According to a source close to the deal, the gourmet food format is likely to be integrated with Reliance Fresh “wherever possible,” (upmarket localities) as a shop-in-shop format. This would help M&S get immediate scale in food business. There are 491 Reliance Fresh stores that sell food, FMCG and fruits and vegetables and this figure is likely to touch 1,400 by the end of next fiscal.

“The implications of this particular JV are much deeper. It’s much more holistic in nature and therefore taking long to seal,” the source added.

The $16-billion M&S, operating in the country through a franchisee arrangement with Planet Retail since 2001, is in the midst of charting a new India strategy aimed at accelerating expansion in the domestic market. It recently slashed prices by 20% to attract more footfalls in the stores and taking prime space in malls to open more stores.

Planet Retail was earlier a 51:49 JV between Indonesian NRI VP Sharma and Pantaloon Retail. The JV has now been called off and the brands that it was managing has been divided into fashion (Sharma) and sports (Pantaloon).

Indian government allows foreign retail companies to invest up to 51% in Indian retail companies on the condition that they sell goods under a single brand. It also allows 100% foreign investment in wholesale business. What it still does not allow is foreign investment in companies that sell goods of more than one brand directly to consumers.

The fear is that such a move would kill small grocery businesses – the mainstay of everyday shopping in India. So, while Starbucks, Louis Vuitton and M&S are allowed to come in as they sell goods under a single brand globally, Carrefour and Wal-Mart are not allowed to sell to consumers directly as they sell thousands of brands.

Informed sources said the senior Ambani’s core team has made significant progress in its talks with M&S, which also had preliminary engagements with other Indian corporates like AV Birla group, Mahindras, Trent and even the audit firm Lodha &Co.

Clair Foster, M&S’ spokesperson in London, declined to comment on market rumours. The UK retailer operates more than 20 stores in India out of the 760-strong network globally. M&S recently set up a business development team in Bangalore under senior executive Spencer Sheen to rework the India gameplan.

Sources said M&S would settle for a 50:50 JV with Reliance, in a marked departure from its earlier stance that it would like to keep the maximum permissible 51% stake under FDI regulations in single-brand retaiing. Troubled by stagnant growth in matured markets, M&S is looking to rapidly scale up operations in expanding economies like India and China.

M&S may have found a match in Reliance, which is carrying out one of the most ambitious retail rollouts in this part of the world. For Reliance, the UK retailer’s stature as a leading global mid-market fashion trend-setters will augment its key apparel retailing vertical.

In context, it may be mentioned that Reliance has adopted a pragmatic approach of floating joint ventures that may help bring in critical domain expertise or a definitive brand edge. Its JV with Citigroup for retail financial services, and another one with US home improvement company Lowe are pointers in this direction.

All profits generated from the charge will go to environmental charity Groundwork and be used to create or improve ‘greener living spaces’ such as parks, play areas and gardens in neighbourhoods around the UK. It is expected that around 40 neighbourhoods will benefit in the next twelve months.

The unprecedented move follows a successful trial period of charging for food carrier bags in over 50 M&S stores in Northern Ireland and the South West of England. The trial has seen customers’ use of food carrier bags drop by over 70% and raised over £80,000 for Groundwork. This money is now being invested in six projects across those regions including the development of the Daisy Hill Woodland in Newry, the creation of a play area at the Old Warren Community Centre in Lisburn and improving a green space at Woodhay Road in Plymouth.

Sir Stuart Rose, Chief Executive, Marks & Spencer said “This move lies at the heart of our 100-point eco plan, Plan A. We want to make it easy for our customers to do their bit to help the environment and our trials have shown us that they want to take action. Just imagine if M&S customers right across the UK cut the number of food bags they use by 70% – that’s over 280 million bags they’d be saving every year. “On top of this, our customers will be raising valuable funds to go to our partner charity, Groundwork, to invest in much-needed green spaces in our neighbourhoods.”

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.

Whilst it is proving difficult to continue growing sales from their existing core businesses, I think there is evidence of some good examples of retailers broadening their horizons beyond their traditional markets and areas of expertise.

