A new year has dawned.....or so it seems. I, of course, have woken up from my slumber as far the blog is concerned. Have been active in retail, but haven't got down to writing in sometime. So the new year (ok, so it is the 'financial year'....well 'new' anyway)
Today, I hear reverberation of store on store profitability from two major retailers in India.
So Aditya Birla group says, any store that is not making money by the next fiscal would be shut down.
(http://economictimes.indiatimes.com/articleshow/5748697.cms)
And ITC Lifestyle is looking at expansion in tier 2 and 3 cities and profitable expansion at that!
(http://www.thehindubusinessline.com/catalyst/2010/04/01/stories/2010040150080300.htm)
There is a difference also....while Aditya Birla is shutting down stores in tier 2 cities, ITC is looking at expanding there. The former believes that deep discounting has happened in the smaller cities and these markets are becoming difficult for the retailers (read 'organised retailers').
Just today, had a discussion in office about the tremendous non-mall and non-modern format retail opportunity in India. All suppliers/ vendors listening?
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