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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.
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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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.
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.
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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19 January 2022, Mumbai:
Fabindia IPO: The company is likely to file the draft red herring prospectus (DRHP) for its IPO worth Rs 4,000 crore with markets regulator SEBI this week, sources have told CNBC-TV18.
Ethnic wear retail store chain Fabindia is likely to file preliminary papers with the markets regulator Securities and Exchange Board of India (SEBI) this week for its initial public offering (IPO), sources told CNBC-TV18 on Tuesday.
Fabindia IPO aims to raise over Rs 4,000 crore via a combination of fresh issue of equity shares and an offer for sale (OFS). While the fresh issue shall be worth more than Rs 500 crore, OFS of shares will amount to Rs 3,500 crore, the sources said.
KEY HIGHLIGHTS
- It is likely to file the draft red herring prospectus (DRHP) for its IPO
- IPO worth Rs 4,000 crore with markets regulator SEBI this week, say sources
- It aims to raise over Rs 4,000 crore via a combination of fresh issues of equity shares & an offer for sale (OFS)
- It has 311 stores in 118 cities Across Pan-India & 14 overseas stores
According to the people cited above, Fabindia is looking at a valuation of nearly Rs 20,000 crore via its fresh issue.
CNBC-TV18 has written to Fabindia to confirm the development and the company’s response is awaited.
The company will use the proceeds from the IPO for growth, expansion, and the scaling-up of its e-commerce business.
A source had told business daily Livemint in December 2021 that Fabindia receives 10-15 percent of its sales from its e-commerce
business and wishes to grow its online presence. Meanwhile, it also plans to add stores in view of the increased footfall after the COVID-19 pandemic.
As per earlier reports, PremjiInvest, an investor in Fabindia, is expected to sell a part of its stake in the company. The firm is backed by a battery of investors, including Lighthouse Funds (funds managed by Axis Alternative Asset Management), Kotak Securities, Infosys co-founder Nandan Nilekani and his wife Rohini Nilekani.
Fabindia has 311 stores across 118 cities in the country and 14 international stores. The company sells garments, home furnishings, furniture, gifts, jewellery, organic food, and personal care products.
Established in 1960 by John Bissell, the company sources its products from villages of India and showcases handloom textiles and furniture to the world. According to the firm’s website, it currently connects more than 55,000 rural producers to the urban markets. The company also runs its own school with nearly 500 students.
cnbctv18.com (The news article has not been edited by DFU Publications staff)
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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."
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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22 January 2022, Mumbai:
Amazon Offers Financial Help In Letter To Cash-Strapped Retailer.
Sale Without Consent: Would Be Violation
Future Group owes 14,000-15,000 crores to lenders as part of the one-time restructuring scheme signed between the retailer and the banks.
But the group failed to honour the payment of the first tranche of Rs 3000 crores that were due at the end of the year.
Lenders are looking to sell Future Detail's small-format stares-Everyday and Heritage Fresh-to recover the dues.
Credits: TOI dt 21-01-2022
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18 January 2022, Mumbai:
Saying it runs contrary to Prime Minister’s ‘Digital India’ vision, the Confederation of All India Traders has urged FM Nirmala Sitharaman, to waive the mandatory GST registration for selling products through e-commerce platforms. P C Bhartia, President and Praveen Khandelwal, Secretary General, CAIT said, this provision of the Act bars lakhs of traders across the country rom using e-commerce to sell their products. It has become a huge deterrent and a major roadblock for traders looking to embrace digital commerce across the country, they added.
They urged the centre to exempt GST registration for digital commerce as these small retailers have annual turnover of less than Rs 40 lakh, which is the threshold for GST registration. Instead of GST registration, Aadhar number, bank details or similar other measures may be designated as essential qualification for onboarding on e-commerce portals, the CAIT members added.
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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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21 January 2022, Mumbai:
Rising Omicron cases has once again derailed India’s retail sector which now looks forward to the upcoming Budget to drive growth. The sector has demanded several policy measures and incentives to support growth. First demand is the continuation of counter-cyclical fiscal policy for stabilizing business cycles. The policy calls for a reduction in spending together with a hike in taxes in sunny scenarios and an increase in spending coupled with lower taxes in gloomy times.
