Tag Archives: ikea

India Lets Starbucks, Ikea Open Wholly Owned Stores After Wal-Mart Reverse

India abandoned a rule against foreign single-brand retailers operating stores without a local partner, paving the way for global companies including Starbucks Corp. and Ikea.

The government ratified a Nov. 24 cabinet decision to raise the ownership limit to 100 percent from 51 percent for single- brand, Trade Minister Anand Sharma said in a statement yesterday. The new rules take effect immediately and require the companies to use smaller Indian companies for at least 30 percent of procurement, he said.

Wal-Mart Stores Inc. , Carrefour SA and other foreign chains are still excluded from India’s $400 billion retail market after an attempt last year to change the law failed. Prime Minister Manmohan Singh’s administration has struggled to advance its initiatives amid opposition from its own allies and a corruption scandal that paralyzed parliament.

“This is a welcome move with a clear potential to lift the general mood in the economy,” Rajan Bharti Mittal, managing director at Bharti Enterprises, Wal-Mart’s Indian partner for wholesale hypermarkets, said in an e-mailed statement. “We hope the initiative is a precursor to further liberalization in the sector in the days to come.”

Pantaloon Retail India Ltd., India’s largest retailer, gained in Mumbai trading after the announcement. The stock rose as much as 10 percent, the most since Nov. 25, while Shoppers Stop Ltd.  surged 20 percent. Trent Ltd., which has a franchise agreement with Tesco Plc, rose as much as 6.9 percent. India’s benchmark Sensitive Index rose 0.4 percent.

Waiting for Multi-Brand

“People think that this would lead to a positive stance on multi-brand retail soon,” Sameer Narang, an Mumbai-based analyst with HDFC Securities Ltd. said in a telephone interview. “My opinion is that it’s not coming any time soon, given the way things went the last time the government tried to introduce it, I doubt a lot of traction will be seen on it.”

Starbucks would compete in India with operators including Lavazza SpA’s Barista Coffee Co. and closely held Cafe Coffee Day. The Seattle-based coffee chain said in November it intended to open its first store in India this year.

“Ikea welcomes the decision from the Indian government to allow 100 percent FDI in single-brand retail,” Nivedeeta Moirangthem, the furniture and housewares retailer’s India spokeswoman said in an e-mailed statement. India is a very interesting potential retail market for the Ikea Group.’’

Calls and e-mails to the Starbucks public-relations team in Seattle weren’t immediately answered. Starbucks signed an agreement with India’s Tata Coffee Ltd. in January 2011 to source beans and consider opening stores.

via India Lets Starbucks, Ikea Open Wholly Owned Stores After Wal-Mart Reverse – Bloomberg.

Italians and sustainability in the retail business: the buzz is online!

Italians speak about sustainability online.This is the result of a recent survey led by Blogmeter from October 1st, 2010 to January 31st, 2011 recording approximately more than 9 thousand post about environmental sustainability related to the major retail chains. Social media proved to be the ideal and most followed communication tool  to promote eco- initiatives, facilitating the construction of  a real “green image” for the retail business sector.

Retailers mentioned by Italians on online conversations about sustainability

When it comes to environmental sustainability Coop and Ikea and are the most discussed with over 40% of the citations. This happened for example with the Sportello Ambiente initiative,  a collaboration between Ikea and Legambiente to offer advice to consumers about home energy efficiency, and with the Coop campaign to promote the consumption of tap water in place of the bottled one.

In general, web users are showing an increaside sensitivity to organic and low-
environmental impact products:  in the online communities dedicated to women, users positively report about the presence of automatic distributors to refill detergents inside the supermarket. Retailers brands are the most mentioned ones, most widely quoted and commented by users because always available on the shelf – like Esselunga Bio, Bio of Auchan, Coop Viviverde. Lidl, for example, is particularly discussed for its range of ecological detergents W5 (on 42 over 199 posts mentioning the retailer) considered to be of good quality and highly recommended among users.

The network also tells us that attention to a more responsible consumption is steadily increasing and influencing the purchase process in different ways: users are more sensitive to labels and the presence of the Ecolabel certification is considered increasingly important for those who are looking for products with a low environmental impact.

The research also showed that a balanced relationship between quality and price of organic and /or eco products is a key criterion in the buying process: very often consumers who are interested in green products do desist because selling prices are too high. (Source: GDO Week)

The colors of Ikea Italy: blue, yellow and.. green!

Ikea Italy announced an environmental investment of € 20 million: 150,000 solar panels to be installed by the end of August 2011in each store so that to create a small solar power station. Clean, renewable, sustainable.

About 150,000 solar panels modules will be placed on a aluminum structure resting on the Ikea store roofs, and in Catania (Sicily), also on the bus shelters in the parking lot. An area as big as 16 football fields to cover about 10% of the electricity needs of Ikea Italy. The first floor (showroom) of all stores will be then lightened with this renewable energy. A total of 10,000,000 kWh of electricity, equal to the average consumption of 3,300 households will be produced each year with a reliable and innovative technology.

This will prevent the annual emission of approximately 4,000 tons of carbon dioxide, equivalent to the quantity of CO2 absorbed annually by 400 acres of tropical forest and the emissions of 3,300 cars travelling an average of 10,000 km. Another key point of the Company policy is to reduce waste and an effective use of raw materials, recycled materials or easy to recycle ones, natural and renewable energy, CO2 emission reduction thanks to a clever consumption, the optimization of facilities’operational activities and electricity from renewable sources (in 2010 equal to 83% of the total consumption).

When dealing with waste management, the goal is to reduce it thanks to the development of a less bulky packaging and a careful waste disposal collection so that to assure their almost full recycling. Ikea is bio too. In restaurants, the group includes more than 58 recipes and organic products from biological origin. In 2010, Ikea Italy purchased 2,080 tons of organic products (+38% compared to 2009). Ikea Italy is now the third third largest Ikea supplier company in the world after China and Poland, as stated by the managing director of Ikea Italy, Lars Petersson during a meeting in Milan. (Source. Greenbiz.it)