Vishal News

8/8/2019 Vishal News

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http://www.retail-digital.com/news

News no 01

Vishal Retail amid danger on continuous

losses

Vishal Retail struggles to curb major operating losses;

proposes to sell off its core business to the Shriram Group.

Prajakta Ambre | Tue Sep 14, 2010TAGS: India retail news, Shriram group, TPG, vishal megamart, Vishal Retail, vishal retail selloff deal, vishal stocks slip, vishal stores

Vishal Retail store in India

On reporting a net loss of Rs. 194.8 million for the past six quarters, Delhi-based retailer VishalRetail proposes a sale of its retail and wholesale business to the Shriram Group and the Indianunit of a global PE investor TPG, respectively for a total estimation of Rs. 100 crore. The


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proposed deal may include all fundamental assets and certain liabilities belonging to thebusiness.

This latest move defined by the retailer is backed by a series of operational losses and strugglessince past two years. However, the company has not confirmed any financial information on the

deal structure, leaving investors amid confusion.

India faced a major slump in 2008 when the winds of recession hit the country adversely,creating a negative impact in major sectors including retail. Visha Retail had extended itsoperations during the slowdown period but due to weaker customer traffic and dwindlingearning, the company faced major liquidity issues. Several counteractive measures like closingdown warehouses and loss- making stores, reducing manpower were initiated by the company tocurtail the losses; however, the retail firm continued to slip down.

Hence, the latest deal is the only hope for Vishal Retail as the company has been striving to get astrategic mentor to get rid of debt from certain creditors and run the future operations.

Visal Retail also needs to ensure that the company has managed to derive a fair value from thesale of its two core businesses to be disposed to the respective owners. Once the same activity iscompleted, the company is left with only four properties in the domestic regions on Hubli,Dehradun, Jabalpur and Kolkata. Investors should ideally wait till the Vishal Retail Managementconfirms the news.

Stocks of Vishal Retail were trading at Rs56, up 10.13% in a Mumbai market that was up 1.56%in the early morning session on the first day of the week.

News no 02

FDIis key to technology, funds for retail biz:Rajan Mittal


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Our Bureau

Hyderabad, Sept. 14

Mr Rajan Mittal, Vice-Chairman and Managing Director of Bharti Enterprises, has said that Bharti-

Walmart would make a southern foray in 2011.

We are likely to start off with Andhra Pradesh to start our cash-and-carry format in the South. We then

will cover all the major cities in phases, he said.

We have three cash-and-carry stores and 100 retail stores. We will be opening two more cash-and-

carry and 40 retail stores in the next few months, he said.

Mr Mittal, who is also President of FICCI, was here on Tuesday in connection with a chamber's meeting.

Addressing reporters on the sidelines, he felt that FDI in domestic multi-brand retail sector should be

opened up. This would, in turn, boost domestic manufacturing and agriculture sectors.

Multi-brand retailing should be opened up in India. For the single brand, FDI should be increased from

51 to 100 per cent. For multi-brand, we should allow 49 per cent FDI. We are very hopeful that the

Government would make the required changes after the discussion paper and initial comments, he

said.

Retail is a very capital intensive and long term business keeping FDI out serves no purpose. You need

money and technology to survive in this business. You need infrastructure facilities like cold-chains to

ensure that food and vegetables are not wasted. We waste at least 40 per cent of vegetables and fruits

we produce every year, he pointed out.

Mr Mittal had reiterated that allowing FDI in retailing would not hurt small kirana (mom-and-pop)

stores.

Mr Mittal, whose company formed joint venture with Wal-Mart (NYSE:WMT) for its retail initiative, had

asked the Government to allow Wal-Mart to set up its base in India. Allowing it would boost the

domestic manufacturing industry, he felt.

News no 03


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India to draw 7-year strategic plan for tea

industry

India is working on a strategic plan for an ambitious growth of its tea industry over the nextseven years.

"The government has directed us to submit by this month-end a strategic plan for the next phaseof growth in the industry during the remaining 11th plan (2007-12) and the 12th plan (20012-17)," Tea Board Deputy Chairperson Roshini Sen told IANS here.

As the plan will form the basis of the 12th five-year plan from April 1, 2012, the board ispreparing an approach paper for the Planning Commission, with schemes, policy interventions,

financial requirements and investments the industry needs.

"The strategy will focus on production enhancement through re-plantation, rejuvenation, pruningand infilling, higher productivity in small tea gardens, capacity expansion of green leaf output byaugmenting factories through modernisation and new plants," said Sen.

Though India is the worlds second largest producer of tea (979 million kg in 2009) after China(1,310 million kg), it ranks 11th in per capita consumption at a modest 700gm per annum.

"With inputs from tea associations and other stakeholders, we are drawing an ambitious vision,with outcome goals and targets for each year," Sen said on the margins of the 117th annual

conference of the United Planters Association of Southern India (Upasi), which concludedTuesday.

With 75-80 percent of the produce consumed in the domestic market, India faces stiffcompetition from smaller countries like Sri Lanka, Vietnam and Kenya for a fair share of theglobal pie in export markets.

"The industry will have to go for product diversification and dual manufacturing facilities forOrthodox and CTC (crush, tear and curl) tea, explore value addition and production of instanttea, decaffeinated tea and specialty tea," said Sen.

Noting that higher investment in research and development (R&D) and technology transfer wereimperative for long-term sustainability and growth, she said to reduce costs across the valuechain, planters, producers and intermediaries would have to go for alternative and cost-effectiveprocesses, especially in packaging and branding.

"To boost exports in the existing and new markets and regain our share in erstwhile markets suchas Russia and Egypt, we are working on branding and promoting Indian tea, especially value-added tea in overseas markets," Sen noted.


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In line with the global trends during the recession-hit 2009, the export performance of Indian teaswas a mixed bag. Though quantity declined by 14 million kg to 192 million kg from 203 millionkg in 2008, the value was higher by Rs.224 crore due to better realisation per unit by Rs.19 perkg. Total value of exports was Rs.2,617 crore as against Rs.2,393 crore in 2008.

With the global economy turning around and international markets becoming active, the exporttrend in the first seven months of 2010 has been encouraging, as the quantum increased by 14million kg though value realisation declined by Rs.6.30 per kg to Rs.130/kg from Rs.136.60/kgin 2009.

"Apart from consolidating consumption in the domestic market, which has been facingcompetition from soft drinks and retail coffee chains, the industry has to gear up to face toughercompetition from other countries, which are waiting to enter the lucrative Indian market underFree Trade Agreements (FTAs)," Sen observed.