Expansion into new business areas is hardly a new phenomenon but as the market has toughened it has become more of an imperative for many companies. The search for new revenue streams has led more retailers into the area of ‘venturing’, which can take a variety of forms: from the setting up of a formal joint venture company with a third-party, through to the simple creation of a revenue-sharing arrangement where a retailer sells products in their store or on their website using another company’s recognised brand name.

As with many initiatives in the retail sector, it is the supermarkets that have led the way, setting up joint venture businesses that have taken them into new areas, such as financial services.

Tesco and Sainsbury’s were the front runners into this sector when they teamed up with big banking names to provide their own services just over a decade ago. The former linked with the Royal Bank of Scotland to set up Tesco Personal Finance, and the launch of a combined debit and loyalty card was swiftly followed by credit cards and insurance policies. RBS recently agreed to sell its 50 per cent stake in the venture to Tesco for £1 billion.

The key to success with such ventures is ensuring that each partner’s skills are complementary and that they have the same objectives for their businesses and for their brands. There are plenty of learning points, such as making sure that the culture of both organisations are aligned, and it crucial that control of the joint venture entity is shared, with a clear understanding of who is the dominant party.

As well as joint-ownership venture arrangements, some retailers have taken stakes in other businesses to extend their reach. A good example is Ocado, in which the John Lewis Partnership, Waitrose’s parent company, has a share. Again, the objectives of the parties involved are firmly aligned, which in this case centres on the fundamental aim of delivering food with a high level of customer service.

Joint venture deals are also being used to drive revenue growth through entry into emerging markets. Over the past year or so, we’ve seen UK retailers announce a series of joint ventures in India. Earlier this year, Hamleys announced a joint venture with Reliance Retail, one of India’s largest industrial conglomerates and this has followed the likes of Marks & Spencer, which currently has 14 stores in India with Planet Retail; Wal-Mart, set to open its first cash-and-carry with India-based Bharti by December 2008; and Giorgio Armani, which has entered into a joint venture with real estate developer DLF to open stores which will sell and distribute various Armani brands.

And it’s not just UK companies looking overseas for new opportunities – businesses here have plenty to offer in terms of market knowledge and expertise. Carphone Warehouse recently announced a joint venture worth £1.1 billion with American electrical giant Best Buy, which will see the two businesses open ‘electricals supermarkets’ in the UK and across Europe from next year.

As times become ever-tougher for high street retailers the need to look outside their core businesses for new opportunities will become stronger, so we may well see more innovation through venture type activities in the future.

Article by Helen Dickinson

It moved up two places from last year’s poll, beating Microsoft into second place and Mercedes Benz into third.

Google also topped a poll of “superbrands” as judged by professionals earlier this year.

No supermarkets made it into the top 100 superbrands in the survey of 2,200 consumers. It is thought confidence may have been hit by rising food costs.

Among leading supermarkets, Asda dropped 253 places, Tesco 230 and Sainsbury’s 194 places compared to the 2007 survey.

But premium food brands performed better and Marks & Spencer was voted into the top 20.

Stephen Cheliotis, chairman of the Superbrands Council which commissioned the research, said: “Lifestyle brands, particularly those in the technology sector, have considerably more sway with the public than everyday staples such as the supermarkets, which now seem further than ever from the affections of the British people.

“As the spectre of rising food costs continues, they are likely to come under further scrutiny.

“The results are also a further sign that Google is continuing its dominance in the UK. It is clear that Google is the brand that people value at work and in their personal lives.”

The Superbrands Council is a group of marketing, advertising and media experts.

Members compiled a list of more than 1,000 brands according to quality, reliability and distinctiveness and this was then passed on for consumers to rate.

The group, which also sells food and homewares, said customers would be able to order clothes, lingerie, as well as selected beauty and home accessories from its website and send them to friends and family abroad in time for Christmas.

The move is part of Marks & Spencer’s (M&S) plan to grow sales at its M&S Direct home shopping business to ($773.3 million) by 2010-11,as well as its commitment to expand overseas.

“(We) have deliberately selected markets where we currently don’t have stores, but where we know through extensive feedback, that there is a demand for our goods,” Carl Leaver, M&S’s director of international, home and retail, said in a statement.

Deliveries will cost 10 pounds to France, Germany and Spain, and 20 pounds to the United States, Canada, Australia and New Zealand.

