10 January 2022, Mumbai:

Avenue Supermarts' DMart reported over 20% growth in both sales and profit in the financial quarter which ended in December, 2021 but some analysts have termed the business’ performance underwhelming.

The recent quarter saw businesses enjoy near-normal operating conditions and sizeable commodity inflation which has led some analysts to call DMart’s recent growth too little for its stock market valuation, the Economic Times reported.

DMart’s gross margin also failed to grow and its growth in earnings before interest, tax, depreciation, and amortisation was mainly due to operating leverage.

“Consensus continues to believe that DMart is a linear and secular growth story but we disagree,” ICICI Securities' Manoj Menon and his team said in a note, ET Bureau reported.

Dmart retails a wide range of value fast moving consumer goods including apparel and accessories. However, the business’ apparel segment, along with general merchandise, has performed considerably less well than its essentials and groceries segments.

The weak performance of the business’ apparel segment has negatively affected its overall revenue and profit margins, the analysts said. Increasing retail restrictions due to Covid-19 are expected to exacerbate this trend of ‘essential’ groceries over apparel.

“In India, nuances matter more,” said Menon. “We disagree with consensus' over-enthusiasm. Watch out for DMart potentially getting disrupted like how India skipped wireline penetration and jumped directly to wireless.”

FASHION NETWORK (The news article has not been edited by DFU Publications staff)

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10 January 2022, Mumbai:

As Covid-19 restrictions in several states reduce mall opening hours and capacity, many merchants in all categories, including fashion, are starting negotiations with malls about bringing back rent relief.

Weekend curfews and evening retail restrictions have been reinstated in certain states, notably Delhi, while others, like Maharashtra, are following suit, fast enacting steps to halt the spread of Covid-19's Omicron form. Businesses are losing sales as a result of this, making it more difficult for them to pay shop rent.

The managing director of ethnic fashion firm Biba, Siddharath Bindra, told the Economic Times, "We would need to address all our landlords and find a proper solution." "We are rather sure that the majority of individuals [landlords] will adopt a proactive approach." Every day, business is dwindling."

Benetton, Jack & Jones-retailer Bestseller Retail, Vero Moda, Only, and Forever New are among the other fashion retailers that have begun conversations with malls where they have locations, according to ET Bureau. Restaurants are also seeking negotiations, since the 50 percent capacity regulation has a significant impact on them.

Due to high vaccination rates across the country, the third wave of the virus came as a shock to merchants, who were anticipating a rebound to pre-Covid sales levels or higher by the end of 2021.

Some retailers are hoping that if further lockdown measures are implemented, malls would once again give rent discounts or even exemptions.

However, an issue that mall owners have faced in prior lockdowns is that many malls are supported by big bank loans, and mall owners rely on rent from shop owners to meet their loan repayments, making them unable to grant long-term or considerable rent concessions.

Dear Reader, we at DFU Publications are committed to providing the latest news updates on trade development and insights, to keep our readers informed. Stay tuned. Subscribe to our newsletter.

DAILY NEWS:

• Flipkart, an Indian e-commerce company, collaborates with PUMA on the ‘1DER' line, which features batsman KL Rahul

• Consumers will determine growth of sustainable fashion e-comm in India

• Myntra to offer 1 mn styles from about 7,000 brands at the 'Big Fashion Festival'

• Maharashtra government honors VIP as 'Best Innerwear Brand' for 2021-22

• Nike strengthens retail presences with new store at DLF Mall of India,Noida

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08 January 2022, Mumbai:

Ingka Group said prices would go up around 9% on average across its markets, with local variations reflecting different inflationary pressures, including commodity and the supply chain issues.

“Unfortunately now, for the first time since higher costs have begun to affect the global economy, we have to pass parts of those increased costs onto our customers,” Retail Operations Manager Tolga Öncü said. cnbc.com

In the coming year it will pass some of these costs on to its outlets, which will be free to then charge customers more, the Reuters news agency reported.

Businesses have been struggling with supply chain problems as economies recover from the Covid pandemic.

The Swedish furniture giant saw record demand during the pandemic as people spent more time at home.

However, pre-tax profit at Ikea Group, which makes most of its money selling goods to its franchisees, fell 16% in the year to September to €1.7bn (£1.4bn). bbc.com

Dear Reader, we at DFU Publications are committed to providing the latest news updates on trade development and insights, to keep our readers informed. Stay tuned. Subscribe to our newsletter.

