Japan's <a href="https://www.wionews.com/business-economy/in-a-first-us-approved-drone-delivers-donuts-to-doorstep-3079">7-Eleven </a>convenience store chain, already under nationwide scrutiny over labor issues, admitted on Tuesday that the company had been underpaying workers for years due to miscalculations.

The chain, a unit of Japanese retail group <a href="https://www.wionews.com/world/japans-capital-braces-for-what-could-be-worst-typhoon-in-60-years-255362">Seven &amp; I Holdings</a>, confirmed errors going back to 2012 and affecting 8,000 stores and over 30,000 workers. The total missed payments amounted to about 490 million yen ($4.5 million), it said.

The error was spotted by labor standards inspectors in September, the company said, confirming an earlier report by financial daily <a href="https://www.wionews.com/business-economy/japans-stock-exchange-nikkei-posts-biggest-weekly-gain-in-over-6-years-2577">Nikkei</a>.

"We deeply apologize to our franchise stores and employees for this problem," the company said in a statement, adding that it would ensure the overdue payments will be paid out.

The convenience store chain has been under pressure to review its 24-hour store policy, with franchise owners struggling to keep stores staffed around the clock amid the tightest labor market in 40 years.

The company has been testing shorter hours at some stores after the plight of some franchise owners attracted nationwide attention.

The 7-Eleven stores, which originated in the United States but are now owned by Japan's Seven &amp; I, expanded rapidly since the 1970s as their 24-hour accessibility proved a perfect match with the country's dense population and late-night work culture.

Until recently, the convenience store industry's high margins and strong growth were the envy of the rest of Japan's retail sector that was struggling with pricing pressure and lean consumer spending.

Analysts, however, say the convenience store market is now highly saturated and a demographic crunch means the industry has little room for growth.

Japan's 7-Eleven convenience store chain, already under nationwide scrutiny over labor issues, admitted on Tuesday that the company had been underpaying workers for years due to miscalculations.

Japan's 7-Eleven convenience store chain, already under nationwide scrutiny over labor issues, admitted on Tuesday that the company had been underpaying workers for years due to miscalculations. The chain, a unit of Japanese retail group Seven & I Holdings, confirmed errors going back to 2012 and affecting 8,000 stores and over 30,000 workers. The total missed payments amounted to about 490 million yen ($4.5 million), it said. The error was spotted by labor standards inspectors in September, the company said, confirming an earlier report by financial daily Nikkei. "We deeply apologize to our franchise stores and employees for this problem," the company said in a statement, adding that it would ensure the overdue payments will be paid out. The convenience store chain has been under pressure to review its 24-hour store policy, with franchise owners struggling to keep stores staffed around the clock amid the tightest labor market in 40 years. The company has been testing shorter hours at some stores after the plight of some franchise owners attracted nationwide attention. The 7-Eleven stores, which originated in the United States but are now owned by Japan's Seven & I, expanded rapidly since the 1970s as their 24-hour accessibility proved a perfect match with the country's dense population and late-night work culture. Until recently, the convenience store industry's high margins and strong growth were the envy of the rest of Japan's retail sector that was struggling with pricing pressure and lean consumer spending. Analysts, however, say the convenience store market is now highly saturated and a demographic crunch means the industry has little room for growth.

Japan's 7-Eleven admits it underpaid staff for years

Automobile retail sales are likely to pick up with an improvement in consumer sentiment during the ongoing festive season due to recent liquidity easing measures announced by the government and on back of favourable monsoons, according to India Ratings and Research (Ind-Ra).

Consequently, inventory build-up at the dealer level in anticipation of increased demand during this period is likely to lead to increased wholesale billing by original equipment manufacturers (OEMs) during October, it said.

"However, with existing high dealer inventory levels, production cuts by OEMs are likely to continue in the near-term," said Ind-Ra in the credit news digest on India's auto sector.

The report highlights trends in sub-segments of the auto sector including passenger vehicles (PVs), commercial vehicles (CVs) and two-wheelers (2Ws) with a focus on sales volumes growth, market share movement, change in commodity prices and recent rating actions.

Domestic automobile industry's sales continued their downward trend in September with a 22 per cent year-on-year decline on weak consumer sentiments owing to the slowing economy. Inventory at dealer level remained high, leading to most OEMs continuing to implement production cuts.

Over April to September, overall auto industry undertook a production cut of 13 per cent year-on-year with 16 per cent, 27 per cent and 13 per cent production cuts in PV, CV and 2W segments respectively.

In the PV segment, market leader Maruti Suzuki India took a production cut of about 21 per cent. The average inventory for PVs increased marginally in September to 30 to 35 days from 25 to 30 days in August.

The average inventory for CVs decreased marginally in September to 50 to 55 days from 55 to 60 days in August. But the average inventory for 2W remained high at 60 to 65 days.

PV sales volume declined 24 per cent on account of a 33 per cent drop in the sales volume of cars. Cars sales volume continue to decline on weak consumer sentiments amid a slowdown in urban and rural household consumption, a rise in the cost of ownership and the growing preference of shared mobility over buying a car.

CV sales volume declined 39 per cent in September owing to decreased industry demand on account of tight liquidity conditions amid slowed economic activity. 2W sales fell 22 per cent on weak rural and semi-urban demand.

In the PV segment, Maruti's market share dropped by around 3 per cent to 49 per cent in September on lower sales volumes, while Hyundai Motor India gained 2 per cent market share. Tata Motors Ltd's CV market share dropped by around 5 per cent to 41 per cent while Mahindra &amp; Mahindra Ltd gained 8 per cent market share.

2W market leader Hero MotoCorp Ltd's market share increased by around 1 per cent to 36% in September, said Ind-Ra in the news digest.

Automobile retail sales are likely to pick up with an improvement in consumer sentiment during the ongoing festive season due to recent liquidity easing measures announced by the government and on back of favourable monsoons, according to India Ratings and Research (Ind-Ra).

