Retail News You Can Use

Specialty Retailers Fall in November
New York City (December 4, 2008) The downturn in consumer spending hit the nation's mall-based specialty retailers hard in November, as many leading chains posted drops in same-store sales. Read More

Sears Names CFO
Hoffman Estates, Ill. (December 4, 2008) Sears Holdings Corp. said Thursday Michael D. Collins has been named CFO as expected, effective immediately. Read More

Bakers Footwear's Same-Store Sales Increase
St. Louis (December 4, 2008) Bakers Footwear Group reported Tuesday that the four-week period ended Nov. 29, same-store sales increased 3.6%, compared to a decrease of 3.7% for the four-week period ended Dec. 1, 2007. Read More

Cato Reports 4% Rise in November Same-Store Sales
Charlotte, N.C. (December 4, 2008) The Cato Corp. reported sales for the four weeks ended Nov. 29 of $60.6 million, an increase of 4% over sales of $58.4 million for the four-week period ended Dec. 1, 2007. Read More

Mothers Work Same-Stores Up
Philadelphia (December 4, 2008) Mothers Work Inc., which operates A Pea in the Pod and other maternity-apparel stores, said Thursday that November same-store sales rose 0.6%. Read More

The Buckle Shines in November
Kearney, Neb. (December 4, 2008) The economic crisis hasn't taken the luster off teen-fashion retailer The Buckle, Inc. The chain announced Thursday that same-store net sales for the four-week period ended Nov. 29, increased 15.0% from the four-week period ended Dec. 1, 2007. Read More

Department Stores Struggle
New York City (December 4, 2008) The ongoing economic crisis continued to take a toll on department stores as they headed into the holiday shopping season. Read More

Wal-Mart Outperforms as Other Retailers Slide
New York City (December 4, 2008) Many U.S. retailers reported lower November same-store sales, hurt by both the deteriorating economy and the loss of seven post-Thanksgiving holiday shopping days compared to November 2007. Read More

Macy's Wraps-Up Animated TV Movie
New York City (December 4, 2008) Macy's is putting the finishing touches on a 3D-animated holiday movie called "Little Spirit." Read More

Target Launches iPhone Application
New York City (December 4, 2008) Target is one of the first retail brands to build an iPhone application. Read More

Aldi Utilizes Green-Refrigeration Solution
New York City (December 4, 2008) A new, environmentally friendly Aldi supermarket in East Syracuse, N.Y., utilizes a green-refrigeration solution from Hussmann Corp. Read More

S & P Cuts Sears to Junk Status
New York City (December 4, 2008) Standard & Poor's Ratings Services on Thursday lowered Sears Holdings Corp.'s corporate credit rating to non-investment grade of BB- from BB and its bank-loan rating to BB+ from BBB-. Read More

Williams-Sonoma Posts 3Q Loss
San Francisco (December 4, 2008) Williams-Sonoma Inc. Thursday reported a smaller-than-expected quarterly loss on Thursday and said it amended a $300 million credit line providing for more relaxed covenants, sending its shares up 10%. Read More

Fresh & Easy Reports Same-Store Sales Up
Cheshunt, England (December 4, 2008) Tesco CEO Sir Terry Leahy said last week that comp-store sales for the company's U.S. operation, Fresh & Easy Neighborhood Market, are progressing strongly, according to Supermarket News. Read More

Big Movers in New York Stock Market

JC Penney, Abercrombie & Fitch among big movers

NEW YORK (AP) — Stocks that moved substantially or traded heavily Friday on the New York Stock Exchange and the Nasdaq Stock Market:

NYSE

J.C. Penney Co., down $2.01 at $17.27

The department-store operator said third-quarter profit fell by more than half as consumers took fewer trips to the mall.

Abercrombie & Fitch Co., down $4.65 at $17.79

The teen apparel retailer said weak demand for girls' tops hurt third-quarter profit, and it cut its outlook for the full year.

