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Year: 2010

News & Views

Spencer’s – Financials + Business Verticals Insight

You are Reading this First HereWe would like to Present to you a Detailed Study on the Financial Matrix of Spencers Retail and the Managements View on the business and how it managed to cut losses and sail the 2008 storm.

Financials of Spencers Retail:
In FY10, our pre-tax losses have reduced by 50% YoY. The cash losses have also halved to Rs2bn (excluding Rs200m incurred by Music World). There are several adjustments to reported FY10 numbers. For instance, in FY10, they have taken a onetime non-cash charge of Rs1bn, comprising store closure, inventory write-down, etc. If we adjust FY09 numbers for (more…)

News & Views

Spencers focus shifts from Supermarket to Hymermarket

Excerpts from Enterprising India an interview with Mr. Sanjiv Goenka.

His views On Spencers Retail Business

I certainly expect Spencer’s Retail to become profitable, but would not like to comment on the precise time. In the retail business, we are creating a new vertical. It is a pioneering effort and a challenge, but we do believe we are on top of that challenge. I think sanity has (more…)

News & Views

Mapping the current Retail Scenario in India

You are Reading this First HereThe Indian retail industry (estimated size of INR1.2tn and US$24bn) has witnessed a robust growth of 12% over the past five years as rising income levels, favourable demographics and urbanisation trends have helped drive consumption boom.

Organized retail has seen an even sharper increase of 43% over the same period helped by a combination of factors including low penetration (more…)

Retail Research

Strategies for Success – Part – II

You are Reading this First HereIn continuing our research post on Winning Strategies for Retailing in India here are the last 4 commandants as come up by our in-house research team.

Is there a Fixed Business Model for Success ? The answer is NO. While Pantaloon successfully added 7msf from FY06-FY09, Trent and Shoppers Stop remained conservative due to the lack of availability of quality retail space at reasonable rentals and did not expand aggressively. While many tried to go the aggressive way like Pantaloon, but only to scale back, Trent and Shoppers Stop evolved their business model even as capital was scarce and footfalls dropped. Both Pantaloon (more…)

Retail Research

Top 10 Strategies for Success – Part – I

What separates the men from the boys in India Retail Inc.? There have been more failures than successes in organized retail in India. We believe that in the last two years, when capital was scarce and consumption patterns were weak due to the global economic crisis, it has clearly emerged that retailing in India is not as easy as it seems.

We will have a look at the Top 10 Business Strategies for flying colors in Indian Retail.

Ensure Store Level Profitability Before Expansion – The top-three unlisted players have revenues of nearly Rs 100bn over FY06-09 only to reel under accumulated (more…)

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