Automobile retail sales are likely to pick up with an improvement in consumer sentiment during the ongoing festive season due to recent liquidity easing measures announced by the government and on back of favourable monsoons, according to India Ratings and Research (Ind-Ra). Consequently, inventory build-up at the dealer level in anticipation of increased demand during this period is likely to lead to increased wholesale billing by original equipment manufacturers (OEMs) during October, it said. "However, with existing high dealer inventory levels, production cuts by OEMs are likely to continue in the near-term," said Ind-Ra in the credit news digest on India's auto sector. The report highlights trends in sub-segments of the auto sector including passenger vehicles (PVs), commercial vehicles (CVs) and two-wheelers (2Ws) with a focus on sales volumes growth, market share movement, change in commodity prices and recent rating actions. Domestic automobile industry's sales continued their downward trend in September with a 22 per cent year-on-year decline on weak consumer sentiments owing to the slowing economy. Inventory at dealer level remained high, leading to most OEMs continuing to implement production cuts. Over April to September, overall auto industry undertook a production cut of 13 per cent year-on-year with 16 per cent, 27 per cent and 13 per cent production cuts in PV, CV and 2W segments respectively. In the PV segment, market leader Maruti Suzuki India took a production cut of about 21 per cent. The average inventory for PVs increased marginally in September to 30 to 35 days from 25 to 30 days in August. The average inventory for CVs decreased marginally in September to 50 to 55 days from 55 to 60 days in August. But the average inventory for 2W remained high at 60 to 65 days. PV sales volume declined 24 per cent on account of a 33 per cent drop in the sales volume of cars. Cars sales volume continue to decline on weak consumer sentiments amid a slowdown in urban and rural household consumption, a rise in the cost of ownership and the growing preference of shared mobility over buying a car. CV sales volume declined 39 per cent in September owing to decreased industry demand on account of tight liquidity conditions amid slowed economic activity. 2W sales fell 22 per cent on weak rural and semi-urban demand. In the PV segment, Maruti's market share dropped by around 3 per cent to 49 per cent in September on lower sales volumes, while Hyundai Motor India gained 2 per cent market share. Tata Motors Ltd's CV market share dropped by around 5 per cent to 41 per cent while Mahindra & Mahindra Ltd gained 8 per cent market share. 2W market leader Hero MotoCorp Ltd's market share increased by around 1 per cent to 36% in September, said Ind-Ra in the news digest.

Automobile retail sales likely to improve in festive season: Report

Fashion retailer Forever 21 Inc said on Sunday that it has filed for Chapter 11 bankruptcy protection to restructure its business, joining a growing list of brick-and-mortar players who have taken a hit from fierce e-commerce competition.

<a href="https://www.wionews.com/entertainment/ariana-grande-sues-forever-21-for-10-million-over-look-alike-ad-campaign-247429">The company</a> said it plans to exit most of its international locations in Asia and Europe, but will continue operations in Mexico and Latin America.

The retailer said it received $275 million in financing from its existing lenders with JPMorgan Chase Bank, NA&nbsp;as an agent, and $75 million in new capital from TPG Sixth Street Partners, and certain of its affiliated funds.

It lists both assets and liabilities in the range of $1 billion to $10 billion, according to the court filing in the US&nbsp;Bankruptcy Court for the District of Delaware.

Since the start of 2017, more than 20 US&nbsp;retailers, including Sears Holdings Corp&nbsp;and Toys 'R' Us, have filed for bankruptcy, succumbing to the onslaught of fierce e-commerce competition from Amazon Inc.

Fashion retailer Forever 21 Inc said on Sunday that it has filed for Chapter 11 bankruptcy protection to restructure its business, joining a growing list of brick-and-mortar players who have taken a hit from fierce e-commerce competition.

Fashion retailer Forever 21 Inc said on Sunday that it has filed for Chapter 11 bankruptcy protection to restructure its business, joining a growing list of brick-and-mortar players who have taken a hit from fierce e-commerce competition. The company said it plans to exit most of its international locations in Asia and Europe, but will continue operations in Mexico and Latin America. The retailer said it received $275 million in financing from its existing lenders with JPMorgan Chase Bank, NA as an agent, and $75 million in new capital from TPG Sixth Street Partners, and certain of its affiliated funds. It lists both assets and liabilities in the range of $1 billion to $10 billion, according to the court filing in the US Bankruptcy Court for the District of Delaware. Since the start of 2017, more than 20 US retailers, including Sears Holdings Corp and Toys 'R' Us, have filed for bankruptcy, succumbing to the onslaught of fierce e-commerce competition from Amazon Inc.

Forever 21 files for bankruptcy; to pull out of Asian markets

After years of soggy&nbsp;inflation&nbsp;and the long reign of&nbsp;<a href="https://www.wionews.com/world/new-delhi-tokyo-will-be-working-on-third-country-projects-in-indias-vicinity-says-indian-envoy-to-japan-230663">Japan's</a>&nbsp;tight-fisted shoppers, businesses in the world's third-largest economy are adopting new methods to lift prices, from artificial intelligence to simple packaging tweaks.

Despite many rounds of stimulus,&nbsp;Japan's&nbsp;policymakers have failed to jolt households out of the deflationary mindset that followed the 1990s property crash, which meant businesses refused to raise prices for fear of losing customers.

Demand-based dynamic pricing,&nbsp;however, has allowed some Japanese&nbsp;retailers to discretely bump up prices without triggering the kind of customer backlash seen in more blatant attempts at repricing in the past.

Yokohama Marinos, for example, a club in&nbsp;Japan's&nbsp;top football league, introduced artificial intelligence last year to more closely align ticket prices with demand.

"Previously, it was difficult to find the best prices between demand and value of each match," said Hiroshi Nagai, General Manager for fan relationships at the club.

"The most fascinating thing about dynamic pricing is that it can offer more choices to customers", Nagai added.

Dynamic pricing, or surge pricing, is common among data-driven businesses such as ride-hailing services but is a relatively new concept for most traditional Japanese&nbsp;firms.

Using the technology, the Marinos sold tickets for a popular seating area for a March 2 match at 7,400 Yen, two weeks before the game, but cut prices to as low as 4,000 yen to fill empty seats as the match approached.

Koji Kawashimo, a 34-year old who has been a Marinos fan for more than a decade, said he had no problem with his team adopting dynamic pricing.

"I would pay for what I like. I want to pay if it's worth it," he said.

Hotels are also introducing dynamic pricing in their room rates including Centurion International, which operates over 20 hotels in <a href="https://www.wionews.com/world/trump-says-the-us-reaches-trade-deals-with-japan-no-word-on-cars-250133">Japan</a>.

Centurion began using AI to collect information to charge higher prices when demand is strong and offer discounts when demand falls to reduce vacancies.

"The system provides us [with] information on competitors such as the pace of reservation, which is great. It's a big advantage," said Hironobu Bun, revenue manager at Centurion International.

Changing Mindsets

Economists believe that it will take more meaningful structural changes to&nbsp;Japan's&nbsp;economy to revive stagnant prices, which will, in turn, help businesses deal with sticky overheads and restore profits.

However, developments like the adoption of dynamic pricing lay the groundwork for more radical changes in&nbsp;how&nbsp;companies set prices for their goods and services.

"If dynamic pricing can change people's mindset so that they believe price can fluctuate more, there's a chance&nbsp;firms&nbsp;may be able to raise prices more easily where demand is strong," said Izuru Kato, chief economist at Totan Research.

At the same time, other businesses are looking at more cosmetic ways to drive the consumer to accept higher prices.

<a href="https://www.wionews.com/world/japan-helping-india-to-become-5-trillion-economy-pm-modi-to-indian-diaspora-230864">Japan's</a>&nbsp;"gyudon" beef rice bowls have become a symbol of the country's deflation due to their aggressively low prices. But some outlets are turning that trope around by offering "premium bowls" with better-quality meat for more than double the standard price.