The sector also demands expedition of the National Retail Policy to harmonize multiple laws that impede its ease of doing business. The government should introduce stable polices and taxes besides focusing on digital facilities. It needs to offer incentives for retailers to ramp up their digital infrastructure to boost supply management and enhance shopping experiences.
Further, retailers demand, government should launch the National Logistics Policy at the earliest to plug the supply chain gaps. It should also hike FDI in multi-brand retail from 51 per cent to 75 per cent. However, GST rates on garments, textiles and footwear need to be reduced to 5 per cent from the current 12 per cent.
17 January 2022, Mumbai:
The Shopping Centres Association of India is sure that mall owners will offer shopkeepers relief as retail limitations to combat the third wave of Covid-19 saw malls shut down to varying degrees across the country.
"This is the third time it's happened, and in the previous two rounds, developers and shopping centres stood behind their tenants and shops," SCAI director Abhishek Bansal told the Press Trust of India.
"They'll stand with their partners in this third wave as well so that everyone gets through this."
Despite SCAI's assurances, many retailers are concerned about the new, rapidly growing retail restrictions, which come just as the wedding season approaches.
This is a time of year when apparel and jewellery stores hope to make some of their best sales of the year, and the cancellation of weddings and the reduction of business hours will undoubtedly stymie this.
Many mall owners offered discounts and rent waivers to store owners during the initial and second waves of the virus, and some malls also offered discounts and revenue share models during the recovery phases.
However, other malls faced huge debt obligations and were unable to give big reductions in order to avoid defaulting on the loans.
Reduced operation hours affect not only fashion and lifestyle businesses in malls, but also eateries in food courts and multiplex operators. SCAI is convinced that mall owners would support these businesses in the same way they have supported them.
"The third wave of Covid has once again put businesses under stress," said Kumar Rajagopalan, CEO of the Retailers Association of India, according to ET Bureau. "Different sections of the country have different rules for dealing with it."
This means that merchants and malls will communicate to one another and try to come up with new arrangements to help them weather the storm."
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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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19 January 2022, Mumbai:
The third wave of COVID-19 in India is likely to stave off an estimated 8 per cent of fashion retailers’ revenues in the current financial fiscal, says credit rating agency ICRA.
Key highlights:
- Fashion retailers to achieve 70-72 percent of pre-pandemic revenue.
- The retailers are set to be hit by restrictions in place adds the report.
- This hit is marked by an excessive stock pileup.
- Omicron wave remains the downside risk
In the current fiscal, fashion retailers are expected to achieve 70-72 per cent of their pre-pandemic revenues as against the earlier projection of 78-80 per cent.
Their sales, however, rebound to those witnessed post the second COVID-19, adds the ICRA report
The agency gives the fashion segment a negative outlook as it expects retailers to return to pre-COVID levels by the second quarter of the next financial year.
The recent surge in Omicron cases has once again brought with it localised restrictions in the form of night curfews and timing restrictions.
As a result, retailers are now stuck with excessive stocks and face a greater risk of significant inventory markdowns.
While the third wave will dent profitability in Q4 FY22, the credit profile of large, listed entities is expected to remain adequately supported by strong balance sheets, says Sakshi Suneja, Assistant Vice President, ICRA.
Credits: Business Standard
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15 January 2022, Mumbai:
In its Budget wishlist, IKEA India also called for reduction of GST rates "on products that are basic to life at home” and the lowering of customs duties on good quality furniture and home products.
Swedish furniture and home furnishing retailer IKEA on Friday said it is looking forward to the rollout of India’s national retail policy, bringing offline and online retail into a single policy framework and reducing the compliance burden.
In its Budget wishlist, IKEA India also called for the reduction of GST rates "on products that are basic to life at home” and the lowering of customs duties on good quality furniture and home products.
"The economic impact of the pandemic on the income of people in India must not be underestimated. To stimulate demand, it is important that money is increased in the hands of people and products remain affordable,” IKEA India CFO Preet Dhupar said in a statement.
As a result of the pandemic, she said, "We also see life at home take an increasing significance as hybrid work models will continue to emerge in the future.”
Stating that the retail sector has played an important role in the lives of citizens during the pandemic, she said, "We look forward to the roll-out of the National Retail policy, bring offline and online retail into a single policy framework, reduce the compliance and regulatory burden, give industry status to retail along with financial incentives to large scale projects.”
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