Besides encouraging organic cultivation and increasing production of green tea, the board is

working on special promotional programmes in key countries under the Brand India TeaPromotion to boost exports.

Referring to the mismatch between demand and supply in the domestic market, Sen said inaddition to replantation and rejuvenation of age-old plants, the only way the gap could bebridged was by going for vertical growth - increasing productivity, which declined to 1,700kgper hectare from 1,739kg/ha during the last five years.

News no 04

Mercedes Benz India to retail exclusive apparel and accessories

By CarDekho Team 14 Sep, 2010 at 15:14:23

Mercedes-Benz India has recently signed a quite different kind of agreement. The company hasentered into an agreement with fashion designer Manish Arora to retail his exclusively designedapparel and accessories through various Mercedes Benz India outlets all across the country.

Debashis Mitra, director sales and marketing, Mercedes-Benz India commented that thecompanys connect with luxury and lifestyle has been enhanced through its association with acedesigner Manish Arora. Initially this month, the company had introduced a 3D simulator ride


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console, SLS AMG Play Station, for providing a real life experience of driving its new sports carSLS AMG.

See More Mercedes-Benz SLS AMG Pictures Read More on Mercedes-BenzSLS AMG

The 3D simulator ride will give customers a real life experience of driving this super sports car.

Now car enthusiasts will get this exclusive opportunity to experience this automobilemasterpiece in all Mercedes-Benz markets across India, stated Mercedes Benz India. With aprice tag of Rs.2 crore, the company had rolled on the premium sports car in July which saw 10units being booked.

News no 05

Mandhana plans entry into retail marketSeptember 13, 2010 (India)

Mandhana Industries, a textile manufacturer, which made an entry into the

capital market at the beginning of the current year, intends to penetrate the

burgeoning Indian retail market early next year, through introduction of a

collection of men's casual wear brands.


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Initially the company will start selling commodities through its flagship stores and later on through

franchise outlets, informed, Mr. Manish Mandhana, Managing Director Mandhana Industries.

The companys plan for next year, include setting up 10 flagship and 50 franchise stores. It aims to set up

700 franchise format stores in the next few years and will invest around Rs 1.5 billion for retail market,

brand promotion and business expansion alone in first phase, added the MD.

Moreover, it will improve its production volume from 50 million pieces to 90 million pieces and plans to

add new capacity of 1.8 million meter in fabrics per month to the current 5.2 million meters of fabric.

The company garnered Rs 6.25 billion revenue last year and fetched a profit of Rs 480 million.

News no 06

Next warns on clothing costs after cotton

spike

By John ODoherty

Published: September 15 2010 09:27 | Last updated: September 15 2010 09:27

Shoppers are set to suffer from rising clothing costs next year, Next warned on Wednesday, as it

pointed to increased pricing pressure from a combination of manufacturing constraints overseas,wage inflation and higher fabric costs.

The retailer, which reported a jump in interim pre-tax profit thanks to margin improvements,predicted that price rises would come in for spring/summer collections that start to hit the storesin early 2011.

News no 07

UKretailer SuperGroup's Q1 sales boost by

60%


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SuperGroup, the British retailer behind the Superdry

fashion brand reported 60% increase in the first-quarter

sales.

Prajakta Ambre | Tue Sep 14, 2010TAGS: Julian Dunkerton, superdry brand clothing, supergroup fashion retailer, supergroup sales,supergroup stocks, supergroup uk

Supergroup's Superdry fashion brand

SuperGroup, the British company behind the Superdry fashion brand worn by celebrities such asDavid Beckham, reported soaring sales, underscoring its status as one of the hottest fashionlabels around.

The retailer and wholesaler, whose shares have more than doubled since a March flotation,making it the UK's most successful IPO so far this year, said on Tuesday its total sales jumped59.8 % to 32.8 million pounds ($50.55 million) in the three months to Aug.1, its fiscal first-quarter.

Founder and Chief Executive Julian Dunkerton, who along with SuperGroup's othermanagement shared 105 million pounds of the 120 million pounds IPO proceeds, said he is notexpecting growth in sales of its trademark T-shirts, hoodies, check shirts and jogging bottoms toslow, despite tough macro headwinds.

"I see no reason to believe that we will not continue growing in the nature that we have been

growing," he told Reuters. "Young people have to look good and they will continue to do so Ibelieve," he said.

SuperGroup, whose clothes are a favourite of film stars Leonardo DiCaprio and Zac Efron,trades from 49 stand-alone Superdry and Cult stores in Britain and 64 concessions and has awholesale business in 34 countries, including the U.S., which is slated to rise to 50 countries overthe next couple of years.


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The company has 20 stores a year opening programme and sees scope for 150 Superdry and Cultstores in UK/Ireland.Although results of UK retailers have generally started to improvefollowing the recession, many experts think the sector faces a harsh winter as the governmentcuts spending and raises taxes to rein in a record public deficit.

Dunkerton was, however, relaxed about the austerity measures impacting his business.

"The (country's economic) problems two years ago were in my opinion far worse than these(current) problems, I don't particularly feel vulnerable," he said. He is also unconcerned aboutrising cotton costs hitting gross margins, arguing the impact will be offset by volume growth.

Separately on Tuesday a survey from the nationwide building society said British consumermorale rose in August after three months of decline, while Debenhams (DEB.L), Britain's No. 2department store group, said year profit would be slightly ahead of market expectations.

SuperGroup shares, which listed at 500 pence in March, were down 3.8 % at 1,110 pence,

valuing the business at 830 million pounds, having risen 7 % on Monday.Freddie George, analyst at house broker Seymour Pierce, described the results as "outstanding",given tough comparatives and the distraction to shoppers of the soccer World Cup in June.

"Our price target is raised to 13 pounds to take account of the excellent opportunities to grow thebusiness in the UK through store openings and through on line as well as internationaldevelopment," he said.

First-quarter retail sales at the firm increased 62.7 % to 22.3 million pounds, driven by new storeopenings, while wholesale sales were up 53.9 % to 10.5 million pounds, boosted by strongoverseas growth.

"Group trading is where it should be at this stage and is on track to deliver another successfulyear," said Dunkerton.

News no 08

Olay Signs Carrie Underwood

P&G Olay beauty brand signs Carrie Underwood, the music

star from US for its next ad campaign.