The 500,000 "sukiyaki" beef rice bowls offered by fast-food chain Yoshinoya Holdings Co in August were sold out in about two weeks - much faster than the company had expected - despite a price tag of 860 yen per bowl, double that of a standard dish.

"The customer response has been good. If they see value in it, they would pay even if price is a little higher," said Yuji Terasawa, a spokesman of the company.

While such tactics seem to work, they take careful planning and preparation. Fast&nbsp;Retailing Co Ltd, whose budget clothing chain Uniqlo boomed during the country's deflation era, learned the hard way when sales slumped after it raised prices in 2014.&nbsp;

In contrast, discount barber chain QB House earlier this year raised prices for a 10-minute haircut to 1,200 yen from 1,080 Yen, explaining it was needed to increase salaries to secure better-trained barbers.

That move followed eight years of checking the customer mood through regular marketing surveys.

While the hike triggered a 2 per cent&nbsp;decline in customers from the previous year, the drop was much smaller than the company's projection of a 6 per cent&nbsp;fall.

"The price of a haircut is still lower than other places," said Kazuaki Mimura, a 34-year-old employee of a service-sector firm.

"I'm willing to accept a hike of a few hundred yen because the service here is quick and my haircut is done properly."

After years of soggy inflation and the long reign of Japan's tight-fisted shoppers, businesses in the world's third-largest economy are adopting new methods to lift prices, from artificial intelligence to simple packaging tweaks.

After years of soggy inflation and the long reign of Japan's tight-fisted shoppers, businesses in the world's third-largest economy are adopting new methods to lift prices, from artificial intelligence to simple packaging tweaks. Despite many rounds of stimulus, Japan's policymakers have failed to jolt households out of the deflationary mindset that followed the 1990s property crash, which meant businesses refused to raise prices for fear of losing customers. Demand-based dynamic pricing, however, has allowed some Japanese retailers to discretely bump up prices without triggering the kind of customer backlash seen in more blatant attempts at repricing in the past. Yokohama Marinos, for example, a club in Japan's top football league, introduced artificial intelligence last year to more closely align ticket prices with demand. "Previously, it was difficult to find the best prices between demand and value of each match," said Hiroshi Nagai, General Manager for fan relationships at the club. "The most fascinating thing about dynamic pricing is that it can offer more choices to customers", Nagai added. Dynamic pricing, or surge pricing, is common among data-driven businesses such as ride-hailing services but is a relatively new concept for most traditional Japanese firms. Using the technology, the Marinos sold tickets for a popular seating area for a March 2 match at 7,400 Yen, two weeks before the game, but cut prices to as low as 4,000 yen to fill empty seats as the match approached. Koji Kawashimo, a 34-year old who has been a Marinos fan for more than a decade, said he had no problem with his team adopting dynamic pricing. "I would pay for what I like. I want to pay if it's worth it," he said. Hotels are also introducing dynamic pricing in their room rates including Centurion International, which operates over 20 hotels in Japan. Centurion began using AI to collect information to charge higher prices when demand is strong and offer discounts when demand falls to reduce vacancies. "The system provides us [with] information on competitors such as the pace of reservation, which is great. It's a big advantage," said Hironobu Bun, revenue manager at Centurion International. Changing Mindsets Economists believe that it will take more meaningful structural changes to Japan's economy to revive stagnant prices, which will, in turn, help businesses deal with sticky overheads and restore profits. However, developments like the adoption of dynamic pricing lay the groundwork for more radical changes in how companies set prices for their goods and services. "If dynamic pricing can change people's mindset so that they believe price can fluctuate more, there's a chance firms may be able to raise prices more easily where demand is strong," said Izuru Kato, chief economist at Totan Research. At the same time, other businesses are looking at more cosmetic ways to drive the consumer to accept higher prices. Japan's "gyudon" beef rice bowls have become a symbol of the country's deflation due to their aggressively low prices. But some outlets are turning that trope around by offering "premium bowls" with better-quality meat for more than double the standard price. The 500,000 "sukiyaki" beef rice bowls offered by fast-food chain Yoshinoya Holdings Co in August were sold out in about two weeks - much faster than the company had expected - despite a price tag of 860 yen per bowl, double that of a standard dish. "The customer response has been good. If they see value in it, they would pay even if price is a little higher," said Yuji Terasawa, a spokesman of the company. While such tactics seem to work, they take careful planning and preparation. Fast Retailing Co Ltd, whose budget clothing chain Uniqlo boomed during the country's deflation era, learned the hard way when sales slumped after it raised prices in 2014. In contrast, discount barber chain QB House earlier this year raised prices for a 10-minute haircut to 1,200 yen from 1,080 Yen, explaining it was needed to increase salaries to secure better-trained barbers. That move followed eight years of checking the customer mood through regular marketing surveys. While the hike triggered a 2 per cent decline in customers from the previous year, the drop was much smaller than the company's projection of a 6 per cent fall. "The price of a haircut is still lower than other places," said Kazuaki Mimura, a 34-year-old employee of a service-sector firm. "I'm willing to accept a hike of a few hundred yen because the service here is quick and my haircut is done properly."

Inflation by stealth: How Japan's firms fight the frugal retail psyche

<a href="https://www.wionews.com/business-economy/indias-retail-inflation-rate-hits-17-month-low-in-november-183540">India's retail inflation</a> rate hit a seven-month high in May due to higher food prices, government data showed on Wednesday, but stayed below the central bank's target and potentially gives it room for more interest rate cuts to help a sluggish economy.

Annual retail inflation in May was 3.05 per cent, up from the revised 2.99 per cent&nbsp;in the previous month, and above forecasts by analysts.

A Reuters poll had predicted a retail inflation rate of 3.01 per cent for May.

Core consumer inflation, which strips out food and fuel prices, was estimated at 4.1-4.2 per cent&nbsp;in May, lower than April's 4.53 per cent-4.57 per cent, three analysts said after seeing the inflation figures on Wednesday.

While food <a href="https://www.wionews.com/business-%26-economy/retail-inflation-eases-rbi-may-keep-interest-rates-on-hold-158931">inflation</a> has been rising, the moderation in core inflation has capped the overall inflationary pressures in the economy, said Tushar Arora, senior economist at HDFC Bank.

"We believe that overall inflation would remain subdued, allowing the central bank to cut the policy rate yet again," he said.

Inflation has sharply come down from a peak of more than 12 per cent&nbsp;in 2013 and has now come in below the Reserve Bank of India's medium-term target of 4 per cent&nbsp;for ten consecutive months.

Comforted by the subdued price pressures, and increasingly concerned by the economy's faltering growth, the RBI has cut its policy rate three times since February.

The most recent reduction was last week when the RBI lowered its repo rate by 25 basis points to 5.75 per cent and changed its policy stance to "accommodative" to meet the needs of the economy and a banking system laden with bad debts.

Prime Minister Narendra Modi secured a second term after a landslide election victory last month despite the economic slowdown.