DAILY NEWS:

• Flipkart, an Indian e-commerce company, collaborates with PUMA on the ‘1DER' line, which features batsman KL Rahul

• Consumers will determine growth of sustainable fashion e-comm in India

• Myntra to offer 1 mn styles from about 7,000 brands at the 'Big Fashion Festival'

• Maharashtra government honors VIP as 'Best Innerwear Brand' for 2021-22

• Nike strengthens retail presences with new store at DLF Mall of India,Noida

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07 January 2022, Mumbai:

Large retailers and restaurant chains have started discussions with malls and landlords for rental concessions, as weekend curfews and late evening curbs severely dent businesses, executives said.

"We have written to landlords and mall owners to renegotiate rentals; 70-75% of our business comes from weekends and dinner, which is gone," said Rohit Aggarwal, director of Lite Bite Foods, which operates Asia 7, Punjab Grill, and The Artful Baker: "We expect business to be impacted all through January-March."

Many such as Benetton, Jack & Jones-retailer Bestseller Retail, Vero Moda, Only, ethnic retailer Biba and Forever New have either begun informal discussions with mails and landlords for rental concessions or said they would do so in the coming weeks.

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

Dear Reader, we at DFU Publications are committed to providing the latest news updates on trade development and insights, to keep our readers informed. Stay tuned. Subscribe to our newsletter.

DAILY NEWS:

• Flipkart, an Indian e-commerce company, collaborates with PUMA on the ‘1DER' line, which features batsman KL Rahul

• Consumers will determine growth of sustainable fashion e-comm in India

• Myntra to offer 1 mn styles from about 7,000 brands at the 'Big Fashion Festival'

• Maharashtra government honors VIP as 'Best Innerwear Brand' for 2021-22

• Nike strengthens retail presences with new store at DLF Mall of India,Noida

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08 January 2022, Mumbai:

The rise in COVID-19 Omicron cases is leading to a sharp drop in footfalls in mall s in metros including Delhi, Mumbai, and Bengaluru.

As per a Fashion Network report, footfalls in top metros have dropped by around 15 per cent to 25 per cent though mall operators expect the current retail restrictions to be just a short term measure.

Delhi has imposed a weekend curfew beginning this week. This will cause malls and ‘non-essential’ high-street stores to close on Saturday and Sunday for the foreseeable future and is expected to further bring down mall sales but a full-scale lockdown appears unlikely at present.

Mumbai currently does not have any retail restrictions. It has kept most mall open leading to higher footfalls. However, the city reported over 20,000 positive Covid-19 cases in less than 24 hours on Thursday. This has led to calls for more restrictions to be put in place.

The state government may soon impose stricter restrictions to avoid a healthcare crisis.

January is usually one of the largest-scale sale seasons of the year, especially for fashion retailers. However, brick-and-mortar stores are keeping promotions muted in 2022 due to the current climate.

Prior to these restrictions, sales had reached the pre-COVID levels and retailers expect this disruption to be of short term, says PushpaBector, Executive Director, DLF Retail.

Dear Reader, we at DFU Publications are committed to providing the latest news updates on trade development and insights, to keep our readers informed. Stay tuned. Subscribe to our newsletter.

DAILY NEWS:

• Flipkart, an Indian e-commerce company, collaborates with PUMA on the ‘1DER' line, which features batsman KL Rahul

• Consumers will determine growth of sustainable fashion e-comm in India

• Myntra to offer 1 mn styles from about 7,000 brands at the 'Big Fashion Festival'

• Maharashtra government honors VIP as 'Best Innerwear Brand' for 2021-22

• Nike strengthens retail presences with new store at DLF Mall of India,Noida

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07 January 2022, Mumbai:

Reliance Retail Ventures, a subsidiary of Reliance Industries has invested $200 million in quick commerce delivery startup Dunzo.

The investment will increase RRVL’s stake in Dunzo to 25.8 per cent, The existing investors of Dunzo including Lightbox, Lightrock, 3L Capital and Alteria Capital also participated in the funding round.

In addition to this funding round, both the companies plan to partner for enabling hyperlocal logistics for retail stores operated by Reliance Retail. This will add to Reliance's omnichannel capabilities and also help facilitate last-mile deliveries for JioMart’s’s merchant network.

RRVL said the capital will be used to enable instant delivery of essentials from a network of micro warehouses while also expanding its B2B business vertical to enable logistics for local merchants across Indian cities.

Dear Reader, we at DFU Publications are committed to providing the latest news updates on trade development and insights, to keep our readers informed. Stay tuned. Subscribe to our newsletter.

DAILY NEWS:

• Flipkart, an Indian e-commerce company, collaborates with PUMA on the ‘1DER' line, which features batsman KL Rahul

• Consumers will determine growth of sustainable fashion e-comm in India

• Myntra to offer 1 mn styles from about 7,000 brands at the 'Big Fashion Festival'

• Maharashtra government honors VIP as 'Best Innerwear Brand' for 2021-22

• Nike strengthens retail presences with new store at DLF Mall of India,Noida

Return to homepage