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Retail 27-01-2022

ICRA: Omicron to lead to 20% decline in mall rentals in Q4FY2022

Fabindia to gift seven lakh shares to artisans & farmers

25 January 2022, Mumbai:

Lifestyle brand Fabindia has launched a unique scheme to gift seven lakh shares to artisans and farmers from the Rs 4,000 crore IPO it will soon launch.

The company filed the Draft Red Herring Prospectus (DRHP) with markets watchdog Sebi for the offer including fresh issue of shares worth up to Rs 500 crore. Fabindia also plans ‘Offer For Sale’ OFS of up to 25,050,543 shares.

Farmers & Artisans - Home | Facebook

It will utilize the proceeds from the fresh issue of shares for voluntary redemption of its NCDs (Non-Convertible Debentures), pre-payment or scheduled re-payment of a portion of certain outstanding borrowings and general corporate purposes.

Draft Red Herring Prospectus (DRHP) Meaning - StockManiacs

KEY HIGHLIGHTS

Scheme to gift artisans & farmers from the Rs 4,000 crore proposed IPO
It also plans ‘Offer For Sale’ OFS of up to 25,050,543 shares
The company filed the DRHP with markets watchdog Sebi
In the DRHP, the company mentions, its ESG initiatives

In the DRHP, the company mentions, its ESG (Environmental, Social and Governance) initiatives, with have a long and lasting positive impact on its growth.

The company is the largest private platform for products that derive from traditional crafts and knowledge. A large proportion of these are sourced from villages across India where the company works closely with the artisans, providing various inputs including design, quality control, access to finance and raw materials.

Fabindia’s endeavor is to bring customers a choice of products – and lifestyle – that offers an alternative to the mass-produced, while creating sustainable livelihoods in the rural sector.

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Retail 25-01-2022

Fabindia to gift seven lakh shares to artisans & farmers

RIL: Spate Of Buyouts To Take On Competition

24 January 2022, Mumbai:

Reliance Retail
It's has signed agreements with leading cosmetics and beauty brands
Internally, it's being called Project Adore

Reliance readies Nykaa rival using two of its startup acquisitions - The Economic Times
Co is in the process of making out specific zones within physical stores.
Isha Ambani is said to be helming the project
Credits: ET dt 25-01-2022

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Retail 25-01-2022

RIL: Spate Of Buyouts To Take On Competition

Future Retail (FRL) asks Amazon to fund for to repay its lenders avoiding FRL default

23 January 2022, Mumbai:

In a letter to Amazon, the Kishore Biya ni-promoted Future Retail (FRL) has asked the US e-commerce giant for Rs 3,500 crore by January 24 in order to repay its lenders and avoid default. FRL, which operates the Big Bazaar chain of hypermarket stores, is required to pay its lenders the sum by January 29, failing which it will be classified as a non-performing asset (NPA).

The company is set to default on the payment, said people in the know of the matter.

The cash-strapped retailer, currently entangled in a bitter legal battle with Amazon over its proposed sale of assets to Reliance for Rs 25,000 crore, had missed the due date that was on or before December 31st,2021.

Credits: TOI 23-01-2022

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Retail 22-01-2022

Future Retail (FRL) asks Amazon to fund for to repay its lenders avoiding FRL default

The BHRRC's probe into factory salaries in Karnataka has prompted fast-fashion firms to respond

25 January, Mumbai: 2022

The Business & Human Rights Resource Centre has contacted 22 retailers for updates after allegations of garment workers in Karnataka being paid less than the minimum wage in factories supplying international fast-fashion brands.

As of January 25, 21 of the 22 apparel firms contacted by BHRRC have answered, with only Benetton Group failing to do so, according to BHRRC's website. Brands, on the other hand, made varied guarantees to ensure that their manufacturing employees were compensated for their unpaid salaries.

Apple's Wistron facility vandalised by employees over pay issues, company launches probe - Pricebaba.com Daily

The Karnataka high court declared in September 2021 that all workers must be paid the minimum wage, including any arrears, independent of any other judicial procedures in India.

Several labor organizations have requested apparel firms who buy clothes from Karnataka to intervene to guarantee that their workers are paid properly, citing claims that over four lakh workers in the state are paid less than the legal minimum wage.