During the January-March quarter, the gross domestic product grew 5.8 per cent annually, the lowest in over four years and well below the rate needed to generate enough jobs for millions of young Indians entering the labour market each month.

The combination of low growth and low inflation is particularly difficult for farmers, who benefit from higher food prices.

Retail food prices, which make up nearly half of India's inflation basket, increased 1.83 per cent in May from a year earlier, up from 1.10 per cent in April. Food prices began rising again in March, having fallen in the five months through February.

The monsoon season rains arrived a week late this month, by which time reservoirs had dried up in many places, and economists say inflation could pick up in coming months if any shortfall in rains causes a spike in food prices.

RBI's raised its inflation outlook for April-September to 3.0-3.1 per cent, from its April outlook of 2.9-3.0 per cent.

India's retail inflation rate hit a seven-month high in May due to higher food prices, government data showed on Wednesday, but stayed below the central bank's target and potentially gives it room for more interest rate cuts to help a sluggish economy.

India's retail inflation rate hit a seven-month high in May due to higher food prices, government data showed on Wednesday, but stayed below the central bank's target and potentially gives it room for more interest rate cuts to help a sluggish economy. Annual retail inflation in May was 3.05 per cent, up from the revised 2.99 per cent in the previous month, and above forecasts by analysts. A Reuters poll had predicted a retail inflation rate of 3.01 per cent for May. Core consumer inflation, which strips out food and fuel prices, was estimated at 4.1-4.2 per cent in May, lower than April's 4.53 per cent-4.57 per cent, three analysts said after seeing the inflation figures on Wednesday. While food inflation has been rising, the moderation in core inflation has capped the overall inflationary pressures in the economy, said Tushar Arora, senior economist at HDFC Bank. "We believe that overall inflation would remain subdued, allowing the central bank to cut the policy rate yet again," he said. Inflation has sharply come down from a peak of more than 12 per cent in 2013 and has now come in below the Reserve Bank of India's medium-term target of 4 per cent for ten consecutive months. Comforted by the subdued price pressures, and increasingly concerned by the economy's faltering growth, the RBI has cut its policy rate three times since February. The most recent reduction was last week when the RBI lowered its repo rate by 25 basis points to 5.75 per cent and changed its policy stance to "accommodative" to meet the needs of the economy and a banking system laden with bad debts. Prime Minister Narendra Modi secured a second term after a landslide election victory last month despite the economic slowdown. During the January-March quarter, the gross domestic product grew 5.8 per cent annually, the lowest in over four years and well below the rate needed to generate enough jobs for millions of young Indians entering the labour market each month. The combination of low growth and low inflation is particularly difficult for farmers, who benefit from higher food prices. Retail food prices, which make up nearly half of India's inflation basket, increased 1.83 per cent in May from a year earlier, up from 1.10 per cent in April. Food prices began rising again in March, having fallen in the five months through February. The monsoon season rains arrived a week late this month, by which time reservoirs had dried up in many places, and economists say inflation could pick up in coming months if any shortfall in rains causes a spike in food prices. RBI's raised its inflation outlook for April-September to 3.0-3.1 per cent, from its April outlook of 2.9-3.0 per cent.

May inflation hits seven-month high; still room for rate cut

The annual retail inflation eased for the second straight month in February to 4.44 percent, as food prices fell, government data showed on Monday.&nbsp;

The retail inflation in January was 5.07 per cent.

Retail inflation, measured by Consumer Price Index (CPI) stayed above 5 percent in January and December, mainly due to hardening housing, fuel and food prices, while inching towards RBI&rsquo;s upper tolerance level of inflation at 6 percent.

In February 2017, however, it was 3.65 per cent.

It was 4.88 per cent in November last year.

Data released by the Central Statistics Office (CSO) showed that the rate of price rise in the consumer food segment was lower at 3.26 per cent in February, as against 4.7 per cent in the previous month.

Inflation in vegetables was 17.57 per cent last month, down from 26.97 per cent in January), and for fruits, it was 4.80 per cent (as against 6.24 per cent).

Milk and its products too were less expensive with inflation print of 4.21 per cent, cereals and products at 2.10 per cent, meat &amp; fish at 3.31 per cent while for eggs the prices grew at a slower pace of 8.51 per cent.

Inflation for the fuel and light category was at 6.80 per cent in February (against 7.73 per cent in January). However, the rate of price increase was higher for transport and communication services at 2.39 per cent (1.97 per cent January).&nbsp;

(With inputs from Agencies)

The annual retail inflation eased for the second straight month in February to 4.44 percent, as food prices fell, government data showed on Monday. The retail inflation in January was 5.07 per cent. Retail inflation, measured by Consumer Price Index (CPI) stayed above 5 percent in January and December, mainly due to hardening housing, fuel and food prices, while inching towards RBI’s upper tolerance level of inflation at 6 percent. In February 2017, however, it was 3.65 per cent. It was 4.88 per cent in November last year. Data released by the Central Statistics Office (CSO) showed that the rate of price rise in the consumer food segment was lower at 3.26 per cent in February, as against 4.7 per cent in the previous month. Inflation in vegetables was 17.57 per cent last month, down from 26.97 per cent in January), and for fruits, it was 4.80 per cent (as against 6.24 per cent). Milk and its products too were less expensive with inflation print of 4.21 per cent, cereals and products at 2.10 per cent, meat & fish at 3.31 per cent while for eggs the prices grew at a slower pace of 8.51 per cent. Inflation for the fuel and light category was at 6.80 per cent in February (against 7.73 per cent in January). However, the rate of price increase was higher for transport and communication services at 2.39 per cent (1.97 per cent January). (With inputs from Agencies)

Retail inflation falls to 4.4% in February on cheaper food and fuel

US job creation accelerated in January, as labour markets continued to absorb workers at a robust pace, unemployment clung to a record low and wages moved higher, the government reported today.

The world&#39;s largest economy added 200,000 net new positions in the month, more than expected, driven by gains in construction, retail, restaurants and health care, the Labour Department reported.

The result beat forecasts, which predicted an increase of 180,000, and helped offset December&#39;s disappointing result.

Meanwhile, the unemployment rate remained at 4.1 per cent for the fourth month in a row.

Hourly wages continued to rise for the month as labour markets remained tight -- with wages posting their largest 12 -month increase in more than nine years.

That will strengthen the case for the Federal Reserve to raise the benchmark interest rate in March, as it is widely expected to do.

Hourly wages rose 0.3 per cent from the prior month to USD 26.74, putting worker pay up 2.9 per cent compared to January of last year, the largest 12-month gain since June 2009.

Over the same period the consumer price index gained 2.1 percent, seasonally adjusted, but rising wages would be expected to put more pressure on prices.

The solid job gains were sure to be a relief for an embattled White House, as President Donald Trump has taken credit for the extended run of good economic news amid political turmoil.

Hiring by speciality trade contractors drove job creation in the construction sector, which added 36,000 new positions, while restaurants and bars added 31,000 new jobs.

