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Topic : Various formats of organized retail
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Started by : Akhilesh Majumdar, Logistics Manager, Tesco   07 23 2009 04:46:20 +0000
Industry : Retail Chain/LogisticsFunctional Area : Growth(Strategy & Execution)
Activity:  30 views;  last activity : 07 06 2010 20:18:09 +0000

Dear friends, an improvement in economic conditions and low inflation have helped the retail sector stage a recovery in the recent past. After two bad quarters, same store sales (SSS) have again turned positive. While discretionary spending remained low, value retail has been the show stealer during this recovery.

What changes can you see in Retail sector these days ?

 
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1 Tie ups and Joint Ventures
2 A little hard to predict

Tie ups and Joint Ventures

idea posted by Akhilesh Majumdar Logistics Manager, Tesco

We can see some tie-ups and joint ventures in the retail sector. This trend is expected to continue into the coming quarter. It seems, as if monsoon sales will start soon. If this happens, it will boost revenue growth for lifestyle retailers. Despite growing sales, profit margins are continuing to be under stress on account of increasing share of value retailing.

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A little hard to predict

idea posted by Mohan Murari Marketing Manager, Confidential

Future changes in the retail sector could be a little hard to predict at the moment as it’s often the state of the economy which dictates how consumers spend their money, perhaps, only a year ago, people would stay loyal to a particular brand - at present, many consumers are being forced into buying non branded goods especially in food retail. However, once the economy picks up again, it’s highly likely that technology would be the biggest driving force behind many of the future trends in retail. Talking about tie ups and joint ventures they are bound to happen but that again depends on the market condition or we can see termination of JV’s at the same time.

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