Freddie Mac, down 6 cents at 67 cents

A tax-related charge led the mortgage-finance company to lose $25 billion in the third quarter; it requested $13.8 billion in government aid.

Nokia Corp., down $1.56 at $12.59

The world's largest cell phone maker cut its global outlook for mobile-device sales, citing rapid changes in consumer spending.

Morgan Stanley, down $1.18 at $12.03

A Fox-Pitt analyst said the banking firm is likely to swing to a loss in its fourth quarter due to sharp equity-market drops.

Boeing Co., down $2.12 at $41.04

The aerospace company is delaying deliveries of its 747-8 airplanes due to design changes and an eight-week strike.

Agilent Technologies Inc., down 22 cents at $20.75

The maker of scientific instruments said its quarterly profit rose 28 percent, helped by increased revenue and lower costs.

NASDAQ

Sun Microsystems Inc., up 4 cents at $4.12

The networking firm plans to cut up to 18 percent of its work force as sales of its high-end computer servers have collapsed.

Retail News You Can Use

OSH Adds SaaS Analytics

Orchard Supply Hardware (OSH) is using a new analytics tool to better understand its customers' shopping behavior and deliver more targeted promotions.

San Jose, Calif.-based OSH deployed Quantivo Retail, a Software-as-a-Service (SaaS) solution from Quantivo, San Mateo, Calif. Quantivo Retail enables the company's merchandisers to do their own analysis without IT's intervention. Since the solution is an on-demand format, the retailer was live within two weeks. The solution is wrapped around a database hosted by Quantivo.

The retailer uses the solution to identify behavioral patterns around customer purchase preferences, responses to promotions and buying trends. To date, OSH has "empowered its marketers and merchants to improve the response rate and overall effectiveness of their promotions by having a deep understanding of their customers' buying behavior," said Brian Kelly, CEO of Quantivo.

Chili's Kiosks Speed Up Service

Chili's Too is easing the commute for travelers passing through Fort Lauderdale Hollywood International Airport with the help of touchscreen ordering kiosks.

The units, which reside at guests' tables, enable travelers to order food and drinks without the intervention of a waiter or waitress. It is also programmed to let guests pay their check, and play electronic games. uWink, Los Angeles, provides the terminals.

"We're pushing very hard to bring cutting-edge brands to travelers across the country, so our partnership with uWink represents an opportunity," said Matt King, president of Delaware North Travel Hospitality Services, the company that runs the Chili's Too location. "I think people are going to be blown away by how much fun they have at the terminals and how convenient they are for international visitors."

The units, which offer menus in English and Spanish, will also be programmed for German, Italian, Japanese, Korean, Chinese, Hindi, Russian and French in the near future.

Hewlett Packard

San Jose, Calif.-based Hewlett Packard introduced the rp5000 point-of-sale system designed for the small- and medium-sized business (SMB) niche. Standards-based PC architecture enables the solution to conduct traditional POS operations as well as support new browser-based applications and integrate with back-office systems.

Keeping "green" enhancements in mind, HP has designed the unit with an oversized cooling solution and power supply, and on-board monitoring and alerts. It also processes extreme environmental and shock testing. In addition, the unit features color-coded ports for easy installation without the need for IT intervention.

Contributed by: Nithin Narayanan

With the Festive Spirit

Written by : Nithin Narayanan

The festival season is round the corner and like every household, shops owners are also re-decorating their stores to showcase the festive spirit. In India 75% of sales is done during the festival period. The festival time is usually the time when people purchase the new items. It is very important to for the retailer to attract the customer not only through new stocks but also with the visual appeal.

Like in every brand communication, EQ (EMOTIONAL QUATIENT) plays an important role even here. It is during the festival season that the retailer can connect with the customer in a more personalized way.

The trend nowdays is to is to have added services which supplements the merchandise, so that customers have an option to have a number of facilities under one roof which otherwise is not available. This kind of an initiative from the retailer gives the impression that the retailer is sync with the festive spirit.