The ranks of health care workers swelled for the month as well, adding 21,000 new positions.

Revisions to November and December subtracted a net 24,000 positions, bringing average job creation over the last three months of the year to 192,000, beating the 2017 monthly average of 181,000.

With the 4.1 per cent unemployment rate, a 17-year-low, the ranks of the long-term unemployed -- those looking for work for 27 weeks or longer -- continued to drop, falling six percent to 1.4 million.

However, the unemployment rate for African-Americans, which Trump hailed this week in his State of the Union address, rose nine-tenths of a percentage point to 7.7 percent, just below the 7.8 per cent in January last year.

Trump took office a year ago, pledging to create 25 million new jobs over a decade, or just over 200,000 per month.

However, Labour Department figures released today show the economy added 2.17 million jobs in 2017, fewer than 2016, when there were 2.34 million new jobs.

Meanwhile, the unemployment rate remained at 4.1 per cent for the fourth month in a row

US job creation accelerated in January, as labour markets continued to absorb workers at a robust pace, unemployment clung to a record low and wages moved higher, the government reported today. The world's largest economy added 200,000 net new positions in the month, more than expected, driven by gains in construction, retail, restaurants and health care, the Labour Department reported. The result beat forecasts, which predicted an increase of 180,000, and helped offset December's disappointing result. Meanwhile, the unemployment rate remained at 4.1 per cent for the fourth month in a row. Hourly wages continued to rise for the month as labour markets remained tight -- with wages posting their largest 12 -month increase in more than nine years. That will strengthen the case for the Federal Reserve to raise the benchmark interest rate in March, as it is widely expected to do. Hourly wages rose 0.3 per cent from the prior month to USD 26.74, putting worker pay up 2.9 per cent compared to January of last year, the largest 12-month gain since June 2009. Over the same period the consumer price index gained 2.1 percent, seasonally adjusted, but rising wages would be expected to put more pressure on prices. The solid job gains were sure to be a relief for an embattled White House, as President Donald Trump has taken credit for the extended run of good economic news amid political turmoil. Hiring by speciality trade contractors drove job creation in the construction sector, which added 36,000 new positions, while restaurants and bars added 31,000 new jobs. The ranks of health care workers swelled for the month as well, adding 21,000 new positions. Revisions to November and December subtracted a net 24,000 positions, bringing average job creation over the last three months of the year to 192,000, beating the 2017 monthly average of 181,000. With the 4.1 per cent unemployment rate, a 17-year-low, the ranks of the long-term unemployed -- those looking for work for 27 weeks or longer -- continued to drop, falling six percent to 1.4 million. However, the unemployment rate for African-Americans, which Trump hailed this week in his State of the Union address, rose nine-tenths of a percentage point to 7.7 percent, just below the 7.8 per cent in January last year. Trump took office a year ago, pledging to create 25 million new jobs over a decade, or just over 200,000 per month. However, Labour Department figures released today show the economy added 2.17 million jobs in 2017, fewer than 2016, when there were 2.34 million new jobs.

US adds 200,000 new jobs in January

The annual retail inflation accelerated in December to a 17-month high of 5.21 per cent, government data showed on Friday, mainly driven by faster rises in prices of food and fuel products.

Analysts polled by Reuters had forecast December&#39;s CPI inflation to rise to 5.10 per cent from November&#39;s 4.88 per cent.

In December, the Reserve Bank of India held its policy rate and reiterated a neutral stance but said that &quot;all possibilities are on the table&quot; depending on how price pressures and growth pan out.

For the six months through March, the RBI slightly raised its inflation projection - already above its 4 percent medium-term target - to 4.3-4.7 per cent.

Factors that indicate higher December inflation are increased prices for some foods and the impact of higher pay for government employees.

The annual retail inflation accelerated in December to a 17-month high of 5.21 per cent, government data showed on Friday, mainly driven by faster rises in prices of food and fuel products. Analysts polled by Reuters had forecast December's CPI inflation to rise to 5.10 per cent from November's 4.88 per cent. In December, the Reserve Bank of India held its policy rate and reiterated a neutral stance but said that "all possibilities are on the table" depending on how price pressures and growth pan out. For the six months through March, the RBI slightly raised its inflation projection - already above its 4 percent medium-term target - to 4.3-4.7 per cent.

December retail inflation hits 17-month high of 5.21 per cent

Amazon.com Inc`s Australian arm began taking orders on Tuesday, ending speculation about the timing of its launch in the world`s No. 12 economy and likely dashing hopes of a holiday boost for struggling brick-and-mortar rivals.

The global retailer said it would offer free shipping nationwide for purchases over A$49 ($37.26), with millions of products available from clothes to sporting goods to consumer electronics.

The move establishes the $550 billion behemoth as an aggressive presence in the sluggish Australian retail sector, just as shopkeepers were hoping for a rush of sales over the important Christmas holiday season.

Amazon`s Australia country manager, Rocco Braeuniger, said in a statement the U.S. company would &quot;earn the trust&quot; of Australian shoppers and, over time, create &quot;thousands of new jobs&quot;.

Australia has long been home to Amazon-registered sellers, but until Tuesday they were limited to sending goods offshore because the Seattle conglomerate did not have a warehouse in the country of 24 million people. This also meant Australians had to wait longer times, and pay higher fees, for shipping.

The company has now set up a massive distribution warehouse on the outskirts of Melbourne city, on the country`s east coast where four-fifths of the population live, and the company hopes to cut delivery time to as little as a day.

Under the free delivery offer, Amazon said it estimated delivery times as short as three business days in the cities of Sydney, Melbourne, Brisbane, Adelaide and Canberra - home to half the country`s population - while shipping to remote areas could take 10 days.

Shoppers could pay a fee for faster shipping times.

Amazon did not comment on any last-minute problems from an order-taking trial which began on Nov. 23.

It said it planned to offer its rapid-shipping subscription service, Prime, in mid-2018, in a sign it is unperturbed by the geographic challenge posed by one of the world`s most sparsely populated countries. Australia is the size of the mainland United States, with one-thirteenth its population.

Australian retail shares have fallen sharply since Amazon confirmed plans for the country in April. Shares of top department store operator Myer Holdings Ltd are down 30 percent since that time.

Myer has been shutting stores and ramping up online sales, and last month it halved its three-year target for growth in sales per square metre. Its online sales leapt 68 percent in the 13 weeks to Oct. 28, but remained only a tiny fraction of its total revenue.

Shares of No. 1 electronics retailer Harvey Norman Holdings Ltd are down 7 percent since April, while smaller JB HiFi are off by 6 percent amid fears of competition from Amazon.

