Hyper City Retail, part of Mumbai-based K Raheja Corp, which also owns the Shoppers Stop chain of department stores, has called off plans to launch convenience formats, ExpressCity, announced last year. The retailer is instead shifting its growth plans to focus on the big box format and multi-channel retailing.
Officials said it made better business sense to focus on larger formats since the profit margins in convenience formats were too low. The current crop of convenience formats, including Subhiksha, Reliance Fresh and Spencers, are struggling with the challenges of operating a low-margin grocery business in the face of spiraling real estate costs, high supply-chain costs and tough competition from the traditional formats. Read More »
By Rajani
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Posted in Property News
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Also tagged Argos, Better Business, Business, Business Sense, Ceo, Department Stores, Internet Retailing, Jaipur, Malad, profit Margin, Property Developer, Property Development, Raheja, Reliance, Retail Space, Shoppers stop, Supply Chain Costs
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Indiabulls Real Estate Ltd plans to invest 10 billion rupees to expand its retail business in the next 2-½ years. Mr. Gagan Banga, Group spokeman said that the real estate firm, which also houses the group’s retail and power businesses, expects lease rentals of 10 billion rupees from two of its properties under development in Mumbai by the end of the next financial year.
Mr. Banga, also the Chief Executive Officer of Indiabulls Financials Services Ltd, said that the finance firm plans to launch its first mutual fund scheme by October. Mr. Banga further said that the Indiabulls group plans to focus on agri-based spot trading for its proposed commodity exchange, which is awaiting approval from the commodities market regulator.