Adequate precaution and care should be taken to display and present new and delicate merchandise as large number of footfalls can take the focus out the goal. Many retailers assume that during the festival season, customers would pour in, without an initiative from the retailer's side.

New merchandise should also be with the festive spirit. The Ensembles in the store as well as the display mannequins should present new merchandise depicting the festival mood. If the communication of the brand is right, it would definitely bring the customers in.

So as always keep the festive spirits high and happy retailing.

Retail News You Can Use

Best Buy Canada Launches Rewards Program With Chase Canada

Burnaby, British Columbia Best Buy Canada has partnered with Chase Card Services Canada, a division of JPMorgan Chase & Co., for the launch of a new credit-card-rewards program.
The Best Buy Reward Zone Visa card from Chase awards customers with two points for nearly every $1 spent on purchases made at any Canadian Best Buy store, or on www.BestBuy.ca, and one point for nearly every $1 spent at over 29 million locations where Visa is accepted.

Staples Begins Layoffs at Corporate Express

Framingham, Mass Staples Inc. has started to lay off employees at its Corporate Express unit as it combines the two companies' operations, according to the Rocky Mountain News. A company spokesman didn't specify how many people would be affected or which locations would be involved.
Staples made a $2.7 billion deal in May to acquire Corporate Express in May.

CarMax Reduces Staff

Richmond, Va CarMax, Inc. announced that it is reducing its service-operations work force by more than 600 associates.
The reductions are being made in a majority of the company's production superstores, where vehicles are reconditioned.

Saks Direct to Expand E-Commerce Sales to Canada

New York City Saks Direct, Inc., the e-commerce division of Saks Inc., has signed an agreement with E4X, Inc. to utilize its FiftyOne global e-commerce solution to allow Canadian consumers to shop and buy online at saks.com
Currently, orders submitted online at saks.com can only be shipped within the United States.

J.C. Penney, Retailers Team with U.S. Department of Energy

Plano, Texas J.C. Penney has joined The U.S. Department of Energy's (DOE) National Energy Technology Laboratory as a part of an effort to encourage adoption of energy-saving technologies for new and existing commercial buildings.
J.C. Penney is among 21 companies, including retailers such as Macy's, Best Buy and Whole Foods, selected to receive awards totaling $15 million as part of the Net-Zero Energy Commercial Building Initiative.

KB Cuts Prices On 200 Toys

Pittsfield, Mass KB Toys became the latest toy retailer to cut prices ahead of a likely slow holiday season. The retailer said more than 200 toy prices have been cut to $10 or less, including Crayola craft kits, NFL and MLB action figures and some Fisher-Price preschool toys.
The news follows Wal-Mart Stores' announcement that it would cut the price of 10 popular toys to $10. Target Corp., meanwhile, said it will shop at competitors stores for toys during fall to ensure its prices are competitive, and added it offers popular toys for $10 or less.

CEO of Foot Locker's U.S. Division Out in Shake Up

New York City Richard T. Mina, president and CEO of Foot Locker Inc.'s U.S.A. division since 2003, has stepped down. According to a company filing with the Securities and Exchange Commission, Foot Locker notified Mina it would terminate his employment as of Oct. 31.

As a result of the management changes, the role of president and CEO will be effectively eliminated, company officials said Wednesday.

Staples Tests Green Delivery Trucks

Framingham, Mass. Staples is testing two hybrid delivery trucks, according to Wired.com. The retailer worked with Isuzu to develop the diesel-electric trucks, which are being tested in Los Angeles and Boston.
The trucks feature nickel-metal hydride batteries, weight-saving measures and a button that turns on the 85-horsepower electric engine mounted behind the transmission.

Payment Card Industry Releases Latest Standards

Wakefield, Mass. On Wednesday, the Payment Card Industry Security Standards Council (PCI SSC), formally published version 1.2 of the PCI Data Security Standard (DSS). Effective immediately, version 1.2 replaces version 1.1, which had been in effect since December of 2006. However, version 1.1 officially "sunsets" on December 31, 2008.
Earlier this year, PCI SSC released a summary of proposed changes that would be included in version 1.2, although the primary objective of the updated DSS was to clarify the existing requirements of version 1.1.