($1 = 1.3149 Australian dollars)

Amazon.com Inc`s Australian arm began taking orders on Tuesday, ending speculation about the timing of its launch in the world`s No. 12 economy and likely dashing hopes of a holiday boost for struggling brick-and-mortar rivals. The global retailer said it would offer free shipping nationwide for purchases over A$49 ($37.26), with millions of products available from clothes to sporting goods to consumer electronics. The move establishes the $550 billion behemoth as an aggressive presence in the sluggish Australian retail sector, just as shopkeepers were hoping for a rush of sales over the important Christmas holiday season. Amazon`s Australia country manager, Rocco Braeuniger, said in a statement the U.S. company would "earn the trust" of Australian shoppers and, over time, create "thousands of new jobs". Australia has long been home to Amazon-registered sellers, but until Tuesday they were limited to sending goods offshore because the Seattle conglomerate did not have a warehouse in the country of 24 million people. This also meant Australians had to wait longer times, and pay higher fees, for shipping. The company has now set up a massive distribution warehouse on the outskirts of Melbourne city, on the country`s east coast where four-fifths of the population live, and the company hopes to cut delivery time to as little as a day. Under the free delivery offer, Amazon said it estimated delivery times as short as three business days in the cities of Sydney, Melbourne, Brisbane, Adelaide and Canberra - home to half the country`s population - while shipping to remote areas could take 10 days. Shoppers could pay a fee for faster shipping times. Amazon did not comment on any last-minute problems from an order-taking trial which began on Nov. 23. It said it planned to offer its rapid-shipping subscription service, Prime, in mid-2018, in a sign it is unperturbed by the geographic challenge posed by one of the world`s most sparsely populated countries. Australia is the size of the mainland United States, with one-thirteenth its population. Australian retail shares have fallen sharply since Amazon confirmed plans for the country in April. Shares of top department store operator Myer Holdings Ltd are down 30 percent since that time. Myer has been shutting stores and ramping up online sales, and last month it halved its three-year target for growth in sales per square metre. Its online sales leapt 68 percent in the 13 weeks to Oct. 28, but remained only a tiny fraction of its total revenue. Shares of No. 1 electronics retailer Harvey Norman Holdings Ltd are down 7 percent since April, while smaller JB HiFi are off by 6 percent amid fears of competition from Amazon. ($1 = 1.3149 Australian dollars)

Amazon Australia goes live in time to ruin rivals' Christmas

Poland adopted legislation on Friday that will ban most Sunday trading by 2020, with opinion surveys showing that consumers have mixed feelings about the move in the heavily Catholic EU state.&nbsp;

First presented last year by Poland`s Solidarity trade union as a citizens` initiative bill, the new legislation limits shopping to the first and last Sundays of the month as of March 2018.

Trade will only be allowed on the last Sunday of the month in 2019 before a wider ban takes effect in 2020 that will allow shopping on seven Sundays per year, including two before Christmas and one before Easter.

The move applies to foreign-owned hypermarket chains as well as other non-Polish players, but will still allow online shopping as well as smaller locally-owned shops including bakeries and petrol stations to do business.

Lawmakers in Poland`s right-wing dominated 460-seat parliament passed the ban with 254 votes in favour to 156 against and 23 abstentions.

The Solidarity trade union says it sought the move to ensure retail staff gets free weekends, but opposition politicians and other critics argue that it will limit job opportunities for students and cramp cross-border shopping from the Baltic states, Belarus, Ukraine, and Slovakia.

Solidarity is allied with Poland`s governing conservative Law and Justice (PiS) party, which is closely tied to the powerful Roman Catholic Church, long an advocate of shutting shops on Sundays for religious reasons.&nbsp;

Sunday shopping became a popular family pastime in Poland with the advent of the free market after the 1989 collapse of communism, but surveys published this week suggest that consumers have mixed feelings.&nbsp;

The independent Kantar TNS pollsters found that 76 percent of respondents supported a compromise that would allow Sunday shopping, but also give retail workers two free weekends per month.

However, the Warsaw-based CBOS agency found that 58 percent of respondents supported a blanket Sunday shopping ban, while just 37 percent were opposed. It also found that 52 percent of respondents said they shop on Sunday.

Switzerland and Norway limit Sunday shopping, while Austria has a blanket ban.&nbsp;

Up to now, stores in Poland have remained closed for 12 days a year for major national or religious holidays.

The Solidarity trade union says it sought the move to ensure retail staff gets free weekends, but opposition politicians and other critics argue that it will limit job opportunities for students and cramp cross-border shopping from the Baltic states, Belarus, Ukraine, and Slovakia

Poland adopted legislation on Friday that will ban most Sunday trading by 2020, with opinion surveys showing that consumers have mixed feelings about the move in the heavily Catholic EU state. First presented last year by Poland`s Solidarity trade union as a citizens` initiative bill, the new legislation limits shopping to the first and last Sundays of the month as of March 2018. Trade will only be allowed on the last Sunday of the month in 2019 before a wider ban takes effect in 2020 that will allow shopping on seven Sundays per year, including two before Christmas and one before Easter. The move applies to foreign-owned hypermarket chains as well as other non-Polish players, but will still allow online shopping as well as smaller locally-owned shops including bakeries and petrol stations to do business. Lawmakers in Poland`s right-wing dominated 460-seat parliament passed the ban with 254 votes in favour to 156 against and 23 abstentions. The Solidarity trade union says it sought the move to ensure retail staff gets free weekends, but opposition politicians and other critics argue that it will limit job opportunities for students and cramp cross-border shopping from the Baltic states, Belarus, Ukraine, and Slovakia. Solidarity is allied with Poland`s governing conservative Law and Justice (PiS) party, which is closely tied to the powerful Roman Catholic Church, long an advocate of shutting shops on Sundays for religious reasons. Sunday shopping became a popular family pastime in Poland with the advent of the free market after the 1989 collapse of communism, but surveys published this week suggest that consumers have mixed feelings. The independent Kantar TNS pollsters found that 76 percent of respondents supported a compromise that would allow Sunday shopping, but also give retail workers two free weekends per month. However, the Warsaw-based CBOS agency found that 58 percent of respondents supported a blanket Sunday shopping ban, while just 37 percent were opposed. It also found that 52 percent of respondents said they shop on Sunday. Switzerland and Norway limit Sunday shopping, while Austria has a blanket ban. Up to now, stores in Poland have remained closed for 12 days a year for major national or religious holidays.

Poland adopts 'gradual ban' on Sunday shopping

Already hamstrung by the battle to compete with online rivals, Britain&#39;s major clothing retailers now risk a hit to sales and profits from the higher costs and plummeting consumer confidence that have followed the vote to leave the European Union. 
 
A month after that vote, clothing sellers are nursing big share price falls and contemplating the cost of the depreciation in the Pound versus their most important currency, the US Dollar. 
 
At the same time, consumer confidence has recorded one of the biggest drops in over two decades. With consumer spending accounting for three quarters of Britain&#39;s gross domestic product any drop would have huge implications for the economy. 
 
While a few retailers with big overseas earnings could benefit from the currency move, such as luxury brand Burberry, online fashion retailer ASOS and discount chain Primark, those that will struggle are likely to be British-focused and with already tight margins. 
 
