US

Sales: $374.5 bn 

Earnings: $12.9

billion 

Stores: 6,800

worldwide

France

Sales: $130 bn

Earnings: $5.2 billion

Stores: 87,422

worldwide

UK

Sales: $102.6 billion

Earnings: $5.5 billion

Stores: 3,729

worldwide

Germany

Sales: $101 billion  

Earnings: $1.5 billion

Stores: 2,221

US

Sales: $77.3 bn 

Earnings: $4.2 billion

 

Stores: 2,258

About Walmart

• Walmart, is an American multinational retailer corporation that runs chains of large discount department stores and warehouse stores.

• It is is the largest retailer in the world and It is also the biggest private employer in the world with over two million employees.

• Walmart remains a family-owned business, as the company is controlled by the Walton family .

About Walmart (Contd..)

• It consists of three retail formats : Discount Stores :size varying from 51,000 square feet

(4,738.1 m2) to 224,000 square feet (20,810.3 m2).They carry general merchandise and a selection of groceries.

Walmart Supercenters : size varying from 98,000 to 261,000 square feet (9,104.5 to 24,247.7 m2).

Walmart Market : is a chain of grocery stores that average about 42,000 square feet (3,901.9 m2). They are used to fill the gap between discount store and supercenters.

Walmart and India

• Bharti Walmart Private Limited is a joint venture between Bharti Enterprises and Walmart.

• Bharti and Walmart hold 50:50 stakes in Bharti Walmart Private Limited.

• The joint venture is establishing wholesale cash-and-carry stores and back-end supply chain management operations in line with Government of India guidelines.

• The cash and carry wholesale facility has been named “Best Price Modern Wholesale”.

Benefits to kirana shop owners from Best Price

• Best Price stores offer them access to quality products at the lowest prices.

• They help kirana stores manage their inventory better by enabling them to purchase in quantities they need and at the time they require

• They have also created an innovative kirana model “My Kirana” that provides them training and insights into areas such as assortment planning, hygiene, in-store displays, inventory management, value added services etc.

• In addition, different education programs for members with customized modules like taxation, food preparation, food safety etc. have also been introduced.

Benefits To farmers

• 7-10% higher price to farmers than what they get from Mandi

• 3-4% incentive for the quality of the produce farmers deliver to Bharti Walmart based on customer requirement

• Expert advice on better crop planning and management• Efficient crop calendar management aimed at catching

early and late seasons for better prices• Opportunity to maximize and improve income by

offering better quality.

Recent developments

• The GOI has announced 51% FDI in multi brand retail.

• Walmart is planning to launch retail stores in India within 18- 20 months. The first stores may be rolled out in the states of Maharashtra and A.P.

• Limited availability of real estate space coupled with high real estate costs would be one of the major challenges before its Indian retail foray.

Recent developments(Contd..)

• Bharti Walmart also sees bad supply chain environment in big cities as another key challenge before its retail foray in view of restrictions on inter-state movement of goods

• Another key challenge before the MNC retailers was to train and provide meaningful employment to local population.

• Though the opposition is against the entry of Walmart, many progressive farmers see it as a win – win situation.

Carrefour

• French international hypermarket chain headquartered in Boulogne Bullecourt, France

• Largest Hypermarket Chains with 1395 hypermarkets at the end of 2010

• Second Largest Retailer Group in the world in terms of revenue and third largest in terms of profit

• It operates in 4 store formatsHypermarketsSupermarketsConvenience Cash & Carry

Carrefour Around The World

Carrefour In India

• Carrefour Wholesale Cash & Carry Opened its first Cash & Carry Store in India on 30th

December,2010 in Shahdara, Delhi

• Currently operates 2 cash and carry stores in India• It plans to enter the multi-brand retail segment with

home-grown retail giant, Future Group• Signed an all exclusive franchise agreement with the

Landmark Group to build up hypermarkets in the country• Kean Noel Bironneau, express “Whole hearted

gratitude to Government of India for taking this great initiative”

Metro

• Metro is the world’s 4th largest retailing• Pioneered by Dr. Otto Beisheim, first C&C store in Germany in

1964 • 300,000 employees from 150 nations are working at over

2,200 outlets in 32 countries in Europe, Africa and Asia• Annual Turnover is € 68 bn• Metro Portfolio Services Metro Cash & Carry Real hypermarkets Media Market and Saturn Galeria Kaufhof

Metro in India

• Metro entered into India by establishing two sales branches in Bangalore

• The first METRO Cash & Carry wholesale center in India opened in Bangalore in 2003.

• At present, there are 5 wholesale centers in operation

• 2 in Bangalore• 1 in Hyderabad• 1 in Mumbai• 1 in Kolkata

Luxury Market in India

• India’s luxury market is pegged at $5.75 dollars and is likely to grow at $14..72 billion by 2015

• India is likely to emerge as the top 10 luxury markets of the world

• According to the BCG ,the shift in luxury market is from owning a luxury brand to experiencing a luxury.

• Consumption of luxury brands has grown 29% in products and 22% in services

GAP in India

• Gap sells clothing, accessories, and personal care products for men, women, children, and babies under the Gap, Banana Republic, Old Navy, Piperlime and Athleta brands

• The $14.2-billion specialty retailer GAP, which has around 3,100 stores across the globe, had revenues of $1.6 billion in 2011

• In India, GAP is operating through franchises and is present in Delhi, Chennai, Hyderabad and Mumbai

• Gap also in consultation with other leading Indian apparels brands which will ease its entry into the Indian Market

Solving Efeso

• It is a top management consultancy firm with a leading reputation for connecting strategy with action

• The company announced its entry into the India market with the acquisition of Gurgaon-based company Q-Spread

• Global retail groups present in India include Walmart, Carrefour, Metro and Tesco. Walmart, Tesco, and Harrods are among the company’s clients

• According to Filippo Mantegazza, they will built knowledge teams in India in coordination with the international experts.

