the retail market post the economic meltdown.

Mumbai is estimated to have total organised retail stock of 8.72m sq. ft. and will witness 11.26 m sq. ft. of new retail development over the next three years. According to a study by McKinsey Global Institute, India is poised to become the fifth largest consumer market by 2025. The retail sector in the western parts of India like Mumbai, Pune, Nagpur and Ahmedabad, have seen a huge transformation, thanks to the changing consumption patterns, high disposable income in hand and favourable demographics.

Explains Shreesh Misra, Center Director of Phoenix Marketcity, Kurla, “An asset like a mall becomes a catalyst for people to converge at a particular location and spend leisure time beyond their office hours or during their weekends thus offering utmost convenience. So as and when the consumers start frequenting a mall or a retail space, the administration also plays a key role to support the property with proper infrastructure. Considering all these factors when people of a certain profile start taking a keen interest in a particular demographic it directly results in demand of residential spaces thus resulting in a complete makeover of the area.”

Phoenix Marketcity, which is coming up at Kurla, is predicted to change the face of this central suburb. It will floor 2.1-m sq ft project area for retail and boast of one of the biggest multiplexes in the city with 11 screens.

Retail developments in Mumbai like Inorbit Mall at Malad, Center One at Vashi and High Street Phoenix at Lower Parel were among the first to successfully bring in landscape changes in these respective areas. Such developments have had a positive impact on the real estate prices in the areas of their operations. Commercial places like Kamala Mills Compound, One Indiabulls Centre, Raghuvanshi Mills have gained prominence after High Street Phoenix. Adds Misra,”High Street Phoenix has acted as a catalyst for commercial and residential developments for Lower Parel which was not perceived to be good for any kind of development earlier. Today, it is one of the most sought after locations.”

Similarly, several residential projects by leading developers like Rustomjee and Kalpataru, to name a few, have launched their residential projects post the launch of Inorbit Mall in Malad.

Mumbai undoubtedly has a large number of working couples, migrants, DINK (Double Income and No Kid) and families with good disposable incomes and display an increasing appetite for socializing. These retail destinations being closer to such residential hubs add more vibrancy and convenience to the lifestyle.

Says Reema Kundnani, V.P – Marketing & Corporate Communications, Oberoi Realty, “Today, an average Mumbai family spends their weekend in a mall where the lady of the family gets to shop and meanwhile the kids get to play in the fun zone.

The main reason why malls are gaining popularity is because facilities like shopping, entertainment, movies and food are all available under one roof which makes it a hassle-free destination. We started with Oberoi Mall as the initial step of Oberoi Garden City project followed by the other planned developments.”

Similar is the story of central suburbs and Navi Mumbai where the mall culture is fast spreading with the commencement of malls like R-Mall, Nirmal Lifestyle, Korum, Eternity and Center One, Inorbit and Raghuleela in their respective suburbs. Center One, the first mall in Navi Mumbai, has played a significant role in the development of Vashi node.

Says Sandeep Runwal, Director, Runwal Group, “A good retail development changes the entire look of the area. Before the launch of R-City mall the area wasn’t a preferred destination for residential spaces. But now the residential prices have been almost doubled or tripled in the area. A good mall always adds value to the area and people are willing to pay premium price for a good lifestyle.” Runwal Group has established R-Mall, the first mall in Mulund, R-City and R-Odeon in Ghatkopar and R- Mall in Thane.

Clubbed with 7 -7.5% growth in GDP, the organised retail market is expected to grow in the near future, adding convenience and a new buzz to residential locations across the city.

Future Group to build wholesale markets

Agre Developers, a Future Group company, formerly known as Future Mall Management, has struck a deal with Bangalore-based developer the Sattva Group to build a wholesale trading market on the lines of Dubai’s Dragon Mart and China’s Yiwu wholesale market. This is the first of the eight businessto-business (B2B) markets that the company is planning to start across major cities in the course of the next few years. These trading hubs will stock general merchandise, IT peripherals, hardware products along with other commodities typically spread across a 5-10 acre space. The BSE listed-company will also be getting into the infra-logistics and retail infrastructure business. 

