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Retail

News Carrefour to shut 2 outlets in Singapore

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arrefour said that it was pulling out of Singapore with the closure of its two existing outlets in the citystate by the end of this year. The French retail giant was the first to introduce the hypermarket concept in Singapore with the opening of its first store in 1997. But Carrefour has found it tough to penetrate Singapore's market of 5.2 million people largely because other rivals are better entrenched with a wider network of branches, many of them near public housing estates. Carrefour's two existing stores are located within distance of each other in the city-state's main shopping and business district.

"Carrefour Singapore announces the decision to close its Suntec and Plaza Singapura stores before end of 2012, since expansion and growth perspectives do not allow reaching a leadership position in the medium and long term," the retailer said in a statement. The decision to withdraw from Singapore is not a surprise, according to a senior executive with an Asian electronics company which is among Carrefour's suppliers. "There was a lot of talk (of closing) from the internal staff and they have been clearing stock for the last two months," the executive, who declined to be named. "They were just not competitive enough."

Carrefour, the world's second biggest retailer behind US group Walmart, reported in March that its 2011 profit dropped by 14.3 percent to 371 million euros ($463 million) amid weaker economic conditions.

Sahara to invest Rs. 3,000-cr in retail

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ahara India is gearing up to invest Rs 3,000 crore for its retail venture, while setting an ambitious revenue target of around Rs 50,000 crore after two years. The group claimed that it will open around 1,000 retail outlets under the 'Sahara Q Shop' brand initially in five states covering 60 cities and towns by 2013. The initiative will kick off from August 15. "The company has made an initial allocation of Rs 3,000 crore towards this business. We will invest according to the need as we go ahead," Sahara India Pariwar Chairman Subrata Roy said. The first-phase launch of Sahara Q Shops, which would have an area of 300 square feet each, will be in Uttar Pradesh, Uttarakhand, Rajasthan, Bihar and Jharkhand. Earlier this year, Sahara had announced its plans to foray into the retail sector under the 'Sahara Q Shop' brand of stores. These stores would market a range of products under 73 categories, including staples, processed foods, personal care products and home care products.

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The company plans to launch retail outlets in 998 towns and cities by March 2013. It is also aiming at revenues of Rs 15,000-20,000 crore in the first 12-18 months and around Rs 50,000 crore after two years. "We are looking to open around 60,000 outlets in the country in the next 12-18 months. These would majorly be company owned," Roy said. He added that the new venture would provide jobs to around 1.43 lakh people gradually within 18 months. When asked about the reason for entering into the new segment, Roy said: "We always try to plan something to enhance the earnings of our workers. This is a very growing business in India. Today the yearly sale of these products in the country is 16 lakh crore and a growth rate of 20 per cent". The customers would be able to place an order for merchandise at these outlets and the items would be delivered at home by the company's sales force. Speaking about the hotel business expansion plans in the country Roy said: "In India, we are going to add around 25,000 rooms in the five star category with in two years. In four star and three star categories, we are going to add around

AgriBusiness & Food Industry w October 2012

15,000 rooms," Roy said. He also said that the company would be launching dairy business in March next year. Replying a query, Roy said Sahara has bought Digicable for USD 52 million. When asked about FDI in retail Roy said: "If it is coming as quality aspect we should welcome anybody and everybody. But most important, which would be suicidal if we allow them to bring products from outside. "It will be suicidal for the country, so the condition should be they have to manufacture here barring certain items which are difficult to manufacture here," he added.

AGRI BUSINESS & FOOD INDUSTRY  

India's only monthly magazine having maximum presence in National & International Exhibitions. Regular topics cover the food processing sect...

AGRI BUSINESS & FOOD INDUSTRY  

India's only monthly magazine having maximum presence in National & International Exhibitions. Regular topics cover the food processing sect...

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