Prajakta Ambre | Thu Sep 9, 2010TAGS: American singer Carrie Underwood, Olay products, Olay Signs Carrie Underwood,Olay's new ad campaign, P&G Olay, The Procter & Gamble Group


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Procter & Gamble is to expand its Olay product range

Carrie Underwood, an American singer will represent Olay's new campaign that includes a line

of skin care products. The campaign will breach in November this year and will be named asChallenge What's Possible targeting younger women and persuading them to try the newproduct range introduced by Olay, a brand owned by P&G (The Procter & Gamble Group).

"I am so excited to be associated with a beauty brand that has been trusted by women for morethan 50 years," said Carrie Underwood. Inspired by her mother, who used Olay products to takecare of her skin, Underwood said, "I love that Olay has managed to change with the times, yetstay in touch with women of all ages who want affordable skin care products that do what theypromise."

According to the announcement made by P&G at the Rockefeller Centers press conferences,

Olay has signed Carrie Underwood for a two year deal and the singer will appear in thecampaign endorsing two to three new products designed to be launched in the course of nextyear. The brand will also endorse the fall dates of Play On Tour, Underwoods next countrymusic album.

Procter & Gamble is all set to expand its Olay product range and has future plans to serve theneeds of men. P&G also aims to maximize its global reach from 69 to 100 markets in two years.


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Shares of P&G dipped on Wednesday by 23 cents in the first half of the trading session.

News no 09

Online shopping for luxury goods rises in

Japan

Online retail business soars in Japan as prices in traditional

shopping districts remain stubbornly high.

BY: n.namazi | Thu Sep 9, 2010TAGS: Jimmy Choo, McKinsey & Company, online luxury shopping, retail business, retailbusiness in Japan

Japanese shoppers

Japan is renowned as the mecca for luxury goods. But now, Japanese consumers are now feelingthe pinch thanks to new tastes and a super strong yen. Due to this, sales in traditional flagship &department stores are declining. Online shopping for luxury goods has, however, increased.Along with this, shopping at U.S.-style outlet malls in Japan is also soaring.


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According to a recent survey by McKinsey & Company, premium outlets in Japan today accountfor 23 percent to 29 percent of purchase frequency in luxury fashion apparel and leathergoods/accessories. Steep cuts in highway tolls have helped further. Mostly, Japanese consumersare tired of paying high prices in traditional shopping districts when the same products can bepurchased online at discounted rates.

With the yen now hovering at 83.9 against the dollar, Japanese consumers are increasinglydiscovering that it does not appeal to them to pay the Japan premium for goods that can befound inexpensively online and overseas.

Some examples: a pair of fierce Jimmy Choo Feline elaphe snakeskin trim sandals cost 131,250yen in Tokyo, or $1,572 at the current exchange rate. The same pair in the U.S. costs $1,095.Pradas leather bow pumps are 73,500 yen in Japan, or $880, compared with $650 in the U.S.Abercrombie & Fitchs mens McLenathan Bay sweater sells for 25,000 yen, or $296.42 at thecurrent exchange rate. In the U.S., the same sweater costs $170.

The Japanese shopper is tired of being ripped off and now feels that buying online or shopping inthe U.S is a better proposition for them.

News no 10

McDonalds' sales rise by 4.6% in August

McDonalds, the worlds largest fast-food chain marked

remarkable profits in August with sales rising by 4.6%.

Prajakta Ambre | Fri Sep 10, 2010TAGS: McDonalds, Mcdonalds august sales, Mcdonalds Europe, Mcdonalds restaurants,Mcdonalds stocks, Mcdonalds' sales rise


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McDonalds sales rise by 4.6% in August

McDonalds has come a long way since the time the biggest fast-food maker of the worldintroduced products like frappes and fruit smoothies to the US customers. MacDonalds salesfigure hiked by 4.6% on the back of the revenues earned on the launch of its new foods.However, analysts had expected even better results for the company.

Sales figures for the McDonalds restaurants in the European region went up by 2.2% on strongresults in Britain and Russia. Surprisingly, stocks of the company saw a 2.3% decline onThursday taking cues from the weakening Europeans shares. There are assumptions thatreduction of value-added tax on restaurant meals in 2009 in the France province played a keyrole in pulling down McDonalds stocks in the Europe region as sales growth in every othercountry is steady.

McDonalds reported 4.9% growth (the biggest increase in the gains since April 2009) in the salesfigures for its restaurants set up across the world.

McDonalds sales in the Asia-Pacific, Middle East and African regions grew by 7.8%.Conversely, sales in the same regions had seen a 0.5% drop in the previous year. Australian,Japan and China region sales have given a sparkling performance on the back of the McDonalds'food items in the respective countries winning strong local response on the parameters of tasteand flavor.

However, the company has not yet declared any revenue figure and has tentative plans to releaseits 3Q results in the next month.


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News no 11

Amway inaugurates Health & Beauty Centre

in India

Amways first Health & Beauty Brand Experience Centre

launched in Gurgaon, 10th in India.

Prajakta Ambre | Fri Sep 10, 2010TAGS: Amway global, Amway Health & Beauty Brand Experience Centre, Amway India,Amway news, Amway products

Amway

Amway India Enterprises Pvt. Ltd inaugurated its 1st Health & Beauty Brand Experience Centreof Gurgaon and 10th in India. Situated at MGF Mega City Mall, MG Road, Gurgaon, the centreoffers a unique touch & feel experience of Amways Health & Beauty products.


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The Brand Experience Centre enhances brand visibility and awareness of Amways products byoffering consultancy on health and personality related aspects such as nutrition, fitness, wellnessand beauty.

This Brand Experience Centre is the part of plush new upgraded Amway Touch Point, spread

over 17000 Sq Ft which has a capacity to train over 100 people at a time. The brand centre isequipped to provide skin assessment and consultancy from Skincare expert. A nutritionist willoffer consultancy on Nutrition and fitness regime.Addressing media persons post the inauguration, Mr. William S. Pinckney, MD & CEO, AmwayIndia, said, Amway will focus on four key strategic pillars to drive growth businessexcellence, the consumer experience, the distributor experience and products & brands. ThisBrand Experience Centre will communicate Amway products feel, features and values throughlive demonstrations and unlimited training to business owners and consumers.

The centre also displays all the products in Personal care, Homecare, Cosmetics & Health &wellness categories. The Skincare experts at the centre will examine the customers skin type and

suggest products to help them come over their problems regarding their skin.

These tests are conducted with tried and tested high end one of kind equipments. Theseequipments help to locate the affected area on the skin for example, pigmentations, sunburns,blackheads etc. The skin care experts not only identify the effected skin but also suggest thesuitable products and diet to overcome the problem.