The launch of international delivery follows a series of new additions to the online business, including the launch of an online wine club, the introduction of 3,000 premium “white goods” such as washing machines and fridges online, and the development of a portal for corporate gifting.

New Media Age originally reported in September that Sky was in talks with etail specialists (New Media Age 4 September) to launch a service. The service, provided by Digital Window, allows visitors to compare over 3.5m products from high street retailers including Comet, Woolworths and Next. Users then go through to the retailers’ sites to buy.

The site will offer targeted product recommendations to visitors as they move through its portal. The move into online shopping comes as Sky launches a Christmas site, sponsored by Marks & Spencer, which includes TV listings the period, games and gift ideas.

Sky recently added new sites to its portfolio including Sky Motoring, Sky Travel and Sky’s entertainment portal. Andy Jonesco, MD of Sky Online Business Unit, said, “Sky Shopping offers a fantastic online retail experience made even richer and more relevant by targeting products by site editorial.

The launch of the Christmas hub also shows our agility in creating bespoke seasonal sites which can harness the rich and diverse editorial from elsewhere on the portal.”

Digital Window also powers shopping offerings for Metro and The Sun.

Marks & Spencer is known for its international quality and value for money product range. The new store’s product offering includes Men’s wear, Women’s wear, Kids’ wear, Home Décor, Lingerie and Beauty Products.

Mark Ashman, CEO Marks & Spencer India, in an official communiqué said – “We are happy to bring the M&S brand to Ahmedabad as we grow our presence in the Indian market. With a significant business community in Gujarat that has been exposed to Marks & Spencer through travel overseas for business or pleasure, there have been numerous queries about when we will open our 1st store in this market. With every new store we reaffirm our commitment to bring nothing but the best to the quality-conscious Indian.”

The women’s wear range has something for everyone, from formal smart wear, casual wear and winter wear for women of all ages. The store especially offers an extensive line of lingerie that includes shapewear, sleepwear, everyday bras, knickers vests and collection bras.

The Men’s line offers formal wear from the exclusive Autograph Collection, the casual range from Blue Harbour and selected accessories to match. Kids from every age group too have something for them in the store, starting from a line of clothing for new-born babies all the way to Older Boys and Girls. Marks & Spencer has also recently launched the Home Décor collection in India – it showcases an impressive and colourful line of classy Glassware, Kitchen ware, Bath and Home linen accessories.

About Marks & Spencer:
Marks & Spencer (M&S) is one of the UK’s leading retailers, offering high quality, great value clothing, as well as home products and outstanding quality food. M&S employs over 75,000 people and has over 600 stores in the UK and over 275 stores in 39 territories around the world.

Finest range meals are available as part of the Valentine’s Day offer, which includes a side dish, dessert and a bottle of wine.

Marks & Spencer (M&S) is also engaging in a similar promotion but Tesco claims that its deal is better for consumers.

Commercial director Richard Brasher said: “The Finest meal for two offer means customers can enjoy a special meal with a decent bottle of wine for a fraction of the cost of going out.

“And they tell us that the Tesco deal is better than the similar M&S offer because it provides the quality they want but at a cheaper price and is more convenient for them to buy.”

A similar promotion was unveiled at the company before Christmas and this deal is available at 500 stores.

M&S’s £20 ‘Love In’ promotion is also centred around Valentine’s Day.

Last week, TNS said Tesco had the lowest sales growth of the big four supermarkets, largely because of its discounting push.

Under the contract, npower will provide the retailer with 2.6 terawatt-hours (TWh) of wind and hydro electricity from April. That’s enough to power all of the retailer’s stores and offices in England and Wales.

The contract also allows for a significant amount of the supply to be purchased directly from independent small-scale generators of renewables. Marks & Spencer has pledged to purchase enough renewable electricity to power its entire UK portfolio of stores and offices.

From a 2006/07 baseline, the retailer has reduced its like-for-like electricity consumption by more than 6 percent and sourced more than 30 percent of its electricity from renewable sources.

In its 2007 corporate responsibility report, the retailer announced plans to make its UK and Republic of Ireland operations carbon neutral, landfill-free and sustainably sourced without passing on the extra cost to customers.

Marks & Spencer also has eco-factories in Sri Lanka and Wales that harness renewable-energy and recycling technologies.