As a result, the workers were unable to sustain themselves through full-time employment.

Abercrombie & Fitch, Adidas, American Eagle, ASOS, C&A, Columbia Sportswear, Gap, H&M, Inditex, Levi Strauss & CoMarks & Spencer, Next, Nike, Primark, Puma, PVH, Target, Tesco, Uniqlo, VF Corporation, and Walmart were among the brands that replied to the BHRRC's poll. Although the majority of the brands polled stated that they intend to give workers back wages, much fewer claim that they have already received even partial reimbursement.

Some retailers, such as ASOS, Next, and Marks & Spencer, responded that they had made partial payments to workers who had previously been underpaid.

All 22 brands contacted by BHRCC have rules stating that all workers in their supply chain are paid in full. Puma, Walmart, Target, and Nike all replied without outlining their plans to pay back wages to workers.

Although a handful of businesses responded that they had partially paid back pay to employees, none of them indicated that they had paid back pay in full.

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Retail 25-01-2022

The BHRRC's probe into factory salaries in Karnataka has prompted fast-fashion firms to respond

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Retail 24-01-2022

Future Retail Ltd (FRL) not in a position to make of past-due debt

22 January 2022, Mumbai:

Future Retail Ltd (FRL) isn't in a position to make a payment on 35 billion rupees ($471 million) of past-due debt before the grace period expires.

Future Retail Ltd. isn’t in a position to make a payment on 35 billion rupees ($471 million) of past-due debt before the grace period expires and will also miss an upcoming $14 million bond coupon deadline, according to people familiar with the matter.

Its dollar bond fell following the news, suffering its biggest decline in about three weeks on Friday.

Embroiled in a legal dispute with Amazon.com Inc. that has damaged its ability to raise funds, the Mumbai-based retailer is coming up against two key milestones that will test creditors’ faith after its onshore debt was restructured during the pandemic.

Already missed a Dec. 31 deadline to lenders, Future has until the end of this month to come up with the money for the rupee-denominated debt. But it won’t be able to do so, the people said, asking not to be identified because the discussions are private.

The company will also not be able to make a coupon payment due Jan. 22 on its $500 million bond, according to the people.

A spokesman for the company didn’t immediately respond when contacted by Bloomberg by both email and telephone on Thursday.

BUSINESS STANDARD (The news article has not been edited by DFU Publications staff)

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Retail 21-01-2022

Future Retail Ltd (FRL) not in a position to make of past-due debt

CAIT launches a new CCI complaint against Amazon over its plan to buy More Retail

25 January, Mumbai: 2022

On January 24, the Confederation of All India Traders filed a complaint with India's Competition Commission alleging that Amazon committed fraud while seeking authorisation to acquire More Retail.

According to the Press Trust of India, "it abundantly shows Amazon's evil ambitions to dominate Indian retail enterprises in a deceptive manner to seize the physical retail trade and inventory-based e-commerce in India, causing immense harm to the traders."

Amazon (AMZN)

According to CAIT, Amazon willfully misrepresented information in order to deceive the CCI about its plans to acquire More Retails' Indian retail network. When Amazon was attempting to acquire Future Retail, CAIT claimed that it committed the same fraud.

According to the traders' association, Amazon acquired More Retail through Samara Alternate Investment Fund, which has a 51 percent ownership share in Witzig Advisory LLP, which controls More Retail Limited.

This, according to CAIT, is against Indian rules. "As with Future, Amazon has stated to CCI that (a) Amazon has solely made a financial investment in Witzig," according to CAIT's legal complaint. "(a) The rights Amazon has obtained over More Retail Limited are solely investment protection rights, and Amazon has no strategic interest in More Retail."

CAIT has used a variety of tactics to criticize Amazon's commercial operations in India, including media campaigns, strikes, rallies, boycotts, and other tactics. According to the organization, the US corporation is monopolizing India's e-commerce sector and damaging Indian enterprises.

