US retail giant Walmart and French multinational retailer Carrefour have written to the Indian Government seeking clarity on certain rules guiding investments in multi-brand retail, including those related to compulsory sourcing of inputs from the small and medium enterprises (SMEs) and investing in back-end infrastructure.
The mandatory USD50-million back-end investment to be made by foreign multi-brand retail chains, such as Walmart, Carrefour and Tesco, would not be restricted to greenfield (new) facilities alone in India.
Over a million retailers in Mumbai have shut shop from Monday to protest against the Local Body Tax (LBT), which will replace octroi in Mumbai from 1 October. LBT has already replaced octroi in the rest of Maharashtra.
Neighbourhood retail shops and wholesale trading in clothes, electronics, hardware, metals, cloth, foodgrain, fruit, vegetables and all types of manufacturing activities in Mumbai have been paralysed since Monday morning. It has inconvenienced millions of customers. Modern trade such as Big Bazaar and Reliance stores are, however, open.
India is the next great frontier for global retailers, a USD500 billion market growing at 20 percent a year. For now, small shops dominate the sector. Giants from Wal-Mart Stores Inc to IKEA AB have struggled merely for the right to enter, which they finally won last year.
But a daunting array of permits – more than 40 are required for a typical supermarket selling a range of products – force retailers to pay so-called "speed money" through middlemen or local partners to set up shop.
Global retailers finally seem to be gaining confidence in investing in India. Commerce and Industry Minister Anand Sharma on Tuesday said several global retailers, including Tesco and Sainsbury's, had shown interest in setting up multi-brand retail stores in India.
An economic slowdown didn’t stop Indian households from borrowing more last financial year to fund their property, vehicle and credit card purchases compared with the same period a year ago. This is what data from the RBI on the sectoral deployment of credit for the latest fiscal show.
Indian retail chains are not in a tearing hurry to get foreign direct investment (FDI), according to the chief financial officers (CFOs) of some of the biggest retail companies. This is despite many of the big retail chains scouting for FDI in their hypermarket ventures.
"We will continue to operate for a long time. If the FDI in retail is delayed, it's not a be-all and end-all for us," said P Venkatesalu, CFO of Tata-owned retailer Trent, on the sidelines of Retail CFO Summit, organised by retailers body Retailers Association of India (RAI) in Mumbai.
This year marks the tenth anniversary of Louis Vuitton’s presence in India—it was the first luxury brand to open mono-brand stores in India. Several major international luxury brands such as Prada, Max Mara and Ralph Lauren are still absent from the market, while others are slowly making an entry - some of the PPR Group and Richemont Group br
India's per capita food and non-food consumption expenditure across India grew over 14 percent and 17 percent during the 2004-2005 and 2009-2010 period, respectively. Meanwhile, household consumption of FMCG registered growth rate of over 11 per cent during the same period.
D.S. Rawat, national secretary general of the Associated Chambers of Commerce and Industry of India (ASSOCHAM) released the findings of the chamber’s study recently.
Traditional retailers in India are giving strong competition to organised retailers and the decision to permit foreign retailers to open stores in the country will not affect small players in India, the government said on Wednesday.
According to the Economic Survey 2012-13, which was tabled by Finance Minister P Chidambaram in Parliament, as far as small retailers are concerned, organised retail already co-exists with small traders and the unorganised retail sector.