New no 12

Home Retail Group warns on slow summer

profits

Home Retail Group, the Argo owner cautions slow profits on

declining summer sales.

Prajakta Ambre | Sat Sep 11, 2010

TAGS: Argo, Home and DIY, Home Retail, Home Retail Group, Home retail summer sales,home stocks, Homebase


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Home Retail Group

Home Retail Group, the catalogue retailer pointed out that the demand for both furniture andvideo games have fallen by nearly 5% in the first half of FY10. Customers have been avertingbig purchases since the summer season and decline in the customer traffic for summers may push

the profits 20-25% down than the previous year.

The Home Retail Group also owns DIY retailer Homebase, which saw sales ending flat in thesummer time. According to a statement made by Terry Duddy- CEO of the Home Retail Group,the sale figures at Argos in the second quarter were better than the first quarter as the marketswere more challenging during that time. Were getting a great response from customers, MrDuddy said, but declined to compare performance at refreshed and old stores.

However, Nick Bubb at Adren Partners was of the opinion that the customers are still not veryconfident about spending huge amounts of money for furniture and other household commoditiesas the global economy is still recovery and the fear of double-dip recession has not yet been

eroded completely.

Hence, house retailers have decided to wait and watch till the year end as there are hopesamongst the retailers that the current trend may change once the year commences further.

At present, the Home Retail Group plans to achieve a neutral position at the end of the year as faras liquidity is concerned with intentions to retain the dividend of 14.7p.


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News no 13

Pimco: Enters UKretail market

Pimco has introduced a Ucits III fund range for British

retail investors and platform users.

BY: n.namazi | Mon Sep 13, 2010TAGS: Global Investor Series, Pimco, Pimco Select, UK retail, UK retail market

Pimco

Company officials have said that the launch of Pimco Select is a noteworthy strategic move intothe UK retail market. Pimco has entered into an initial agreement with Aegon as the first phase ina series of tie-ups with distribution partners.

The range comprises of Pimco Select Global Bond fund (to be taken care by Scott Mather) andthe Pimco Select UK Corporate Bond fund (managed by Luke Spajic).

Both funds will mirror those available on Pimcos Dublin-based Global Investor Series (GIS)platform - a complex comprising 38 sub-funds with 32.6 billion in assets under management.

Pimco Select Global Bond will proffer investors exposure and know-how to global fixedincome.Global fixed income is a segment which can be tricky for individual investors toaccess straightforwardly, Pimco says.

The Pimco Select UK Corporate Bond is a diversified portfolio. The goal is to produce a better

yield and total return on corporate debt and credit, as compared with government securities.

Managing Director and Head of British Business at Pimco, Joe McDevitt, says that the launch ofPimco Select is a crucial development in expanding the firms investment management expertiseand strategy.

The company aspires to increase more funds to the Select range in the near future. Same-daypricing will be allotted to all funds.


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Pimco said it will focus on its presence in Britains institutional market, and embrace a strategyto forge partnerships with prominent insurance and pension fund companies and platforms.

News no 14

HPCL: Set to Enter the Retail Market

Hindustan Petroleum Corporation is prepared and ready to

set a mark in the retail sector with aggressive retail strategy.

BY: s.dutta | Mon Sep 13, 2010

TAGS: Bhatinda refinery, Bokaro, CNG option, GAIL India, Hindustan Petroleum Corporation,HPCL, Maharashtra Refinery, Mundra-Delhi pipeline, Oil India, retail outlets, Total of Franceand Saudi Aramco, Vizag

HPCL logo


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Hindustan Petroleum Corporation is all prepared and ready to set a mark in the retail sector withaggressive retail strategy that will help it rise high in the coming years.

By 2020, we would like to see our market share reach 30 per cent from the present level of 20per cent. If we do not grow at the pace needed, we could be in all kinds of trouble, Mr S. Roy

Choudhury, Chairman & Managing Director, said.

In Bihar, at present, HPCL's market share is barely 10 per cent because it has no infrastructurefacilities of its own. However, changes will creep in soon and for the better. We are now puttingup a Rs 100-crore ultramodern terminal and believe that we can grow by 25 per cent almostovernight as a result. Bokaro is another case in point where we have no facilities but are nowremedying that by setting up a huge terminal, he said.

Similarly, the oil major's retail presence is almost nil in 200 districts despite the fact that it has inits belt 9,000-odd outlets. Infrastructure will be a key growth driver and we will earmark Rs3,000 crore annually for putting up retail outlets, pipelines, terminals and depots, Mr Roy

Choudhury said.

An important ingredient of this growth plan will be the nine-million-tonne Bhatinda refineryscheduled for commissioning in 2011-12, which will give HPCL a boost in the north and cater toimportant markets in the region. The ball was set rolling by the Mundra-Delhi pipeline, whichhas already achieved five million tonnes in the first year of operations when this was a goal setfor 2016-17.

We can take products to different parts of the country with the Bhatinda refinery, which meansreallocation of resources. This explains why we are putting up a host of support facilities in theseparts of the country, he said.

On the refining front, the other top priority is the new 15-million-tonne Maharashtra Refinery onthat could be commissioned between 2016 and 2020. This will eventually replace the six-million-tonne Mumbai refinery.

HPCL is also keen on revisiting the exploration and production space where it has maintained alow-key presence thus far. Another area, in which I believe we have lost a little pace, is non-participation in the gas business, Mr Roy Choudhury said.

We have formed a gas division and we could even look at infrastructure and then get a partnerfor sourcing gas. We are going to be a key player in the gas segment, especially with 9,000 retail

outlets which need a CNG option, he added. Gas, infrastructure development in gas andsourcing would be top priorities for HPCL. We could even look at gas exploration in the nearfuture though it is too early at this point, Mr Roy Choudhury said.

The oil major along with GAIL (India), Oil India, Total of France and Saudi Aramco is planningto revive the $8-billion refinery-cum-petrochemicals project at Vizag. The next six months willsee us streamline things and put everything on track. This is a company in a hurry which just


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cannot afford to slow down, he said.

News no 15

U.K. food prices: Increased rapidly, BRC

says

British Retail Consortium reported that U.K. food prices

have rapidly increased in August.

BY: n.namazi | Wed Sep 8, 2010

TAGS: British Retail Consortium, food prices, food prices increase in UK, food retail news

Food retail outlet

British Retail Consortium (BRC) reported that U.K. food prices have rapidly increased in Augustthis year mainly because manufacturers passed on higher commodity rates.