Contributed by:Nithin Narayanan

Point of Sale

Written by: Nithin Narayanan

Point of sale is the area where actual transaction is completed. These displays add to the store décor and serves a substantial promotional role. Most retailer use an assortment of display to highlight the point of sale.

An assortment display is the display in which the retailer exhibits a wide range of merchandise for the customer. With an open assortment, the customer is encouraged to try out new products while shopping for the usual ones. Recently stores have started to sell items in open bulk displays. It was a norm in factory outlets but now branded stores have also followed the suite, but in terms of small merchandise category.

Theme display on the other hand positions a product offering in a thematic environment. a theme is a specific environment to trigger a specific emotion. Incorporation of Tri-Colour on Independence Day, use of Red Colour during Christmas season and so on.

Another kind is the Ensemble Display. This kind of display has become very popular these days. Instead of grouping and displaying merchandise in categories such as Shoe Department, Sports Gears, Trousers and so on complete ensembles are displayed.
This is more comfortable for the customer as they can envision an entire outfit.

Next is the Rack Displays. These racks have a primary used to neatly hang and present the products. Case Displays are employed to exhibit heavier and bulkier items. Combinations of these two displays are also used to maximize shelf space.

All in all the idea is to utilize maximum space inside the store and also to present the products in a pragmatic and convenient manner to the customer.

Retail News You Can Use

Report: Weakest Holiday Sales Since '91

New York City  Holiday sales this year will be the weakest in 17 years, according to a forecast issued Wednesday by TNS Retail Forward. It projects that total retail sales in the holiday fourth quarter will increase only 1.5%, making the 2008 holiday season the worst for retailers since 1991, when sales grew 1.2%.

"Our top-line forecast separates into two distinct groups-the leaders and the laggards," said Frank Badillo, senior economist for TNS Retail Forward, Columbus, Ohio. "Sustaining above-average growth will be non-store and mass retailers. They will see combined growth near 6.0% in the fourth quarter. Continuing to troll the depths will be the home-goods and soft-goods retailers where growth is expected to decline 1% or more."

 

Wal-Mart to Move Sam's Club Headquarters

Bentonville, Ark.Wal-Mart is planning to move its Sam's Club headquarters to a new location. The Sam's Club corporate offices have been located next door to the Wal-Mart home office in Bentonville, Ark., but the company now plans to move to the former Superior Commercial Building, also in Bentonville, and located three miles from its current location.

"This facility will provide Sam's Club with a unique opportunity to house all of its club support functions under one roof and help us improve our focus on serving associates in the clubs and our members," said Doug McMillon, president and CEO of Sam's Club. The company paid nearly $30 million for the 375,000-sq.-ft. building and the surrounding property.

 

L.L. Bean to Expand in China

Freeport, Maine  L.L. Bean is ready to open the first of five stores in China this month.

The Beijing store in the Solana Mall in Beijing, which opens on Sept. 27, will be operated through a joint venture between the Maine outdoors outfitter and Youngone Corp. of Korea.

 

Pier 1 2Q Loss Narrows

Fort Worth, Texas  Pier 1 Imports Inc. said Thursday that it lost $30.2 million in the second quarter, compared to a loss of $43.3 million in the year before, as it reduced operating expenses.

The company also withdrew its previous 2009 profit guidance, which had called for "modest" profit growth.

.

Dress Barn 4Q Profit Down 9%

Suffern, N.Y.  Dress Barn Inc. said Wednesday its fiscal fourth-quarter profit declined 9% as same-store sales dropped 2% amid a continued pullback in consumer spending.

Earnings for the quarter ended July 26 fell to $22.1 million, down from $33.6 million in the same quarter the previous year.

 

99 Cents Only to Close All 48 Texas Stores

City of Commerce, Calif.  99 Cents Only Stores announced Thursday it will pull out of the Texas market, closing all 48 stores because operations are unprofitable.