&quot;It was already a tough market,&quot; Andy Street, managing director of John Lewis, Britain&#39;s biggest department store chain, said earlier this month, while Steve Rowe, CEO of Marks &amp; Spencer, the nation&#39;s biggest clothing retailer, described confidence as &quot;fragile&quot;. 
 
While steps by clothing retailers to protect themselves from volatility in foreign exchange rates through hedging will provide some breathing space on the currency issue, the hit to confidence is the more immediate threat, as Britons typically curtail clothes shopping in hard times. 
 
Market researcher Nielsen polled shoppers after the Brexit vote and found 41 per cent planned to change their spending habits to save on household expenses, with clothing and expensive grocery brands in their sights. 
 
In common with all British retailers, clothing sellers were already grappling with intense competition from online-only players and the cost inflation implications of the government-mandated minimum pay rate, the national living wage, as well as increased business rates. 
 
Official data today showed UK clothing sales were falling even before the referendum. Sales volumes in the three months to June were 5 per cent lower than a year earlier, the worst performance for any calendar quarter in 25 years, and in sharp contrast to a buoyant picture for most other categories of retail. 
 
Now clothing retailers also have to deal with a sharply depreciated Pound.&nbsp;Sterling has taken the brunt of market concern since the Brexit vote on June 23, falling to a 31-year low and trading below $1.28 on July 6 against $1.50 the day before the referendum. 
 
With the bulk of British clothing retailers&#39; goods sourced from Asian suppliers and paid for in Dollars, a weaker Pound has a major impact on their buying costs. 
 
Britain&#39;s biggest clothing retailers, including M&amp;S, Next and John Lewis, are hedged up to 18 months ahead, meaning that if Sterling stays depressed the main impact will not start to be felt until the second half of their 2017-18 financial year. 
 
Sportswear retailer Sports Direct is the notable exception, being unhedged for Sterling-Dollar for its 2016-17 year. Its share price is down 32 per cent since the vote. 
 
Clothing companies would normally be expected to hedge for the second half of 2017-18 and beyond, now and over the next few months.&nbsp;But with foreign currency markets volatile, the treasury departments of firms are reviewing their hedging policies. 
 
They face a dilemma, explained a senior banker with several major British retailers as clients, because as UK interest rates look set to be cut there is a risk Sterling could fall further.&nbsp;&quot;Now might not be the right time to do it, equally waiting might not be the right thing to do,&quot; he said. 
 
That unease was echoed by a person with knowledge of the situation at a FTSE 100 clothing retailer.&nbsp;&quot;You don&rsquo;t want to be making a decision in July to hedge for 18 months time, because nobody knows what&rsquo;s going to happen. You could put yourself in a worse position,&quot; said the person, adding that only the brave would start hedging now. 
 
Faced with higher sourcing costs one solution could be to pass those costs on to consumers through higher prices.&nbsp;However, in an already weak market shoppers will have little appetite for inflation, and in the case of M&amp;S, raising prices would run counter to Rowe&#39;s stated strategy of bringing them down to cure the firm&#39;s perceived uncompetitiveness. 
 
The average price of clothing has fallen by 15 per cent in the last 10 years, according to official UK data.&nbsp;The key for clothing retailers will be their ability to mitigate the cost increases they face. 
 
&quot;There are a number of things that we can do in terms of the sourcing side of things,&quot; said Helen Weir, M&amp;S&#39; chief finance officer, noting the firm imports 1 billion to 1.5 billion Pounds ($1.31-$1.97 billion) worth of goods each year in Dollars. 
 
Options include changing the mix of sourcing countries and further increasing the proportion of direct sourcing from factories, cutting out middlemen.&nbsp;Also there might be scope to re-negotiate better terms with suppliers as Asian currencies have depreciated against the Dollar. 
 
Bankers say more radical options would require a cultural shift at retailers.&nbsp;They could pursue &quot;dual pricing&quot;, where they negotiate part payment for supplies in different currencies from the Dollar, for example using the Chinese Renminbi. 
 
Retailers could also collaborate more on ordering, shipping and warehousing to seek economy of scale savings.&nbsp;But efficiencies might be more difficult to achieve than in previous years. 
 
&quot;Companies have already materially improved their gross margins through better buying and efficiencies on the supply side,&quot; said Ernesto Bisagno, senior analyst at ratings agency Moody&#39;s. 
 
Ultimately the clothing sellers with the biggest margins will be best able to weather the storm.&nbsp;Here, Next, Britain&#39;s most successful clothing retailer of the last decade, is the stand-out stock, with an operating margin for 2015-16 of 20.8 per cent, according to Reuters data. 
 
That dwarfs M&amp;S on 7.4 per cent, which is diluted by half of its business being in the lower-margin food sector, Debenhams on 5.8 per cent (for 2014-15), Sports Direct on 9.4 per cent and Primark on 11.9 per cent (for its most recent quarter). 
 
Led by Simon Wolfson, who was among the leading business supporters of Brexit, Next should be well prepared. With some foresight, he had warned in March that 2016 could be its toughest year since 2008. 
 
(Reuters)

Clothing retailers fear volatility in foreign exchange rates, and Britons typically buy less clothes in hard times