The BRC said in an e-mailed statement today in London that food prices rose an annual 3.8percent, up from 2.5 percent the previous month and the most since July 2009. It further cited asurvey by Nielsen. Shop-price inflation also accelerated to 1.7 percent from 1.5 percent.

Food prices are increasing as producers pass along higher costs of raw materials, the BRC said.Wheat prices have increased as high as 53 percent in the last three months. Price rises may be


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restricted as consumers tighten budgets before the governments well-intended spending cuts andshops reduce prices to entice customers.

As shoppers return from their summer holidays, many will review household budgets again. Wecan expect to see retailers putting together some strong autumn promotions to tempt shoppers.

Mike Watkins, Senior Manager of retailer services at Nielsen, said in the statement.

British Retail Consortiums measure of shop-price inflation was held down by a smaller increasein the price of non-food items. In August, yearly inflation in those products eased to 0.5 percentfrom 1 percent in July, the statement said.

News no 16

U.K. Retail Sales: Increase in August

U.Kretail sales have increased in August for school clothing

and footwear, the British Retail Consortium said.

BY: n.namazi | Tue Sep 7, 2010TAGS: British Retail Consortium, rise in retail sales, U.K. Retail Sales, UK retail


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U.K. Retail Sales: Increase in August

There has been an increase in shoppers purchasing school clothing and footwear for the newacademic year. Owing largely to this, retail sales in the U.K. significantly increased in August.

The London-based BRC said in an e-mailed statement that sales at stores rose 1 percent from a

year earlier, compared with a 0.5 percent gain in July. Sales of non-food items via the Internet,mail-order and phone companies climbed 18 percent.

According to a report published last week, consumer confidence got better for the first time insix months in August after the economy expanded in the second quarter by the most in nineyears. This revival is threatened by the budget squeeze looming as Chancellor of the Exchequer,George Osborne, cuts spending by the most since World War II to handle the record shortfall.

Stephen Robertson, director general of the BRC said in a statement, The good news is sales arestill growing. Anxiety about job cuts and tax rises is putting people off making major spendingcommitments.

In August this year, GfK NOP Ltd.s index of consumer sentiment rose 4 points to minus 18though its gauge measuring the climate for major purchases dropped 4 points to minus 20.

The BRC report is assembled together with accountancy firm KPMG LLP. The report measuresalterations in the actual value of retail sales and does not fiddle with price changes.


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News no 17

Morrisons: To launch online food service

UKretailer Morrisons plans to sell groceries online in order

to capture the digital space for better future.

Prajakta Ambre | Mon Sep 6, 2010TAGS: Dalton Phillips, Morrison launches online food service, Morrisons, Morrisons UK, onlinefood launch, online food service, online food stores, the UK markets, UK's retail sector

Morrisons plans to set up online grocery stores

Morrisons, one of UKs top food producers has a new business strategy that will aid Morrisonsto move into a more advanced space in the coming future. Morrisons plans to expand its servicesand set up a chain of online grocery stores for customers convenience. Dalton Phillips,Morrisons new CEO is striving to capture the opportunities available in the online retail arena toeventually promote Morrisons services and brand name to the next level.

Analysts have greater expectations from Dalton Phillips as they are clear about the kind ofapproach Phillips should take to expand Morrisons operations. At present, Phillips is making

some managerial changes that can help Morrisons to lay focus on the development of smallstores, introduction of the non-food range commodities and improve its home delivery services.

Morrisons shares have been trading in high volumes and have a better scope to move on top inthe coming future. However, investors have opted to remain cautious before investing theirequities in Morrisons shares.


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Morrisons core business is to provide top quality, fresh foods across the UK markets. Thecompany owns 13 manufacturing sites and runs more than 400 stores in the UK with 13distribution centers. Morrisons recent product launch Simply Fresh Foods offers freshly-cut,stir-fried, cooked-in-advanced kind of veggies that can be utilized to prepare direct meals.

Buying food online is certainly a new concept and has worked for many customers and regulargrocery shoppers as it offers a prime facility of timely delivery. Moreover, the customers canalso browse the online store and pick up what they need.

From retailers point of view, online food launch is a fresh trend and many food retailers areadopting the same to remain more competitive in the online food market. The online food marketservice helps customers to shop for their required groceries online and fix deliveries suitable fortheir schedules.

Morrisons' industry rival, Amazon has already launched similar kind of services for their well-expanded customer base.

News no 18

Tesco: Bids for Carrefours south-east Asian

assets

Tesco, the worlds third big supermarket group joins the

first round of auction for a store sale put up by Carrefour,France.

BY: p.ambre | Sat Sep 4, 2010TAGS: Carrefour, Carrefourstore sale, Carrefours south-east Asian assets, retail market news,retail news, Tesco, Tesco auction, Tesco bids for Carrefour, Walmart

Tesco: Bids for Carrefours south-east Asian assets

UKs retail giant Tesco is among the pack of 10 bidders for a sale on south-east Asian assets put


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up by France-based supermarket enterprise Carrefour. Carrefours assets are set up in the regionsof China, Japan, Malaysia, Thailand, and Singapore. The auction comprises of 61 Carrefourstores spread across Thailand, Malaysia and Singapore.

Besides being a retail market leader of the Thailand and Malaysia markets, Tesco has a major

plan of adding up to 460,000 square meters of new space for the upcoming stores. The new movemade by Tesco indicates that the supermarket giant is in the expansion mode. Stocks of Tescomade considerable improvement after the bidding news was out. However, no comments havebeen made on Tescos front up till now on the post-auction plans.

To the analysts surprise, Wal-Mart, the biggest retailer of the world has remained out of theauction by choosing not to intervene in the first round of the bidding war. While, Tescos otherrivals like Singapore-based Dairy Farm, Casino and Japan-based Aeon have pitched for auction.

The auction deal may achieve the target price of between $800m and $1bn for Carrefour.

The reason behind Carrefours 61 store sale is to withdraw investments made in the other regionsand focus on the core business activities as the group is planning to curb the growing expensesrequired to sustain the out-of-region operations.

The company has already moved back from the southern Italy province and extraction from thePortugal region has been the next step. At present, Carrefour aims to focus on regions where thecompany is already leading the markets and has greater prospects to count on.

News no 19

US retail sales boost as tax-free holidays

return

US retail sales in August have made remarkable growth

beating analysts estimates as tax-free discounts entice

customers.Prajakta Ambre | Sat Sep 4, 2010TAGS: growing retail sales in US, tax-free discounts, tax-free holidays, US fall season sales, USretail sales, US retail sector news, US retailers


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US retail sales boost as tax-free holidays return

The retail sector in the US got a major boost in the month of August as consumers returned to themalls with new shopping plans on tax-free holiday discounts for around seventeen days inAugust made available to them. Americans have started shopping again in order to prepare for

the upcoming holidays.