99 Cents Only said stores in the "very challenging" Texas market were generating about half the revenue of its stores in other states.

 

USA Today Opens Retail Concept in Airports

New York City USA Today, the nation's top-selling newspaper, on Wednesday opened three retail stores at the new North Terminal at the Detroit Metropolitan Wayne County Airport.

The concept, called USA TODAY Travel Zone, is the newspaper brand's first foray into retailing.

 

Home Depot Plans Price Cuts

Atlanta The Home Depot Inc. plans to start cutting prices this week on as many as 1,200 items, from trash bags to toilets, to boost sluggish sales and win back customers who have started to shop at competitors, according to the Associated Press. Prices will be cut between 5% and 50% - although the company couldn't say what the average reduction will be-on about one out of every 25 items found on store shelves.

The Home Depot Inc. plans to start cutting prices this week on as many as 1,200 items, from trash bags to toilets, to boost sluggish sales and win back customers who have started to shop at competitors, according to the Associated Press. 

 

Contributed by: Nithin Narayanan

 

Colour Theory

COMBINING COLORS

The role that color plays in an interior store setting is much more than simply providing something pleasant for the shopper to see. While everyone has a favorite color, it is important to understand the rationale behind color choices. The right color choice can immediately create a mood and reflect the image you are trying to establish. Listed below are color choices and the silent messages they send:

White: Cold, sterile and by itself does not enhance either the image or the product displayed. When combined with another color it can create a striking balance to a color scheme.

Combined with yellow- cheerful and vibrant
Combined with blue -Crisp, cool and a great choice for resort merchandise
Combined with tan - subdued and elegant
Combined with black - rich and sophistication

Black: depressing by nature, it can create a gallery effect and feel. Great when used inside a cooler with halogen lighting or in backdrops that are spotlighted.

Red: Exciting color that is aggressive and warm. Can be used as an accent color on a wall and relays a sense of urgency. Best used for boutique or theme shop or as a seasonal color selection.

Orange: This warm earthy color would be perfect for a shop sporting a natural environmentally friendly image and product. In softer shades of salmon would work well for most retails shops and neutral in nature.

Green: Color of the month & my personal favorite (not only because it is the color of money). It is an excellent choice for a restful setting and highlights all floral in a harmonious color palette

Blue: The color preferred by most people it could be a soothing backdrop to most merchandise.

Purple: A dramatic color choice in its darkest hue and sweet and sometimes neutral in its lighter shade of lavender. Excellent when combined with blue to create a gray-blue-lavender.

Contributed by: Nithin Narayanan

Service Retail Offerings

Written by: Nithin Narayanan

A goods retailer, carrying merchandise such as perfume or apparel has tangible products to offer. The merchandise can be seen smelled, touched, heard and so on. On the other hand, a service retailer who for example repairs mobiles deals with tangible products but the service it provides is still intangible.

I'll take another example of an Airline. The Airline service provides rented seats on its plane; but the quality of services still depends on intangible factors such as perception of the customer, efficiency of operations. As one Airline President remarked "We have 50000 moments of truth out there every day."

Like the goods retailer, the service retailer must consider the quality of its offerings. Airlines have always used the so called No Frills and Extra Service in mostly all their communications. For instance students look for No Frills flights whereas businessmen look for timely departure, direct flights and tourists desire in-flight service. One thing which is crucial here is that the service firm must maintain the level of service and uniformity of operation.

For uniformity employee's appearance, skills, attitude and performance must be consistent. Service assortments also needed to be determined. Width and depth of the assortment are also significant. Width of the car repair would consist of cars, trucks, vans. The depth may consist of various models within any line for example -cars and also the frequency of services- daily, weekly or monthly.

The retailer who has both goods and services into the offering must follow a competitive strategy. For instance Laptops- they have International guarantee schemes of one or two year duration. As mentioned before, uniformity of service is crucial.