• The company is analyzing the Indian market for single and multi brand retail and cash & carry

• It also plans to target the fast moving consumer goods sector in India

Recent events in the luxury segment

• The worldwide chief of the world's biggest luxury brand Louis Vuitton, Yves Carcelle , blasted India's policy of imposing a 30% local sourcing requirement for luxury groups such as his as 'nonsense'.

• La Compagnie (A company by Regnis Fournier) plans to invest Rs 350 crore in a facility in Puducherry, to make shoe uppers for unnamed luxury footwear brands starting December. It will subsequently produce 100% India-made high-end bags, clutches and clothes for the global market.

• British menswear brand Hackett is set to open manufacturing in India. The company, which has recently formed an equal joint venture with Aditya Birla-owned Madura Fashion and Lifestyle, plans to open some 10 stores in India soon.

• Across India, in cities such as Delhi, Kanpur, Lucknow and Jaipur, a clutch of businessmen are retooling their businesses, hoping to supply to global luxury goods makers keen on setting up shop in India.

• Already, suppliers to brands such as Armani, Polo Ralph Lauren, Veneta, among others, although in a small way, feel that the policy changes will open up a window of opportunity for them.

• But foreign luxury brands, keen as they are to set up shop in India, are not as enthused by the sourcing conditions

TESCO• In August 2008 Tesco had entered

into a franchise agreement with Trent(Retail arm of Tata) to help Star Bazaar, the Trent hypermarket offer, build up its retail business.

• There are 15 Star Bazaar outlets operating in India.

• It is a marriage of the retailing experience of Trent and the backend knowhow of Tesco.

• In Star Bazaar, which draws three to four per cent of its revenues from private brands, Tesco helps in terms of sourcing and developing its own private brands in many categories such as noodles and ketchups

• Private labels help retailers earn higher margins as they save on overheads.

• The 300 staff-strong Tesco Hindustan Wholesale, the wholesaling arm of Tesco in India, taps the Hong Kong office for the needs of Star Bazaar stores.

• Tesco manages three distribution centres, which manage high availability and constantly churn out supplies to the Star Bazaar stores.

• Tesco, which is renowned for its data research and analytics, is also helping Star Bazaar with customer research inputs.

• Armed with its advanced demand forecast systems, auto ordering mechanisms and advanced warehouse systems, Tesco gets over 80 per cent fill rate to the stores of Star Bazaar.

• The company will roll out the 'Healthy Choices' formats at all its 15 stores.

IKEA

About IKEA

• The company is the world’s largest furniture retailer

• Founded in Sweden in 1943 by 17-year-old Ingvar Kamprad

• The company designs and sells ready-to-assemble furniture such as beds, chairs, desks, appliances and home accessories.

IKEA & INDIA

• In one of the biggest Foreign Direct Investment (FDI) initiatives, IKEA has proposed a whopping Rs. 10,500 crore (€1.5 billion) investment to set up 25 stores under the single brand retail category.

• It proposes to invest in single brand retail trading in India through a 100 per cent subsidiary

IKEA & INDIA(Contd..)

IKEA & INDIA(Contd..)

• The company would be selling products like furniture, kitchen utensils, bathroom fittings, tableware, cooking range, toys, leather articles, cosmetics, consumer electronics etc.

• Has also proposed to set up restaurants, food mart, nursing home and publications under its brand name.

• IKEA's foray into India could help transform India's largely unorganized $500 billion retail sector

IKEA & INDIA(Contd..)

• It could have a significant impact on the country's retail sector, vastly improving availability of high-quality, low-price products.

• The company will have competition when it arrives, as India already has at least two big-box housewares retailers, for example - lifestyle, home town, etc.

Recent developments

• India has rebuffed a request by IKEA to relax rules on buying goods locally, raising the prospect of a delay in the world's largest furniture maker entering the Indian retail market.

• the Swedish company sought a 10-year window to comply with the sourcing rules

• It is opposed to the mandatory norm of sourcing at least 30 per cent of the value of products sold from small enterprises in the country

FDI in Aviation

• Foreign airlines can buy stakes of up to 49% in Indian Air Carriers

• Indirect Investment Route• Includes both foreign direct investment and

foreign institutional investment.

Riders Associated

• Chairman & two thirds of Directors need to be Indian Citizens

• Clearance from Home Ministry and Foreign Investment Promotion Board

• Substantial ownership and effective control of the airline being vested in Indian nationals

• All foreign nationals associated with the Indian company will have to undergo security clearance

• Technical equipment imported into India following the investment will require civil aviation ministry clearance

Advantages

• Create access to capital, global connectivity, technology and best practices

• Lead to the establishment of new airlines in India• Increased competition would lead to better

offerings, greater efficiency, cheaper airfares and more power to the passenger

• Healthy re-capitalization of airline companies will promote vital connectivity and bring benefits to all stakeholders including banks.

Problems

• Most domestic carriers looking for money are financially strained and might not be attractive targets for investors.

• Long-term growth potential has been squeezed by high costs and fierce price competition.

• The financial situation of international carriers is also bad