On the back of the sagging retail sales in the months of May and June, the US retailers wentthrough a tough time during the summer term. The summer season retail sale was affected byuneven customer traffic and discouraging economic condition. However, discounted holidayseason has lured shoppers to visit their local malls giving retailers a big reason to smile.

Most retail brands and shore chains booked profits beating analysts estimations on the retailsales. Limited Brands Inc. sales rose by 10% in the month of August while sales at Kohls Corp.,mounted up by 4.5%. According to another projection made by the analysts, sales at the Same-store, the departmental chain were believed to see a raise of 2.8% while the actual sales grew by

3.5% beating analysts anticipation.

Sales for the fall season are showing upbeat figures than the summer sales giving retailers anopportunity to gear up their endorsement plans. On the back of these gains, major retailers havestarted kicking off their promotion campaigns to fetch more and more customer traffic eyeing theholiday season filled with discounted days and unlimited fun.


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Better-than-anticipated growth of 5.2% in US home sales in the month of July, drop in thejobless claims figures and the retail sectors growth were the main reason behind the positiveoutcome induced by the US stocks on Friday. Optimistic figures on housing market, employmentsector and increasing factory orders gave a strong push to the US economy lifting up the investorsentiments.

News no 19

Retailers say yes to FDI

Mixed feedback received on proposal to allow FDI in multi-

brand retail.

BY: n.namazi | Fri Sep 3, 2010TAGS: American Chambers of Commerce in India, Bharti-Walmart, FDI, retailers

Retailers say yes to FDI

American Chambers of Commerce in India has fully supported the FDI. It stated that this movewould benefit domestic and foreign players both. However, it recognized the significance of aphased change of allowing the first step of 49% FDI.

US-India Business Council believes that stipulating a 50% investment in backend infrastructurewould not be sensible. It said, Investment should, and will, happen because of its commercialnecessity on an ongoing basis. Mandating a fixed investment amount may encourage under-investment during initial infrastructure development when a relatively high level of resources arerequired, and also may encourage a mis-allocation of resources as maintenance of infrastructureis required."


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The Council believes that such a move could dis-incentivise infrastructure investment bysuppliers, thus limiting the total investment.

The Kisan Jagriti Manch, on the other hand, states that it is imperative to study the agriculturalsector involving farmers group. This is a must for the permission of FDI in multi brand sector

(particularly in the food market).

"As the country is comfortable in foreign exchange reserve which was $283.5 billion in Dec2009 and indigenous technology is available for the creation of storage facilities and the fact thatthere are no conclusive reports of the impact of FDI on inflation control as well as increase infarmer's profit., there is no urgency for FDI," stated the Manch.

The idea that foreign investment for retail stores be allowed only in cities with population ofmore than 10 lakhs (2001 census) was also suggested. On this, retail major Bharti-Walmartstated that retail should be permitted in the roughly 200 cities with a population greater than 2lakh (200,000). This would lead to the protection of the kiranas in smaller cities and rural India.

It also suggested a few changes such as abandoning Shopping Mall Regulation and using FDI toenhance the Public Distribution system.

It said, "In case a mandate is absolutely necessary, a minimum threshold limit of a $100 mn overfive years be fixed for the food category. There should not be any stipulated limit for the non-food category."

It added, "More than 50% sourcing should be local in order to develop India's industry. Foreignand domestic retailers engaged in multi-brand retailing should be treated equally in any policydesigned to enhance sourcing from the SME sector."

Confederation of Indian Industry also gave an assenting nod for FDI in multi- brand retail. Itsaid, In order to balance the interests of various stakeholders the initial cap on investment couldbe pegged at (i) 49% under the automatic route and (ii) 74% under the approval route. In order toensure that only serious investors are encouraged, we may like to put some restricting conditionsaround exit (say minimum lock in period as 3 years). These conditions should apply irrespectiveof whether the foreign investment is being received in the food or the non-food category."

News no 20

Zara: Launches online retail storeSpanish clothing retailer Zara has opened a new online store

in France, Spain, Italy, Portugal & the UK.

BY: n.namazi | Fri Sep 3, 2010TAGS: department stores, luxury fashion brand, online retail store, Zara


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Zara

Zara already sells a home range online but the website will now also offer fashion lines that waspreviously only available in their stores.

Reports say that due to fears of a decline in High Street spending, the company took the decision

to move into cyberspace. The confidence among consumers is fading and many fear a furthereconomic slowdown. However, online sales have enhanced in time.

Internet trading for the companys rival Next saw a rise by 7.8% in its home shopping business.Furthermore, for Asos, the online market leader, sales rose 54% during the January-to-Marchquarter of this year.

It has been observed that online retail sales have enhanced in time as a number of people haveaccess to high-speed internet connections. Industry experts say that shoppers pressed for timenow make the most of shopping from home or work.

Internet shopping is expected to grow to 94bn ($144 bn) in Western Europe by 2014, from56bn in 2009, according to consultants Forrester.

But online sales encompass only a small proportion of total sales. According to the Office forNational Statistics, only 8% of total sales in July were made online in UK.


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According to Jeremy Baker, professor of marketing at the ESCP business school, "Shops thatdon't have an online presence have noticed rival stores enjoying a dramatic increase in onlinesales, while their sales in shops have been pretty flat,"

Zara's online shop will soon be followed by H&M's online shop, which will go live on 16

September. "There is clearly demand for Zara product online," said Simon Chinn, retailconsultant at Verdict Research. "It will comfortably complement its extensive store estate,adding an extra level of service for its customers."

Online retail sales will double in next three years. Inditex, Zara's parent company, has surpassedGap as the world's biggest clothing retailer by sales. Inditex chief executive, Pablo Isla, said:"Customers should expect the launching of online selling for the group's other brands in comingyears."

Zara is hoping to see a 10% growth in revenue with the opening of its online store.

News no 21

Marks & Spencer: Plans to open a store in

Egypt

UKs leading retailer M & S makes the next move focusingEgypt; plans to open its first store in the land of Pyramids.