The idea behind all this is to keep the existing customer satisfied and loyal and to woo new customers. Also if a firm maintains a good service record, communication through 'Word of Mouth' Channel is also positive.

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• C K PRAHALAD
• BILL GATES
• ALAN GREENSPAN
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International business quiz - continued

6. In __________ the common issue of interest between members is physical place.
 a) Geographical communities
 b) Demographical communities
 c) Subject-oriented communities
 d) Function-oriented communities

Ans: " Geographical communities "

7. ___________ refers to the total market demand under optimal conditions.
 a) Market share
 b) Market value
 c) Market performance
 d) Product potential

Ans: " Market share "

8. __________ usually sticks to a brand or product but buys other brands at times.
 a) Hard-core loyal
 b) Switchers
 c) Soft-core loyal
 d) Both a and c

Ans: " Soft-core loyal "

9. Which of the following is usually adopted by an organization, if its international transactions have increased to a point where it cannot handle them efficiently?

 a) International division structure
 b) Regional management centers
 c) Geographical structures
 d) Product division structures

Ans: " International division structure "

10. Which of the following is not a source of secondary data?
 a) Government/official sources
 b) Published data of international organizations
 c) Trade journals
 d) Data obtained through surveys

Ans: " Data obtained through surveys "

Retail News You Can Use

Spencer's to promote 'fashion'

Spencer's Retail is taking a closer look at fashion merchandise in a bid to boost its contribution to turnover. This will be through the launch of private and foreign labels. The target is to raise the contribution of fashion from a mere 10% to 30%. The price will remain within the 'affordable' bracket for volume turnover. The lines will be retailed form the chain's larger outlets where as much as 25% of the space will be allocated to apparel.
"We have always been known as a food and retailing brand. We now intend to change our image and tap the fashion segment as well," Samar Singh Sheikhawat, vice-president (marketing), Spencer's Retail, said.

Lifestyle to invest Rs 500cr to open 38 stores

The Dubai promoted, Lifestyle chain in India is to be expanded rapidly. An investment of Rs 500cr is to be made over the next four years to add 38 department stores in the range of 40,000 – 80,000 sqft. Currently there are 18 Lifestyle outlets in India. Amongst the cities being targeted are Jalandhar and Ludhiana.

 

Reliance Retail plans future iStores

Reliance Retail has disclosed its plans of opening 50-60 iStores in tier I cities across the country over the next 18 months. About 150 Reliance Digital stores are also in the offing to be opened by 2011-2012.

Koutons targets Rs1300cr this fiscal

Koutons Retail hopes to double last year's turnover and achieve Rs 1300cr this year. The store count will go up to 1,800 stores. A thrust area is 'Family Stores' which will be increased to 100 stores. The company will also go international by opening stores in the Middle East.

 

Spencer's Retail posts loss for 2007-08

The RPG promoted, Spencer's Retail Ltd posted a loss of Rs 149.9cr before taxes for the financial year 2007-08. This was on a turnover of Rs 812.8cr. Post deferred tax credits, the loss would be lower at Rs 89.30cr.

 

Oswal to close down Straps

The Ludhiana based Oswal Group's chain of lingerie stores, Straps, is to be wound up. There are currently 22 exclusive 'Strap' stores in Delhi, Ludhiana, and Gurgaon. No specific reason has been offered or plans for the future.

Contributed by:Nithin Narayanan

 

 

International business quiz with answers

1. A form of piracy where the pirated product is similar in appearance, phonetic quality or meaning (of its name) to the original product, is known as _________.
 a) Reverse engineering
 b) Passing off
 c) Outright piracy
 d) Counterfeiting

Ans: " Passing off "

2. Which of the following is the process of evaluating a loan application to determine the risk involved for the lender and also involves an analysis of the borrower's creditworthiness and the property itself?
 a) Insurance
 b) Underwriting
 c) Hedging
 d) Speculation

Ans: " Underwriting "

