Reliance Mart launches its first hypermart in the royal city of Mysore

Reliance Mart today announced the launch of its first hypermart in the royal city of Mysore at the KSRTC bus terminal. This is the fourth Reliance Mart in the state of Karnataka. Spread across an area of over 70,000 sq. ft, the hypermart stocks a range of over 30,000 products catering to the entire family. The expansive spread of the store makes it one of the largest hypermarts in Mysore and presents a complete family shopping destination for household needs.







Centrally located within the premises of Mysore's busy KSRTC bus terminal, this hyper market will present a never before shopping experience to the residents of Mysore. Shoppers have the option to choose from a wide array of products in every category ranging from food & fresh produce to grocery, consumer electronics to stationery & toys, from personal care products like fragrances & cosmetics to auto accessories, from apparel to furniture & furnishings, from homeware & kitchenware to luggage and travel accessories etc.

The speciality of the store is the fresh fruits and vegetables section which brings in the best produce from the farms to the consumers basket. A live bakery counter section provides shoppers with the unique option of buying freshly baked breads and cakes, a welcome change from the traditional pre-baked and packed products. A distinct shop-in-shop for non-vegetarian products and the extensive grocery range adds to the experience of shopping for daily needs. 'Reliance Mart' also boasts of a host of Reliance's private label brands in select categories which offer superior quality products at affordable prices.

In addition to shopping for their daily needs, consumers can also shop from a wide range of fashion products as well as home & kitchenware. Also available is an auto accessory specialty corner, Reliance Autozone, which offers product and service solutions for the automobile needs of the consumers. Shoppers can give their vehicles a fresh look, add a new audio system or get the tyres checked & replaced at this section while they shop for their other household needs.

Adding to shopper's delight is a quick service food court that offers ready to eat, ready to heat and ready to cook meals to the customers. Members of the family can enjoy a range of delicacies from Continental & Indian cuisines while the lady of the house shops. Customers also have the option to take-away semi-cooked or fully-cooked foods for a delightful meal at home.

The store layout and ambience has been designed specifically to provide customers comfort and ease of shopping. The hypermart is equipped with highly skilled and trained customer sales representatives, wide aisles that display products as per category and several checkout counters aimed at reducing the customer shopping and waiting time.

Speaking on the occasion, Mr. Rob Cissell CEO Reliance Value Formats, said, "Mysore is fast emerging as an IT destination and has an evolving consumer segment who will appreciate the unique retail experience that Reliance Mart offers in terms of the range of products and services. This further comes with the Reliance promise of guaranteed quality at unmatched prices in a great ambience."

In addition, RelianceMart provides its customers with "RelianceOne," a membership loyalty program, designed to deliver customized benefits to frequent shoppers. Under this scheme, customers can earn RelianceOne Points on all shopping in the store which can be redeemed after accumulation. The scheme already has a membership base of more than 9mn customers.

Indian retailers retrench as reform hopes dashed

India's largest supermarket operator, Future Group, is having a clearance sale: its financial service business and flagship clothing brand are gone, and more deals are in the pipeline.

Six months after the government backtracked on plans to allow foreign retail giants such as Wal-Mart Stores and Carrefour to form joint ventures, cash-starved domestic chains are selling assets, shutting stores, and scaling back expansion plans.

It seems improbable that retailers could be in such trouble in India. They have the world's second-largest population, increasingly affluent consumers, and limited competition.

But things are tough for supermarkets, a relatively new business sector in India, with every major chain losing money. The economy has lost momentum, compounding problems of high food inflation and low retail prices, and expensive real estate.

Foreign partners would bring experience, expertise and funds, but many in the industry do not expect a decision on foreign investment in supermarkets before elections in 2014.

"These companies have realised there is no point standing still and bleeding more, waiting for the government to act," said Debashish Mukherjee, partner and vice-president with consultancy AT Kearney.

Alternative Funding
With foreign investment ruled out, many supermarkets, which account for 70% of organised retail in India, are looking to private equity investors or hitting up their billionaire owners for more capital as they continue to bleed.

"Foreign private equity firms are in talks with smaller businesses which are less capital intensive. So this option is ruled out for the big boys," said an investment banker who did not wish to be identified.

Last November, after years of delay, the prospect of a foreign partner appeared tantalisingly close for the domestic chains. India said foreign supermarket operators would be able to own up to 51% of a joint venture.

Industry euphoria proved short-lived. Under pressure from ruling coalition allies, the government backtracked in an embarrassing reversal that has come to symbolise the inability of Prime Minister Manmohan Singh's administration to enact reforms.

Indian traders and middlemen vehemently oppose allowing foreign chains into a USD 450 billion retail industry where 90% of sales are made by informal "kirana" stores, which are generally family run.

Proponents argue the infrastructure and investment that can be brought by the likes of Wal-Mart would go far to ease crippling food inflation and a high rate of food spoilage.

"We are going cautious with our expansion plans," said Mark Ashman, chief executive of Hypercity, the hypermarket arm of Shoppers Stop , which, like many of its rivals, hopes to join forces with an overseas retailer once the rules change.

"If foreign direct investment was allowed, the appetite for expansion for us would certainly be higher," he said.

A smaller future

Future Group, controlled by Kishore Biyani, known as the father of Indian retail, recently sold control of its financial services arm Future Capital to private equity firm Warburg Pincus.

Future , which sells groceries under the Big Bazaar and Food Bazaar brands, announced the deal days after it sold a controlling stake in its flagship clothing brand Pantaloon. The two deals will wipe about USD 1 billion in debt from its books.

"Our intention is to exit from non-core businesses and focus on core retail business," a company spokesman said, adding Future Group aims to be debt-free by the end of the fiscal year in March 2013.

"Two recent deals are not the last ones from us."

Future is now in talks to sell a stake in its food processing and manufacturing business to Japan's Lawson Inc, Japan's No.2 convenience store chain, a source with direct knowledge said, adding a deal would be finalised soon.

Lawson spokesman Shin Ichikawa said the company was in talks with several potential partners about entering India, but declined to name them and said nothing had been decided.

Future Group also plans to exit its insurance joint venture with Italy's Generali, although a possible deal is further off, said the source with direct knowledge who declined to be identified.

Scaling down

As well as selling assets, Future Group, which operates more than 1,300 grocery stores covering 16.5 million square feet (1.5 million square metres) across its different formats, is also scaling down growth plans.

The source said the group will only open 2 million square feet of retail space this fiscal year, instead of a previously announced 2.5 million square feet (230,000 square metres).

Future is not alone. Aditya Birla Retail has shut 50 of its More supermarkets and is closing loss-making outlets in Mumbai, Delhi and Pune to focus on hypermarkets, a company source said.

The company, part of the Birla conglomerate, has also sought another 3 billion to 4 billion rupees from controlling shareholder Kumar Mangalam Birla, the source said.

Even mighty Reliance Industries , the conglomerate controlled by Mukesh Ambani, India's richest man, has been unable to make money in retail after six years in the business and 1,300 stores.

Still, it has no plans for a foreign partner and is pushing ahead with expansion of its supermarket chains.

"Food and grocery retailers have been suffering in most of the major markets," said Devangshu Dutta, consultant with Third Eyesight.

"Many believed India to be insulated, but that's not the case."