Prajakta Ambre | Tue Aug 31, 2010TAGS: Cairo, M&S, Marks & Spencer, Marks & Spencer products, Marks & Spencer store inEgypt, UK, UKs leading retail chains


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Marks & Spencer: Plans to open a store in Egypt

The Marks & Spencer Group (M&S), the leading retail chain of UK that offers products likeclothing, foods and home ware declared its plan to open a first-ever store in Egypts capitalCairo. Marks & Spencer will join hands with the Al Futtiam Group to open up a 2,600 meter

shop at Cairos Dandy Mega Hall shopping center. The store will offer fashion, beauty and homeproducts.

Another store will open in Cairo Festival city shopping mall by 2012, which will be a two-floor,4,400 square meter mega store with variety of custom Marks & Spencer products.

The company has set up operations in about 41 countries including India and China across theworld and is in the expansion mode. With UK being its key market, Marks & Spencer is listed onthe London Stock Exchange and its stocks are performing well. The London headquarters ofMarks & Spencer holds 75,000 employees.

Marks & Spencer has a worldwide presence with 339 international stores while 693 stores in UKalone. After reporting international sales of GBP949.4 million in the FY10, the retailer has majorplans to recreate and sustain its image of the largest global retailer by establishing more andmore stores in different regions of the world.


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NEWS NO 22

Pantaloon: Tries hard to sustain companys

growth

Sustaining a steady growth pace has been a challenge for

Pantaloon India.

BY: n.namazi | Tue Aug 31, 2010TAGS: Indian retail company, Indian retail news, Pantaloon Retail, Shoppers Stop

Pantaloon Retail

The June 2010 quarter results for Pantaloon Retails reflected a strong lift in the same store sales.The company achieved a higher margin in lifestyle retailing together with buoyant sales in thehome retailing sector. But a high valuation implies that investors do not have much to lookforward to.


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With retail stocks such as Pantaloon Retail, investors have been quite bullish. The companysretail stock touched a 52-week high of Rs 531.25 in mid-July this year. On Monday, though, thestock ended 1% lower at Rs 468.8.

Store sales growth is a key parameter in the retail industry. So far, the companys store sales

growth at 19.4% of its lifestyle segment for the year and 57% for home retailing during the Junequarter were the highest during the past three quarters. However, Pantaloons performance wasbetter when compared to its competitor, Shoppers Stop which had posted 14% growth earlier inlike-to-like sales from its stores that are more than 5 years old.

To help enhance its offtake for higher margin electronic products like flat panel TVs andcameras, Pantaloon had organized promotional events at its eZone outlets which considerablyimproved its June quarter sales growth.

This well-thought marketing strategy has helped Pantaloon Retails core retail business expand ata strong 50% to Rs 2,493.7 crore in the quarter. Its EBITDA (operating profit inclusive of other

income) during this period grew at 57.8%. The net profit for the quarter jumped 170.9% to Rs98.8 crore.

Bearing in mind the companys overall business which encompasses the latest transfer of valueretail business to its wholly-owned subsidiary, Pantaloons net sales were up 91.2% in thequarter under review, while EBITDA increased 55.1%.

The fundamental challenge for companies in the retail sector such as Pantaloon is to retain itssales growth tempo especially now when food inflation has been close to double digits resultingin a negative impact on consumer spending.

At Rs 468.8 per share, the Pantaloon Retail (India) stock trades at a P/E of more than 50 times ona consolidated basis - this amply points out the growth opportunities over the medium term.

NEWS NO 23

eBay: To launch an ad campaign during

Christmas

eBay plans to boost fashion sales by launching an advertising

campaign to mark its presence in the online retail market.

Prajakta Ambre | Wed Sep 1, 2010TAGS: ebay campaign in UK, ebay's advertising during Christmas, eBay. ebay's advertisingcampaign, online Fashion Outlet, online retail market


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eBay's online Fashion Outlet

The online retail market is becoming highly competitive as many e-commerce and e-auctionwebsites are struggling to grow in the same space. eBay will kick-off endorsing its FashionOutlet though advertising billboards put up at several popular locations across the UK. eBay isplanning to expand its operations by encouraging consumers to shop from their online FashionOutlet, especially during the Christmas season.

eBays advertising campaign in UK will be the biggest one in its 11-year history as eBay hastargeted big clothing and fashion brands from UK with huge potential to lure shoppers. eBayhopes to make gains by cashing on the customers seasonal shopping spree spirit and remaincompetitive amongst other players.

Experts have noticed that the online fashion markets have a tremendous scope for growth asshoppers are increasingly buying online to save time. Advertising and promotion of such onlinefashion destinations can help boost the sales of the respective companies as they fulfillcustomers demand by providing a wide range of high-quality material at reasonable prices.Customers can browse for as many options as they can and pick up products displayed by theirfavorite brands.

eBay launched its Fashion Outlet in the month of May this year and earned revenues around4million for the branded goods they sold through their website. Around 4.6 million shopperspurchased branded items and fashion products from eBays website within three months sincethe launch.


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NEWS NO 24

BurgerKing: Plans to go private with 3G

Capital

Burger King Holdings Inc., the worlds second-largest fast

food chain is in buyout talks with Brazilian Investors 3G

Capital.

Prajakta Ambre | Thu Sep 2, 2010TAGS: 3G Capital,brazillian investors, Burger King, Burger King buyout deal, hamburger chain

in US, Jorge Paulo Lehmann, McDonald, worlds second-largest fast food chain

Burger King's superlarge burger


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The second biggest hamburger and fast food chain of the world - Burger King Holdings Inc., isdiscussing a buyout deal with 3G Capital, the investment managing firm from Brazil. Shares ofBurger King soared by nearly 15% on NYSE after the news of Burger Kings move to go privatewas published by the New York Times.

If the buyout takes place, then the Burger King will get an opportunity to reform its relationswith the franchisees and deal with them in its own way. Burger King is yet to outperform its rivalMcDonalds corp. in the US as McDonalds shares have been climbing up since it acquired thetop position and became popular worldwide.

However, the buyout activity is undergoing negotiations and may not lead to transaction asBurger Kings discussion with 3G is still in progress.

Miami-based Burger King was owned by big players like TPG, Bain Capital and Goldman Sachsfor four years till 2006. After going public in 2006, the shares of Burger King have soared. The

market capitalization of the company is worth $2.24 billion with more than twelve thousandrestaurants put up across the world.

While 3G Capital, the potential bargain hunter of Burger King is a New York based firm that hasan extended setup in Brazil, which is backed by many Brazilian investors including billionaireslike Jorge Paulo Lehmann, owner of worlds biggest brewer and former investment banker. 3Galready owns about 1% stake of the third-largest fast food chain in the US - Wendy/ArbysGroup Inc.