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Retail 25-01-2022

CAIT launches a new CCI complaint against Amazon over its plan to buy More Retail

Reliance Retail, The fashion and lifestyle division: Achieves its greatest quarterly revenue ever

24 January 2022, Mumbai:

Reliance Retail, India's largest retailer, saw strong growth in the third quarter of the current fiscal year. Due to robust holiday sales, the company's clothing and footwear business quadrupled.

The firm achieved all-time high revenues across all consumption baskets, thanks to record-breaking retail sales and strong growth in the digital and new commerce categories.

The firm claimed in a statement that its net profit increased by 23.4 percent year over year (Y-o-Y) to Rs. 2,259 crore in the December quarter of the fiscal year 2021-22 (Q3FY22), with cash profit up 32 percent to Rs. 3,277 crore.

In Q3, revenues surged by 53.4 percent year on year to Rs. 50,654 crore, while gross income from all consumption baskets, except petroleum and connection, increased by a stunning 90 percent.

Reliance Retail snaps up Indian department-store chain | Retail & Leisure International

It produced its highest-ever quarterly sales in the fashion and lifestyle industry, with a twofold rise over the year-ago period, boosted, among other things, by growth in average bill values, which resulted in strong store performance.

AJIO, the company's online fashion retail brand, reached new heights with a threefold increase in sales and a twofold increase in catalog size year over year as it added national and regional brands and bolstered its own brand portfolio in the value category.

"Retail business activity has normalized with significant growth in major consumption baskets on the back of the Christmas season and as lockdowns eased across the nation," Mukesh Ambani, CMD, said of the Q3 results.

"Extended seasonal deals over Diwali, Black Friday, and Christmas drew a lot of attention from customers, resulting in increased conversions and average bill values," according to the press statement.

"As we look forward to the next quarter, what we see is that there has been some volatility, which has come with the new Covid strain, but we believe we are well prepared to navigate through the challenges that are posed by it," said Gaurav Jain, Head, Strategy and Business Development, Reliance Retail.

CREDITS: businessinsider businesstoday

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Retail 24-01-2022

Reliance Retail, The fashion and lifestyle division: Achieves its greatest quarterly revenue ever

Shoppers Stop turns around in Q3FY22

22 January 2022, Mumbai:

Shoppers Stop Limited has reported Consolidated financial results for the period ended December 31, 2021.

Financial Results (Q3 FY2022) - QoQ Comparison

The company has reported total income of Rs. 972.65 crores during the period ended December 31, 2021 as compared to Rs. 709.63 crores during the period ended September 30, 2021.

The company has posted net profit / (loss) of Rs. 77.32 crores for the period ended December 31, 2021 as against net profit / (loss) of Rs. -3.58 crores for the period ended September 30, 2021.

The company has reported EPS of Rs. 7.05 for the period ended December 31, 2021 as compared to Rs. -0.33 for the period ended September 30, 2021.

Financial Results (Q3 FY2022) - YoY Comparison

The company has reported total income of Rs. 972.65 crores during the period ended December 31, 2021 as compared to Rs.746.45 crores during the period ended December 31, 2020.

The company has posted net profit / (loss) of Rs.77.32 crores for the period ended December 31, 2021 as against net profit / (loss) of Rs.-25.11 crores for the period ended December 31, 2020.

The company has reported EPS of Rs.7.05 for the period ended December 31, 2021 as compared to Rs.-2.75 for the period ended December 31, 2020.

Financial Results (9 Months Ended FY2022) - YoY Comparison

The company has reported total income of Rs.1951.78 crores during the 9 Months period ended December 31, 2021 as compared to Rs.1268.50 crores during the 9 Months period ended December 31, 2020.

Hit Hard By Second Wave, Shoppers Stop Expects A Recovery In Q2FY22

The company has posted net profit / (loss) of Rs.-31.15 crores for the 9 Months period ended December 31, 2021 as against net profit / (loss) of Rs.-243.06 crores for the 9 Months period ended December 31, 2020.

The company has reported EPS of Rs.-2.85 for the 9 Months period ended December 31, 2021 as compared to Rs.-27.26 for the 9 Months period ended December 31, 2020.

Shares of Shoppers Stop Limited was last trading in BSE at Rs. 361.45 as compared to the previous close of Rs. 350.35. The total number of shares traded during the day was 13766 in over 1062 trades.