3. The per capita income in China increased rapidly in the period between 1978 and 2004 primarily because of _______.
 a) Growth in the global economy
 b) Disintegration of the USSR
 c) Greater association with the US
 d) Economic reforms in China

Ans: Economic reforms in China

4. Which of the following refers to a group of buyers in a market who are more conservative than the innovators and the early adopters in making purchase decisions, but less conservative than the late majority and laggards?
 a) Early laggards
 b) Early majority
 c) Late minority
 d) Late adopters

Ans: Early majority

5. Which of the following was not one of the Multilateral Investment Guarantee Agency (MIGA)'s core services and products?
 a) Information dissemination
 b) Capacity building
 c) Investment facilitation
 d) Providing loans

Ans: " Providing loans "

 

- Contributed by Vaibhav Agarwal

How 3G benefits Consumers and Operators

Users demand better and faster services, and as they start using high-end phones, they want more information, faster data access and multimedia services through their mobile phones. Only 3G technology provides this.

 

What 3G technology actually means?

• 3G is short for third-generation mobile telephony services.
• 3G phones work in higher bandwidths of 15-20 MHz. Currently, mobile phones work on 2G or 2.5G, and use 30-200 KHz bandwidth. Bandwidth is a measure of the width of a range of frequencies used while transferring data from one point to another and is measured in hertz.

How 3G technology will benefit consumers?

• 3G technology and services enable video broadcast and data-intensive services such as stock transactions, e-learning and telemedicine through wireless communications
• Packet-based data provides several advantages over the existing circuit-switched techniques used for carrying mobile voice, like a) Higher call volumes b) Support for multimedia data applications, such as video and photography.
• With 3G you are constantly online and only pay for the information you receive.

How 3G technology will benefit operators?

All telecom operators are waiting to launch 3G in India to cash in on revenues by providing high-end services to customers, which are voice data and video enabled.

 

- Contributed by Vaibhav Agarwal

World's biggest stock exchanges

1. New York Stock Exchange: $21.79 trillion share trades

2. NASDAQ: $11.81 trillion share trades

3. The London Stock Exchange: $7.57 trillion share trades

4. Tokyo Stock Exchange: $5.82 trillion share trades

5. Euronext: $3.85 trillion share trades

6. Deutsche Borse: $2.74 trillion share trades

7. Borsa Italiana: $1.59 trillion share trades

8. SWX Swiss Exchange: $1.40 trillion share trades

Source: World Federation of Exchanges Industry Association

 

- Contributed by Vaibhav Agarwal

Essential things International Business Travellers should remember

Every international business traveller should know the following about the country of destination before leaving

1. What is the size of the country; population and area?
2. What are the top 3 or 5 cities, and why?
3. Who is the President?
4. What are the main political parties?
5. What are the official languages?
6. What is the ethnic makeup of the country?
7. What is the climate and weather throughout the year?
8. What are some of the important geographic features (rivers, mountains, lakes)?
9. What are the major religions?
10. What countries are neighbors?
11. What is the currency and exchange rate?
12. What are the countries biggest industries; national and export?
13. Who are your competitors, and how long have they been established in the country?
14. What are 3 significant issues affecting your industry in this country?
15. What are 3 significant national issues that are in the news in the last 2 weeks?
16. What national holidays or events will be celebrated during your visit

- Contributed by Vaibhav Agarwal

Service Retailing

Written by: Nithin Narayanan

Service retailing in present times has a significant share of the total retail sales pie. Service retailing in general terms can be divided into the following categories-

· Rentals

· Repairs and Improvement

· Non goods

Service retailing can be classified in terms of their tangibility, service provider skill, labour intensiveness, and customer contact goals and so on.

Strategy and its implementation is the cornerstone of any retail business. Although the overall principles of the strategy are the same whether it is service oriented or goods oriented.

In service retailing, the business should be narrowly defined. Human resource is the key difference with merchandise retailer. Parameters such as personnel abilities, financial resources and the lead time to execute the service are important decision in the Strategy Planning.