Kishore Biyani had merged his real-estate business with Kolkata-based developer Sumit Dabriwala into Agre Developers to strengthen the retail major’s foothold in the realty space. The retail to financial services group runs stores like Big Bazaar and Food Bazaar.
Sumit Dabriwala, MD, Agre Developers, told TOI, that the strategy for the company going forward will be to tie-up with strategic partners to facilitate the opening of these tradings hubs and also to build infra-logistics across the country. Agre Developers will work in tandem with Future Supply Chain, the logistics and supply chain vertical of the group, on the infra-logistics business.
“Even as the demand of logistics in the country expands, supply of good quality logistics infrastructure is extremely low. This is where we will work with Future Supply Chain and also with other logistics companies,” Dabriwala said.
The company will look to plough about Rs 500 crore of equity across the three formats and is evaluating the possibility of inviting strategic partners into each of these businesses. The total outlay on the three business verticals will be around Rs.3500 crore over the next five years, said Dabriwala.
“While the wholesale trading and the infra-logistics business will be in partnership with another entity, the retail infrastructure vertical of the company will be operated independently.
“On the retail infrastructure side, the mandate is to play a bigger role which will start right from spotting the location of the mall to designing the mall, determining the tenant mix, sub-leasing the mall and managing it over the life cycle of the transaction,” Dabriwala pointed out.

Retail majors in rightsizing mode

IN A bid to maximise sales per square feet, Indias frontline retailers are increasingly looking at ways to restructure their stores. Leading players like Future Group, Spencers Retail, Shoppers Stop and Vishal Retail plan to rightsize their stores and replace slow-moving categories with speciality formats under the shop-in-shop model.

Retailers feel such an approach will also help them improve gross margin returns per sq ft in the present environment when same store sales growth is quite weak. A shop-inshop approach helps increase revenue per sq ft. It enables best utilisation of space and is a good way to do away with excess space and reduce space for categories which are not doing well, Future Group CEORetail Rakesh Biyani told ET.

Future Group plans to offer a wider choice in large-format stores like Big Bazaar by setting up speciality zones under the shop-in-shop model. This approach provides consumers with a wider choice. We have a similar model for the Pantaloons outlets in the East and may replicate it elsewhere, Mr Biyani said. Shoppers Stop recently tied up with Cafe Coffee Day to manage cafes within its stores. It is an ongoing process to maximise returns, said managing director BS Nagesh. The most common categories where retailers are looking for shop-inshop outlets include food and beverage, saris and areas which have more customerconnect requirement like cosmetics, personal care products, fine jewellery and salons, says Retailers Association of India CEO Kumar Rajagopalan.

Spencers Retail, which is presently rightsizing by cutting down on 20% of its retail space, also plans to focus on shopinshops. In a slowdown, shop-in-shops are the best way to leverage domain knowledge of speciality players and maximise returns. Such outlets will be set up through our groups speciality formats like Books & Beyond, Mera World, Music World as well as in collaboration with other players, Spencers Retail marketing head Samar S Sheikhawat.

Vishal Retail group president Ambeek Khemka said the retailer too is restructuring its 171 stores nationally. We have already completed the exercise for 35-odd stores and the results are encouraging. In fact, small and regional brands are lapping up the opportunity to follow the shop-in-shops model, he said.

Economic Times: Writankar Mukherjee & Sreeradha D Basu, KOLKATA

Pantaloon sees future in Value Retail

IN A move that could pave the way for new investors to step in, Pantaloon Retail will spin off two of its biggest revenue grossers — Big Bazaar and Food Bazaar — into a new entity, Future Value Retail. The two formats constitute over 55% of the turnover of the country’s biggest retailer. Food Bazaar president Sadashiv Nayak has taken charge of both Big Bazaar and Food Bazaar while Rajan Malhotra, president of Big Bazaar, has moved to the Future Group as president, retail strategy.

When contacted, Future Group CEO Kishore Biyani said: “We have been evaluating the option of creating a new entity for our value retailing businesses.” Last year, Pantaloon Retail had secured board approvals for hiving off the businesses into independent subsidiaries that could be listed at a later date.

Under the proposal, Pantaloon Retail will be a holding company. Pantaloon officials familiar with the development said the group is examining a structure that would eventually enable it to strike a JV with a global retailer. Pantaloon Retail has been in talks with Carrefour, the world’s second-largest French supermarket group, for a JV in India.

Under the scheme of things, Future Value Retail would serve as a major supply-chain entity for all Future Group store formats and help the company prune costs, a group official said. Technically, the sourcing and back-end of the store formats would be one while the front ends would continue to operate as separate entities. Currently, all Food Bazaar outlets, comprising its food and grocery supermarket business, are located within Big Bazaar formats.