The stock hit an intraday high of Rs. 365.00 and intraday low of 346.25. The net turnover during the day was Rs. 4888853.00.

EQUITY BULLS (The news article has not been edited by DFU Publications staff)

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Retail 21-01-2022

Fabindia submits draught documents for an initial public offering (IPO)

25 January, Mumbai: 2022

Fabindia, a renowned ethnicwear and lifestyle store, has submitted draft documents to the Securities and Exchange Board of India (SEBI) to conduct an initial price offer (IPO).

According to a report, the IPO is a combination of primary and secondary issuance of shares, with the OFS (offer for sale) component accounting for the bulk of the IPO to allow partial exit for numerous investors.

KEY HIGHLIGHTS

Fabindia is a renowned ethnicwear and lifestyle store chain
It has submitted draft documents to SEBI to conduct an IPO
IPO is a combo of primary & secondary issuance of shares, with the OFS
The fresh issue portion is up to Rs. 500 crore

It was allegedly started when filing with the regulator that the fresh issue portion is up to Rs. 500 crore. The promoter group, Premji Invest, Bajaj Holdings and Investment Ltd., the Nilekani family, Kotak India Advantage Fund, and others are among the selling shareholders.

The funds from the IPO will be utilized for debt reduction, voluntary redemption of nonconventional debentures (NCDs) issued by the firm, and general corporate objectives, according to Moneycontrol.

Manyavar owner Vedant Fashions (supported by Kedaara Capital) recently raised Rs. 1,014 crores through an IPO, whereas Go Colors, a renowned women's bottom wear brand, recently raised Rs. 1,014 crores through an IPO.

Fabindia in the city New Delhi

Fabindia focuses on eco-friendly and traditional Indian lifestyle items.

It has a wide range of lifestyle items in the categories of fashion and accessories, home and lifestyle, personal care, and organic food. It has a 309-store and-experience network across India, as well as online platforms and applications.

**The statistics mentioned in the above articles have been sourced from Money Control.

CREDITS: MONEY CONTROL

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Retail 25-01-2022

Amazon is planning to build a fashion store where algorithms would recommend items to try on

23 January 2022, Mumbai:

Amazon.com Inc.'s formula for the department store of the future includes algorithmic recommendations and a "magic closet" in the fitting room, according to one corporate director.

The online retailer said on Thursday that it will build its first-ever clothes store this year, with a digital twist, in an effort to expand its fashion business. Simoina Vasen, a managing director, said, "We wouldn't undertake anything in physical retail unless we believed we could considerably improve the consumer experience."

Introduction to Algorithms - GeeksforGeeks

The projected "Amazon Style" store in Los Angeles is smaller than a standard department store at 30,000 square feet (2,787 square meters). Models are on the racks, and consumers use Amazon's mobile app to scan a code to choose the color and size they want.

Shoppers enter a virtual wait for a fitting room, which they open with their smartphone when it is ready, to try on the clothing that is stored in the rear. The dressing room on the inside provides "a personal area for you to continue shopping without ever having to leave," according to Vasen.

Each features a touchscreen that allows customers to order additional products, which are delivered to a secure, two-sided closet "within minutes," according to her.

"It's like a magical closet with an infinite number of options," Vasen added. Shoppers can also get suggestions from touchscreens. Amazon keeps track of every item a consumer scans in order to tailor apparel suggestions.

Customers can also participate in a style survey. Employees have already deposited clients' requested products as well as Amazon-selected items by the time they arrive in a fitting room.

Customers may opt out with the help of a concierge, according to Amazon. Before, Amazon announced technology to assist buyers in selecting clothing. According to analyst data, the firm has eclipsed Walmart Inc as the most-shopped clothes retailer in the United States.

However, it still has space to grow and compete with smaller-format retailers such as Macy's Inc and Nordstrom Inc. Amazon's physical grocery and convenience stores have yet to disrupt traditional retail. Vasen declined to name specific products, but said the company's new store seeks to appeal to a wide variety of customers.

It employs hundreds of people and does not use a cashier-less checkout system like some Amazon locations, according to Vasen. Customers may still pay with a sweep of their palm using Amazon One, a biometric technology.

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