After the strategy is outlined, the retailer has to plan factors such as Store Location, Store Size, Fixtures, type of ownership, working hours, level of Investment. These factors are common across the board irrespective of the type of retailing done.

Environmental factors are also to be taken into consideration like the competition, economy, political scene, technology, legal restriction play an important role in providing a smooth service for the customer.

Not much is researched about the various parameters describing Service Retailing. But there are various aspects of this kind of retailing which will be written in the subsequent articles.

Business quiz with answers: Top 10 software companies in India

1. Tata Consultancy Services
2. Wipro
3. Infosys
4. Satyam Computer Services
5. HCL Technologies
6. Tech Mahindra
7. Patni Computer Systems
8. i-flex Solutions
9. MphasiS
10. L&T Infotech

- Contributed by Vaibhav Agarwal

Germany - world's biggest exporter

• World's largest exporter: Germany
• Revenues: $1.3 trillion from exports Share: 9.5% of all merchandise exports
• Close behind: China & America
• The 3 together: 1/4th of the world's exports.
• Biggest importer: America, $2 trillion of merchandise imports from abroad, nearly twice as much as its nearest rival, Germany.
• Growth in merchandise exports fell to 5.5% from 8.5% in 2006 as demand weakened in developed economies.

AFP

- Contributed by Vaibhav Agarwal

Retail News You Can Use

Bata turns the corner
Issues first dividend in five years.

Forever in dire straits, Bata India finally seems to have turned the corner. The Company recorded a gross turnover of Rs 890cr in calendar 2007 – up by a substantial 12% from Rs 794cr a year earlier. The quarter ending Mar 08 showed an even higher growth (y-on-y) at 19.8%. Profits were up by 18% to Rs 47.44cr. The good cheer on the Bata's platinum jubilee (75 years inspired shareholders to confirm a 15% dividend – the first in five years.

Bata honchos credited their policy of modernization and retail restructuring started in 2004 for the turn around. Future plans would continue along these lines. Over 200 stores, located in new untouched areas, are being planned over the next year. This year alone, 60 new shops and 30 upgrades are expected. An expenditure of Rs 480cr is in the offing for this. The focus will shift from Bata's old strength, family outlets, to large format stores. These new concept stores will be spread between 3,000 to 10,000 sqft. Franchising these new behemoths would help Bata side-step the Rs 2cr required for interiors. Smaller shops will be financed through cash accruals. Bata already operates 1100 stores run almost entirely by Company staff.
In a sign of the time, Bata India has sold off its Hawai brand to Brazilian company Alpragatas for Rs 3.90cr. The Company blamed cheap duplicates in the unorganized sector.

Failed JV's leave Indian retailers unfazed
Pantaloon gets out of one and into another Still seen as a foreign concept, modernization of Indian retail resulted in a number of JV's between foreign and Indian corporates. Some of these have got unstuck. This has not shaken the appetite of Indian retailers for more.

Arvind Mills and Diesel BV of Italy finally called it quits for their JV (Diesel Fashion India Arvind) of just over a year (Apr 2007). Diesel had a 51% controlling stake. The official reason given was that both parties felt that the agreement would restrict their future expansion plans. More than likely, there was a conflict of interest on overlapping product groups: casual apparel for men and women, bags, women's lingerie, innerwear for men, watches, jewellery and shoes.

Pantaloon Retail did not hold back its punches when it blamed UK based Lee Cooper for pulling out of their JV (see Rakesh Biyani's statement in the box). The Future Group will, however, continue to sell Lee Cooper products in India under the licencing arrangement with the UK company. Currently there are 32 exclusive stores and the brand is also available in MBO's. The JV, set up in 2006, was an equal partnership between Lee Cooper and Indus League Clothing, a Future Group company.
The news of failed JV's hardly seem to faze Indian retailers who are seeking more tie-ups:
Pantaloon Retail formed an equal JV with French apparel firm, Celio. This would add one more brand in the retailer's arsenal. It is being positioned between mass and luxury.

Contributed by:Nithin Narayanan