Burger King is certainly struggling to stay at the top in market but MacDonalds monopoly thathave gone stronger during past few years is difficult to erase and has posed a direct challenge to

Burger King. Nonetheless, Burger King is performing better than Wendy/Arbys, a group whichis struggling to keep up in the current economic condition.

NEWS NO 25

Gap Inc. reports EPS growth

Gap Inc. reported increased earnings per share for the

second quarter

Laura Canter | Fri Aug 20, 2010TAGS: e-commerce, Gap Inc., Glenn Murphy, global, growth, initiatives, Old Navy, Sales


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Gap Inc. reports EPS growth

On Friday, Gap Inc. reported earnings per share for the second quarter, which ended July 31,increased 9 percent to 36 cents per share on a diluted basis, compared with 33 cents per share ona diluted basis last year. Net earnings grew 3 percent to $234 million compared with $228

million for the second quarter last year.

Our economic model helped us deliver both sales and earnings growth for the second quarter,while we navigated some challenges along the way, said Glenn Murphy, chairman and chiefexecutive officer of Gap Inc. Looking forward, were committed to our strategy of growingsales and market share in North America as we also invest in our long-term global and onlinegrowth initiatives.

In the second quarter, Gap Inc. expanded its e-commerce reach from one country to 55 throughinternational shipping, making Old Navy available for the first time to customers outside ofNorth America. In addition, the Company expects to launch dedicated e-commerce sites this

month in Canada and the United Kingdom. By the end of the year, the Company expects to havestores in China, Italy and Australia, which combined with its expanding online and franchiseoperations, will reach customers in a total of about 80 countries.

Second quarter net sales were $3.32 billion compared with $3.25 billion for the second quarterlast year. The Companys second-quarter comparable-store sales increased 1percent comparedwith a decrease of 8 percent for the second quarter last year. The Companys online sales for the


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second quarter of fiscal year 2010 increased 15 percent to $258 million compared with $224million for the second quarter last year.

News no 26

Apple iPad now available in 9 more countries

Apples newest novelty continues to go international making

itself available in 9 additional countries

Laura Canter | Mon Jul 19, 2010

TAGS: 3G, Apple, international, iPad, markets, tablet, Wi-fi

Apple iPad


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On Monday Apple announced that on Friday, July 23 the iPad will be available in nine moreinternational markets including Austria, Belgium, Hong Kong, Ireland, Luxembourg, Mexico,Netherlands, New Zealand and Singapore. Both the Wi-Fi and 3G models will be available inthese regions at launch, and pre-orders have not yet been announced for either model. Instead,

customers will have to line up on launch day to get their hands on Apple's new popularinnovation. Apple also did not announce any official pricing for the new iPad regions.

Apple said in its announcement on Monday that the Company also plans on releasing the iPad to"many more countries" throughout 2010. So expect to hear more announcements including localpricing and availability in the next few months. The iPad is already available in the U.S. andCanada, Australia, France, Germany, Italy, Japan, Spain, Switzerland and the U.K.

In May, Apple said it had sold two million iPads during the first 60 days of the tablet device'savailability in the U.S. and other countries around the world. The company has not announcediPad sales since then, but that is likely to change on Tuesday when Apple announces its third

quarter financial results for 2010.

Monday's announcement by Apple comes on the heels of a press conference on Friday regardingrecent iPhone 4 antenna fiasco that has spoiled the company's image over the past few weeks. OnFriday, Apple CEO Steve Jobs announced that any iPhone 4 customers experiencing signal losswould be provided a $30 bumper case free of charge in an effort to remedy the iPhone 4 antennaissue. As an alternative, new iPhone 4 owners may also return their phones to Apple for a fullrefund.

Both offers will expire on September 30, but they could be extended if Apple deems it necessary.Apple also reiterated on Friday that it plans on launching the iPhone 4 in 17 more countries by

the end of July.

News no 27

Wal-Mart to use electronic tags to track

clothing

Implementing electronic tags will help store control itsinventories better

Laura Canter | Fri Jul 23, 2010

TAGS: electronic, electronic tags, inventory, security, Technologies, Wal-Mart


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Wal-Mart

On Friday, Wal-Mart Stores Inc. announced its plans to initiate electronic tags to keep track ofindividual garments like jeans and underwear, in a move that would help the retail giant control

its inventories better, the Wall Street Journal said.

Beginning in August, Wal-Mart will place removable radio-frequency ID tags on individualgarments that can be read by a handheld scanner, the Journal said.The tags will help Wal-Mart workers to better pinpoint items, which can easily be shop-lifted,that are missing from the shelves.

The aim of rolling out the electronic tags is to ensure shelves are optimally stocked and inventoryis looked after a little more closely in an effort to beef up security.If successful, the electronic tags will be used for other products at Wal-Mart's more than 3,750stores located throughout the country.

"This ability to wave the wand and have a sense of all the products that are on the floor or in theback room in seconds is something that we feel can really transform our business," RaulVazquez, the executive in charge of Wal-Mart stores in the western United States, said in astatement.

Electronic tagging has been an emerging market, and awareness is growing internationally of theefficiencies and cost savings that can be achieved by adopting these new tag technologies


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News no 28

Toyota to launch stream of green-cars in 2012

Keeping up with the going green phenomenon, Toyota will

introduce fuel efficient vehicles in 2012

Laura Canter | Sat Jul 10, 2010

TAGS: battery electric, Detroit auto show, Green, Prius, Toyota

Toyota

Toyota has announced that it plans to introduce its new line of fuel efficient vehicles in 2012 inan effort to keep up with the going green phenomenon.

The company said that it plans to introduce three new-to-market green vehicles in 2012,according to a company source.


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A battery electric vehicle, a plug-in version of the Prius and a soon-to-be unveiled variant of thePrius will arrive in U.S. dealerships in the first half of 2012, said the source, who spoke on thecondition of anonymity because he was not authorized to speak publicly about the plans.

The second Prius vehicle will begin the creation of an ongoing family of vehicles that will carry

Prius badging but will not be a separate brand. The battery electric vehicle probably will besimilar to the electric version of the iQ, which Toyota unveiled at the 2009 Detroit auto show.

Toyota may sell the electric vehicle only in certain markets that provide sufficient infrastructureto support the vehicle. It plans to track those markets' sales and infrastructure progress on theirWeb site, www.toyota.com/esq.

Toyota also will launch a viral marketing campaign on that Web site as it approaches the launchdates of the green vehicles, the source said.

News no 29

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