After a year of debauchery for retailers, lifestyle retailer Shoppers Stop has aggressive plans to expand its core business. With a strong focus on growing its omnichannel, private label, beauty and private shopper segments; Venu Nair, the company’s managing director and CEO, told CNBC-TV18 in an exclusive interview that the retailer expects to double its business in three to four years.
This aggressive expansion plan calls for the company to open 10-12 department stores and 5-10 beauty stores by March 31, 2022, while expanding the digital and omnichannel businesses by 15-20 percent, if not more, over the next three years , will increase.
Private labels and the beauty business will be the other two growth drivers. Shoppers Stop aims to bring new private label products to market that meet emerging lifestyle needs and more than double the private label business over the next 12 months. On the beauty front, the company will launch 50 new brands over the next 12 months while doubling its online beauty business.
Shoppers Stop confidence could also curb the faster-than-expected rebound retail has seen from the second wave lows, with some regions rebounding near pre-2019 levels of COVID. and the industry says consumers have more confidence not only in visiting the stores but also in the time they spend browsing and shopping in the stores.
A similar vote of confidence came from CMD Gautam Singhania of the Raymond Group, who told CNBC-TV18 at the launch of its new shirt collection “Vibez” that all business is recovering and is currently between 90 and 110 percent of the level before Covid.
Beer company punished for forming a cartel
India’s antitrust agency has fined beer companies for antitrust in the sale and delivery of beer in various states and UTs across the country, including through the All India Brewers’ Association (AIBA) platform from 2009 to October 10, 2018, with Carlsberg India since 2012 and AIBA, which has served as a platform to facilitate such cartelization since 2013.
What did the brewers do?
Under the CCI’s order, United Breweries Limited (UBL), SABMiller India Limited (now renamed Anheuser Busch InBev India Ltd (AB InBev ‘upon acquisition) and Carlsberg India Private Limited (CIPL) have the price coordination in Andhra Pradesh, Karnataka, Maharashtra , Odisha, Rajasthan, West Bengal, Delhi and Puducherry.
These companies also restricted beer supply in Maharashtra, Odisha and West Bengal, which is in breach of the provisions of Section 3 (3) (b) of the Act, among other violations found.
Carlsberg and UBL, fined Rs 120 crore and Rs 750 crore respectively, told CNBC-TV18 that they are reviewing and reviewing the order after both companies were granted a fine under the provisions of Section 46 of the Act – 40 percent on UBL and 20 percent on CIPL.
In the meantime, AB InBev has received a 100 percent discount, which means that Ab InBev will not be penalized by the regulator.
âThe CCI decided that we were the only company that had not received any penalty and stated that we had ‘taken internal final administrative and personnel corrective actions’ and ‘put in place widespread compliance programs for its employees’. We appreciate these comments as we take compliance and ethics very seriously, âsaid a spokesperson for AB InBev India.
Junk Food Warnings Soon?
India’s food safety agency could introduce long-pending front-of-pack labeling (FOPL) on packaged foods to curb junk food consumption. Food Safety and Standards Authority of India (FSSAI) CEO Arun Singhal said earlier this week that packaged foods need an easier way to display information about the effects of their consumption so that consumers can make an informed choice.
The regulator has been pushing for this for almost two years, and last year it proposed it in the draft Labeling and Display Ordinance, but discussions with industry have not been successful.
The regulator wants packaged foods to be color-coded red on the labels on the front of the packaging on packaged foods that are high in fat, sugar, and salt.
According to industry sources, a few in the industry have raised several concerns, including concerns that an alert could discourage consumers from purchasing the products, which would then affect sales by food companies.
Some also say that opinions differ on the type of labeling, which ingredient or substance should be displayed in the FOPL. FSSAI’s Singhal also said there was consensus on most technical issues that the type of labeling was still to be determined with industry. For now, the FSSAI has conducted a survey in IIM Ahmedabad, on the basis of which, Singhal said, regulations will be drawn up.
New addition to FMCG personal care
RP-Sanjiv Goenka Group announced Thursday that it has entered the personal care segment with the launch of skin and hair care products through its FMCG company, Guilt Free Industries, and is targeting Rs 400-500 crore in sales in four to five years.
In order to keep up with the growing trend towards natural products, the group has launched shampoos, hair conditioners, face washes and face creams based on natural ingredients under the Naturali brand.