I am Back

Monday, May 4, 2009

I am Back....

Its been almost 1 and a half year since i post anything here.....

I dont really know why i was away from it for so long. But its never too late and here i am , running after retail news again.

Right now the retail in India is facing tough time. Retailers are unable to pay their suppliers on time and emphasizing on returns like anything. The main reason ofcourse is the customer entry in the malls and stores. It has gone down drastically and those who are entering into the malls are not spending free handindly. Some of the big retailers are finding very difficult to survive in this situation. Vishal Retail is one of them and has lost a huge money in the venture. Spencer's is finding very difficult to keep the opexes on track. Subhiksha , as we all know has been doomed because of the wrong management practices.
This is the era of cost cutting and the retailers are ready to sell their space to the concessionaires. Today they are open to give spaces in their stores to anyone irrespective keeping in the view of nature of thier business and concessionaire's business.
The rent is the biggest culprit of increasing opexes , but thank god , the fallen prices of real estate gave some sort of cool breeze to the retailers. The companies are approaching the owners of the real estate and they are more then happy to reduce it (at least they are getting something , because in current situation it doesn't seem that any one would be ready to give such higher prices).

We all are hoping that this global turmoil will come to an end pretty soon the retail industry in India will soon become a shining industry as it was an year ago.