Retail News Update » Debenhams

Wal-Mart retail plans on track

admin — Thu, 21 Feb 2008 13:26:56 +0000

Global retail giant Wal-Mart said it will have no problem if it does not get to use its moniker on retail store signages in India.�
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Vice-chairman Michael T Duke, who met reporters here today, pointed out that the company, which earns over $90 billion of annual revenues from international markets “operates under no fewer than 52 different brand names, of which only 25 per cent bear the Wal-Mart brand”.�
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Wal-Mart has a joint venture with Bharti Enterprises for a cash-and-carry(wholesale) venture in India. There are no regulatory restrictions on using the Wal-Mart brand in this business, but the company cannot have its brand name on front-end (retail level) stores that sell direct to consumers.�
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This is because while India allows 100 per cent foreign direct investment in wholesale cash-and-carry, it bars any foreign investment in retail that sells multiple brands and products (51 per cent is allowed in single-brand retail).�
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However, a foreign multi-brand retailer can strike franchise deals with an Indian company, allowing for its brand name on store fronts. Among existing examples of such arrangements is the UK-based retailer Debenhams, which operates a department store in Gurgaon.�
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Duke, who was flanked by Rajan Mittal, joint managing director, Bharti Enterprises, also asserted that the combine is on track to unveil its much anticipated retail and wholesale foray in April.�
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“We will unveil the plan for the roll out, the number of stores and the brand among other things at that time,” Mittal said. “We are close to finalising the brand and fleshing it out,” he added.�
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In all probability, the front-end retail stores, the first of which is slated to open in August, will possibly bear the Bharti Retail tag, while the larger cash-and-carry facilities (typically between 50,000 and 100,000 sq ft each and selling everything under the sun and feeding the retail front), will carry the Wal-Mart moniker.�
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The first cash-and-carry facility is slated to open by December (likely in Chandigarh). “Thereafter, we plan to open another two-three facilities in 2009,” said Raj Jain, president and CEO, Wal-Mart India. By 2015, the combine plans to have between 10 and 15 wholesale facilities across the country.�
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Duke’s latest visit to India comes at a time when organised retail, which accounts for barely 5 per cent of annual retail purchases of an estimated $280 billion, has witnessed mounting opposition from political and trade lobbies.

Debenhams,

UK retail major Debenhams to expand in India

admin — Tue, 27 May 2008 10:23:40 +0000

LONDON: Britain’s largest retailer, Debenhams, has announced plans to expand its presence in the Indian market in order to achieve its target of more than doubling international sales over the next four years.

The company which opened its first Indian store in October 2007 in Gurgaon with partner Planet Retail, will set up another two outlets in the city before the end of the year, followed by significant expansion over the coming decade, the Independent reported today.

“I would be disappointed if we do not have 30 stores in India in 10 years’ time and that is proper department stores,” said Francis Mc-Auley, the company’s international director.

“The Indian market has a real appetite for Western brands and the education and understanding of the young people is second to none,” he added.

The company’s 43 international outlets, which are operated by franchise partners, are on track to hit the 280 million pounds sales target for the financial year to August.

For the next four years, Debenhams wants the sales to reach the 600 million pounds-mark from 90 department stores, said Francis Mc-Auley, the company’s international director.

The company’s focus in the near future will be India and Russia, the daily said.

Debenhams is targeting India’s upper and middle-class shoppers

Marks & Spencer bids to boost sales with ‘discount vouchers’

admin — Fri, 20 Jun 2008 10:01:47 +0000

Marks & Spencer has distributed almost one million “discount vouchers” in an attempt to boost sales ahead of next month’s trading update.

The retailer is repeating a “families and friends” promotion it ran for the first time last February. More than 70,000 staff have been sent a dozen vouchers, offering 20pc off clothing, food and homewares. Staff have been asked to give the vouchers to friends and families, although in February a number were sold on eBay.

“It was a very well received promotion,” said an M&S spokeswoman.

The vouchers are valid for use between next Thursday and Saturday. M&S’s first quarter finishes at the end of the month.

The promotion is likely to spark renewed fears about current trading at M&S. The retailer is also running a promotion on champagne and wine, as well as offering 30pc off furniture.

Sir Stuart Rose, executive chairman of M&S, is due to update investors on first-quarter trading at the retailer’s general meeting in July.

Like all retailers, M&S has been hit hard by a downturn in consumer confidence. Recent reports have also claimed that Debenhams and Next are winning back market share lost to M&S in recent years.

“We expect market conditions to remain difficult for the foreseeable future,” said Sir Stuart in May when he announced full-year results.

M&S shares have almost halved over the past 12 months, despite the group reporting profits of more than £1bn. The shares closed little changed yesterday at 342p.

Debenhams reports recent sales rise

admin — Wed, 25 Jun 2008 07:01:43 +0000

In a trading statement which was brought forward from July 3, Debenhams said like-for-like sales rose 1 per cent in the ten week period since April 15.

Gross transaction value for the 42 weeks to 21 June 2008 was 1.3 per cent higher than the same period last year. Although like-for-like sales were down by 0.6% for the 42 week period, over the ten weeks since the last trading update at the interim results, like-for-like sales have grown by 1.0 per cent.

Debenhams’ new 130,000 square feet flagship store opened in Liverpool at the end of May and is trading ahead of expectations the firm said.

Rob Templeman, Chief Executive of Debenhams, said ‘In light of the tough trading environment across the whole UK retail sector, we are pleased with customer response to our new ranges and, as a result, our improving sales performance for the period. The strength of Designers at Debenhams is particularly pleasing. We continue to take market share across our key product categories.’

Bahrain City Centre brings retail firsts to Bahrain

admin — Mon, 08 Sep 2008 07:43:58 +0000

Bahrain’s biggest and brightest new shopping destination has announced which retail stores are set to trade first when it opens its doors.

Bahrain City Centre, due to open in September, will have its first major anchor stores including Debenhams, H&M, Virgin, Carrefour and Freedom Furniture trade from day one.

The mall’s General Manager, Derek Rossel, announced the names of the stores saying, ‘Very soon visitors will be able to explore what will be the crown jewel of Bahrain’s retail, leisure and entertainment offer, they can browse and buy from some of the first stores that will be trading.’

‘These stores represent a good portion of the 350 stores that will ultimately be on offer by 2009, and they will give guests a glimpse of the spectacular and unparalleled experiences they can come to expect at the mall.’

‘By next year, when our two Kempinski hotels and the incredible indoor & outdoor Water Park open, Bahrain City Centre will truly become one of the region’s finest shopping, leisure and entertainment resorts.’

When completed in 2009, Bahrain City Centre will also offer hundreds of other ‘firsts’ to the Kingdom. Providing visitors the full spectrum of choice from luxury-seekers to price-conscious consumers.