A roundup of happenings in August in the world of retail
IndiaRetailing Insights: The month of August saw the opening of over 80 new stores by various brands as per data collated by IndiaRetailing. Of these, over 29 new stores opened in the South, 24 in the North, 22 in the West, and over 5 in the East.
Of the brands that opened new stores, 26 belonged to the fashion and lifestyle category and 22 to food and beverages.
Notable fashion and lifestyle brands include Tribe Amrapali, H&M Home, Zara, Tata Trent’s Samoh, Highlander, Tokyo Talkies by Brand Studio Lifestyle, Superdry, New Balance, Snitch and Levi’s. In the food category, key brands like Chai Sutta Bar, AbCoffee, Pret A Manger, 6oz Artisan Coffee, Jumboking, and Le Pain Quotidien expanded their presence. This surge highlights the diverse and dynamic growth across both the fashion and food sectors in India.
Brands that opened multiple stores include AbCoffee, The Organic World, Mokobara, Highlander, Tokyo Talkies by Brand Studio Lifestyle, Chai Sutta Bar, Uppercase, and Levi’s. This strategic push by leading brands highlights their focus on strengthening market presence and enhancing accessibility for customers across various locations in India.
August was a pivotal month for Snitch as we continued our offline expansion, bringing our total store count to 25,” said Chetan Siyal, chief marketing officer, of Snitch. “Each new store brings us closer to our audience, reinforcing our omnichannel presence and allowing for seamless interaction with our brand both online and offline.”
In terms of leasing, malls are one of the most preferred destinations for retailers as compared to other retail destinations like Airports. This was also echoed by Nitin Chhabra, chief executive officer, of Ace Turtle in a recent interview.
“When considering the future of retail expansion in India, the landscape is evolving rapidly. While airports present unique opportunities, high-street malls and standalone stores are currently thriving. However, the challenge lies in the rising retail rents, which have surpassed productivity,” said Chhabra.
Key Developments
August 2024 saw notable developments in the Indian retail sector. Brainbees Solutions Ltd., the parent of FirstCry, floated a Rs 4,194 crore IPO. On the solutions provider side, Unicommerce eSolutions’ too got listed. Its IPO was oversubscribed 168.35 times. Expansion was a key focus, with Godrej Interio, Shoppers Stop, and Technosport announcing new store launches. In addition, sports retailer Decathlon shared its plans to invest 100 million euros in India and Lulu Group opened a new mall in Kozhikode.
In F&B, Devyani International shared its plans to reach 2,000 outlets for KFC and Pizza Hut by year-end. While Spencer’s Retail confirmed its exit from Delhi-NCR, Godfrey Phillips India has decided to exit retail altogether and is in advanced talks with various parties to sell its 24Seven chain of convenience stores. Reliance Retail and Clarks ended their joint venture, while Bikaji Foods acquired a 55% stake in Ariba Foods. Lastly, 10Club Homes spoke about opening 30 physical stores over two years.
Funds raised
In August 2024, several companies raised significant funds through various investment rounds. PDS Ltd. secured Rs 430 crore through a QIP, while quick-commerce unicorn Zepto raised Rs 2,850 crore, bringing its valuation to $5 billion. Value fashion retailer Baazar Style Retail Ltd. collected Rs 250 crore from anchor investors and also went public. Velocity earmarked Rs 400 crore to support D2C and e-commerce brands, Raipur-based Zoff raised Rs 40 crore, and Mumbai-based Beco secured Rs 82 crore. The total amount raised by these companies was approximately over Rs 4,000 crore.
The companies have raised funds from prominent investors such as Dragon Fund, Epiq Capital, The Government of Singapore, Nomura Funds, Abu Dhabi Investment Authority, Fidelity Funds, Goldman Sachs, Citigroup Global Markets, and SBI Mutual Fund. Other participants include ICICI Prudential MF, HDFC MF, Kotak MF, Ashoka India Equity Investment Trust, HSBC Global Investment Funds, Allianz Global Investors, and Bajaj Allianz Life Insurance. Additionally, JM Financial India Growth Fund III, Titan Capital Winners Fund, Rukam Capital, and Synergy Capital have also supported the fundraising efforts, showcasing strong backing from leading domestic and international firms.
