Asian Retail News FeatureRegional Round UpWhat’s Happening Around the Region..RELIANCE RETAIL TO CONSOLIDATE OPSReliance Retail, India’s second-largest retailer, has announced launchedplans for a major restructuring of its businesses.The group has fi led a petition in the Bombay High Court, asking for approvalto bring the operations of eight formats under its Reliance Fresh banner.According to local reports, the move will see Reliance bring the Fresh,Autozone, Trends, Footprint, Digital, Leisure, Gems & Jewels, and ReplayGaming units under a centralised system.The move reportedly aims to increase synergies and effi ciencies amongstthe various businesses. The restructuring will make Reliance Fresh a singleretail entity under holding company Reliance Retail. It would also mark thethird major restructuring by the company, since setting up shop in 2006.JAPANAEON AND SEVEN & I HOLDINGS REPORT DIFFERING RESULTSJJapanese retail giant Aeon saw its operating profi t for the March-November period decline by 5.5% to 96.2bn yen (€815m), hurt by softconsumer demand and increased competition at its general merchandiseand grocery stores. Net profi t, however, grew by 2.9% to 37.6bn yen, whilerevenues were up 9.9% to 3.75trn yen (€3.2bn).Earlier, Aeon’s main rival Seven & I Holdings reported that its operatingprofi t for the September-November quarter rose by 4.8% to 69.2bnyen (€586m), the fi rst such rise in nine quarters. Results were helped bya cost-cutting plan and a change in products being offered. The grouprecorded growth at its 7-11 convenience store chain as well as its Ito-Yokadoand York-Benimaru banners.the market, but said its exit was part of its strategy of “allocating its resourcesto mature countries where it occupies strong and established positions andemerging markets where it has strong growth potential”.The exit was part of a global strategy with the sale of its Colombian assets,and the sale of its operations in <strong>Singapore</strong> as well. The deal also marksanother major deal for Aeon, which continues to expand in Asia.The Japanese giant said it will make Malaysia the group’s Southeast Asianheadquarters, adding that it will aim to grow to 100 outlets locally by 2020.Aeon also said it is ready for more acquisitions in Southeast Asia, saying theregion was “one of the very few areas where we can expect to see greaterdevelopment as far as potential economic growth is concerned”.The Japanese giant said it will make Malaysia the group’s Southeast Asianheadquarters, adding that it will aim to grow to 100 outlets locally by 2020.Aeon also said it is ready for more acquisitions in Southeast Asia, saying theregion was “one of the very few areas where we can expect to see greaterdevelopment as far as potential economic growth is concerned”.TESCO APPOINTS LIDL EXEC AS NEW COUNTRY HEADTesco has announced the appointment of George Fischer as the new CEOof its Malaysian unit, poaching him from Lidl Belgium, where he was theChairman of the management board. Tesco said it will benefi t from Fischer’sinternational experience in the retail industry and the leadership experiencein areas of retail, FMCG, real estate, consumer goods, international businessand logistics.Tesco currently operates 47 outlets in Malaysia, employing around 11,000staff.THAILANDMALAYSIACARREFOUR EXITS AFTER SELLINGS OPS TO AEONCarrefour confi rmed its exit from yet another retail market, as it pursues amore focused drive under new CEO Georges Plassat. The world’s secondlargestretailer said it has agreed to sell its operations in Malaysia to Aeon, ina deal worth €250m.Carrefour operates 26 stores in the country, which generated sales of €400mfor the year ending 30 June 2012. The group is the fourth-largest retailer inthe market, but said its exit was part of its strategy of “allocating its resourcesto mature countries where it occupies strong and established positions andemerging markets where it has strong growth potential”.CARREFOUR EXITS YET ANOTHER MARKET; SELLS OPS TO AEONCarrefour has confi rmed its exit from yet another retail market, as it pursuesa more focused drive under new CEO Georges Plassat. The world’s secondlargestretailer said it has agreed to sell its operations in Malaysia to Aeon, ina deal worth €250m.Carrefour operates 26 stores in the country, which generated sales of €400mfor the year ending 30 June 2012. The group is the fourth-largest retailer inTHAI MARKET HELPS BOOST CASINO SALES IN Q4A strong performance by its operations in emerging markets helped GroupeCasino offset another poor performance in its home market, and helpedpush up overall revenue. The group however stood by its earlier forecast ofexpecting full-year operating profi t to grow above last year’s level.The retail giant saw sales in the last quarter jump up 35.2% to 12.9bn, butthey were up just 3.2% on an organic basis, and the LFL growth of 3.2% wasa slowdown from the 4.2% growth in the third quarter.Sales in France fell by 3.1% to 4.76bn (-2.2% organically), hurt in particularby a 11.7% drop at its Geant Casino hypermarkets. The supermarketsand c-stores recorded more modest declines, while the discount banners(Franprix & Monoprix) and online operations (Cdiscount) recorded growth.Casino attributed the fi gures to its decision to fund permanent price cutson basic products by reducing promotions, attracting fewer shoppers. Itadded: “The economic environment was again quite soft with no real pickupin holiday sales except for online sales”.International sales soared up 75.9% to 8.1bn, growing by 8.5% on anorganic basis. Casino reported strong growth both in Asia (+15.9% organic)and Latin America (+7.8% organic), with like-for-like sales up in mid- to highsingledigits. The group said the operating margin of the French businessshould decline “moderately”, but added that it was “confi dent” that full-yearprofi t would be register a nearly 25% rise to more than 1.94bn.12 The <strong>Retailer</strong>
The <strong>Retailer</strong> 13
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