While Big Bazaar is the group’s hypermarket business and has 109 stores, Food Bazaar is a supermarket chain that has 152 stores with most of them housed adjacent to Big Bazaar. Food Bazaar’s business model resembles the value model of global retailer Wal-Mart. According to Nielsen data, Food Bazaar’s share in the FMCG space in terms of modern trade is about 28%. Pantaloon Retail is estimated to report sales of Rs 10,000 crore for 2008-09 while the combined revenues of Big Bazaar and Food Bazaar are estimated to touch Rs 5,000 crore.

A proposed joint venture with a foreign retailer would enable the Future Group access sizeable dollar funds needed to expand its business. A foreign partner will also help the group bring in more efficiency in sourcing and logistics, helping it drive down prices and boost margins. Besides Big Bazaar, the Future Group runs Food Bazaar, KB’s Fair Price shops, Pantaloons, Central, Home Town, eZone and Aadhaar. The Pantaloon Retail stock closed at Rs 130.15, up 5.46%, on the BSE on Monday.

In a challenging consumer environment, bargain hunters are flocking to modern value-retail formats like Big Bazaar, Food Bazaar, D’Mart and More, which have been coming up with discount offers to attract customers. This reflects a global trend, wherein value-retail formats are growing despite the overall slowdown in the economy. Last month, US-based Wal-Mart reported a strong 5.1% increase in same-store sales (excluding gasoline sales) in the US, even though lifestyle chains, like Target, Macy’s and Abercrombie & Fitch, suffered a drop in sales.

RETAIL BLISS

Pantaloon may use the new format to strike JV with France’s Carrefour
A proposed JV would bring in the required funds for Future Group to scale up its business Presence of a foreign partner, in all likelihood, will have a positive impact on the efficiency level, which would bring down prices and help margins

Falabella Hypermarkets to Upgrade POS at 200+ Stores

falabellaFalabella S.A.C.I., a Latin American retailer with more than 200 supermarkets, department stores and home improvement stores throughout the region, plans to install a new point-of-sale in more than 1,700 POS lanes in its Supermarket Division in Chile and Peru as part of its push for state-of-the-art technology throughout its operations.

The retailer will install the Retalix StoreLine POS system for the implementation, which also includes Fujitsu TeamPOS 3000 XL POS terminals and Datalogic hand-held scanners.

“This rollout with Retalix is part of an aggressive investment plan to implement state-of-the-art, world-class information technology to offer the best levels of security, agility and efficiency in all our operations,” said Cesar Hashimoto, CIO of Falabella’s Supermarket Division. “Our IT investments are helping us to increase efficiencies at the point-of-sale to enhance customer service and the shopping experience, as well as procurement, distribution and inventory in our supermarkets — all to the benefit and satisfaction of our customers.”

The StoreLine application contains advanced POS functionality that supports customer loyalty, self-checkout, fuel management, QSR and a variety of electronic payment services.

Retalix is working with Bell Tech in Chile and Peru to provide hardware, project management and ongoing support for new store openings.

Falabella operates department stores, home improvement centers, grocery hypermarkets, financial retail operations and real estate ventures in Chile, Peru, Argentina and Colombia. The company achieved consolidated revenues of more than $5.7 billion in 2007, while investing a record of more than $600 million in capital expenditures.

Tesco’s new supermarket to minimise energy consumption

A new supermarket has been built that uses half as much fuel as similarly-sized buildings built in the past.

The new Tesco in Cheetham Hill, Manchester, has a combined heat and power plant which runs on sustainably sourced natural fuel, which contributes to the store using 48 per cent less fuel than one built in 2006.

Its construction throughout has been built in order to minimise energy consumption and carbon dioxide emissions, according to corporate affairs executive director Lucy Neville-Rolfe.

She said: “The new blueprint, which will provide a foundation for future stores being built in the UK, demonstrates our commitment to tackling climate change.

It will also considerably reduce store fuel costs going forward.” The store has a timber frame, lights that adapt to the amount of natural light and a natural ventilation system.

Its staff can also keep track of the energy and water being used throughout the building using a metering system. However, environmental groups have questioned how green a supermarket like Tesco can actually be.

Former director of Friends of the Earth has said that among the hidden consequences of supermarkets were “the traffic they generate and the food miles they clock up, thus helping to accelerate climate change”.

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