Already hamstrung by the battle to compete with online rivals, Britain's major clothing retailers now risk a hit to sales and profits from the higher costs and plummeting consumer confidence that have followed the vote to leave the European Union. A month after that vote, clothing sellers are nursing big share price falls and contemplating the cost of the depreciation in the Pound versus their most important currency, the US Dollar. At the same time, consumer confidence has recorded one of the biggest drops in over two decades. With consumer spending accounting for three quarters of Britain's gross domestic product any drop would have huge implications for the economy. While a few retailers with big overseas earnings could benefit from the currency move, such as luxury brand Burberry, online fashion retailer ASOS and discount chain Primark, those that will struggle are likely to be British-focused and with already tight margins. "It was already a tough market," Andy Street, managing director of John Lewis, Britain's biggest department store chain, said earlier this month, while Steve Rowe, CEO of Marks & Spencer, the nation's biggest clothing retailer, described confidence as "fragile". While steps by clothing retailers to protect themselves from volatility in foreign exchange rates through hedging will provide some breathing space on the currency issue, the hit to confidence is the more immediate threat, as Britons typically curtail clothes shopping in hard times. Market researcher Nielsen polled shoppers after the Brexit vote and found 41 per cent planned to change their spending habits to save on household expenses, with clothing and expensive grocery brands in their sights. In common with all British retailers, clothing sellers were already grappling with intense competition from online-only players and the cost inflation implications of the government-mandated minimum pay rate, the national living wage, as well as increased business rates. Official data today showed UK clothing sales were falling even before the referendum. Sales volumes in the three months to June were 5 per cent lower than a year earlier, the worst performance for any calendar quarter in 25 years, and in sharp contrast to a buoyant picture for most other categories of retail. Now clothing retailers also have to deal with a sharply depreciated Pound. Sterling has taken the brunt of market concern since the Brexit vote on June 23, falling to a 31-year low and trading below $1.28 on July 6 against $1.50 the day before the referendum. With the bulk of British clothing retailers' goods sourced from Asian suppliers and paid for in Dollars, a weaker Pound has a major impact on their buying costs. Britain's biggest clothing retailers, including M&S, Next and John Lewis, are hedged up to 18 months ahead, meaning that if Sterling stays depressed the main impact will not start to be felt until the second half of their 2017-18 financial year. Sportswear retailer Sports Direct is the notable exception, being unhedged for Sterling-Dollar for its 2016-17 year. Its share price is down 32 per cent since the vote. Clothing companies would normally be expected to hedge for the second half of 2017-18 and beyond, now and over the next few months. But with foreign currency markets volatile, the treasury departments of firms are reviewing their hedging policies. They face a dilemma, explained a senior banker with several major British retailers as clients, because as UK interest rates look set to be cut there is a risk Sterling could fall further. "Now might not be the right time to do it, equally waiting might not be the right thing to do," he said. That unease was echoed by a person with knowledge of the situation at a FTSE 100 clothing retailer. "You don’t want to be making a decision in July to hedge for 18 months time, because nobody knows what’s going to happen. You could put yourself in a worse position," said the person, adding that only the brave would start hedging now. Faced with higher sourcing costs one solution could be to pass those costs on to consumers through higher prices. However, in an already weak market shoppers will have little appetite for inflation, and in the case of M&S, raising prices would run counter to Rowe's stated strategy of bringing them down to cure the firm's perceived uncompetitiveness. The average price of clothing has fallen by 15 per cent in the last 10 years, according to official UK data. The key for clothing retailers will be their ability to mitigate the cost increases they face. "There are a number of things that we can do in terms of the sourcing side of things," said Helen Weir, M&S' chief finance officer, noting the firm imports 1 billion to 1.5 billion Pounds ($1.31-$1.97 billion) worth of goods each year in Dollars. Options include changing the mix of sourcing countries and further increasing the proportion of direct sourcing from factories, cutting out middlemen. Also there might be scope to re-negotiate better terms with suppliers as Asian currencies have depreciated against the Dollar. Bankers say more radical options would require a cultural shift at retailers. They could pursue "dual pricing", where they negotiate part payment for supplies in different currencies from the Dollar, for example using the Chinese Renminbi. Retailers could also collaborate more on ordering, shipping and warehousing to seek economy of scale savings. But efficiencies might be more difficult to achieve than in previous years. "Companies have already materially improved their gross margins through better buying and efficiencies on the supply side," said Ernesto Bisagno, senior analyst at ratings agency Moody's. Ultimately the clothing sellers with the biggest margins will be best able to weather the storm. Here, Next, Britain's most successful clothing retailer of the last decade, is the stand-out stock, with an operating margin for 2015-16 of 20.8 per cent, according to Reuters data. That dwarfs M&S on 7.4 per cent, which is diluted by half of its business being in the lower-margin food sector, Debenhams on 5.8 per cent (for 2014-15), Sports Direct on 9.4 per cent and Primark on 11.9 per cent (for its most recent quarter). Led by Simon Wolfson, who was among the leading business supporters of Brexit, Next should be well prepared. With some foresight, he had warned in March that 2016 could be its toughest year since 2008. (Reuters)

British clothing retailers face Brexit double whammy

E-commerce in India has been booming and online giants like Amazon are spending big bucks on the world&#39;s fastest growing major economy. Yet some investors are pouring money into retail mainstays of a bygone era &ndash; shopping malls. 
 
Private equity investors like Blackstone and Rothschild-backed Xander Group are looking for malls in India, betting that people will flock to stores as more foreign brands open and online retailers ease their aggressive discounting. 
 
Indian malls, which are evolving from ramshackle collections of stores to modern plazas complete with air conditioning and family entertainment centres, are seen as a gateway to brands that a growing middle class aspires to own. 
 
The rise of the mall in India, at a time when many in the United States are becoming debt-ridden white elephants, has been helped by a flurry of new regulations that are encouraging investors to take a fresh look at traditional retail. 
 
They include easing foreign investment rules for single-brand retailers, longer shopping hours and a new framework for establishing real estate investment trusts (REITs). 
 
&quot;Almost every retailer would like to be here, and as they come they need quality space,&quot; said Siddharth Yog, chairman of Xander, whose Virtuous Retail arm owns five million square feet of operational and under-development malls in India. 
 
Xander is looking to buy and build new malls in cities like Delhi, Mumbai and Hyderabad, said Yog, as the outlook for physical retail stores brightens in India. 
 
Online retailers under pressure 
 
Investors had long shied away from shopping malls in India, amid weak consumer spending and deep discounts by online retailers like Amazon and local rivals Flipkart and Snapdeal. 
 
Now, online business players are under pressure from investors to produce returns, and this, combined with government regulation to ease online discounts, is reducing their advantage. 
 
With consumer spending in India set to top $3.6 trillion by 2020, and brands like Ikea, H&amp;M, Aeropostale and GAP planning forays into a country where new rules allow shops to remain open 24 hours a day, private equity firms see strong potential. 
 
&quot;With the same mall space generating more footfalls and revenues ... it&#39;ll definitely make organised retail properties enticing for investors,&quot; said Anuj Puri, chairman and country head at real estate consultant, Jones Lang LaSalle (JLL), India. 
 
Puri expects mall valuations and yields from retail properties to rise and attract investor interest, especially as REITs offer them a clear exit path. 
 
&quot;There&#39;s definitely a revival in interest in shopping malls and that&#39;s more to do with improved outlook for returns from these investments on the back of a revival in economic growth,&quot; said a Mumbai-based industry banker. 
 
The banker added that funds like Blackstone, Brookfield and Canada Pension Plan Investment Board (CPPIB) were looking at the sector from a medium to long term return standpoint. 
 
Quality space scarce 
 
A major challenge for retailers is the lack of high quality malls to house incoming brands, partly because the economic slowdown of 2011-2012 forced debt-laden developers to revise or abandon projects. 
 
Consulting firm AT Kearney estimates that India has just one-tenth of the mall space of the US market, despite having a population four times larger.&nbsp;For investors, the dearth of malls and growing demand from retailers means faster rental growth and higher yields.&nbsp; 
 
Retail rents in some malls have risen by as much as 20 per cent over the past year, and shopping centre yields in India are at about 11 per cent compared with 4.9 per cent in Singapore and 4 per cent in London, according to JLL. 
 
This also means the race to buy assets could be frenetic, with only about 20 per cent, or 39 million square feet of existing malls, being investment-worthy.&nbsp;Thus far in 2016, investors have spent $397 million on just two deals to buy malls in India, said JLL, compared with negligible investment in recent years. 
 
Blackstone, which has invested $2.7 billion in Indian real estate, mainly office buildings, is now in advanced talks to buy one million square feet of retail space from Larsen &amp; Toubro in suburban Mumbai, two people familiar with the deal said.&nbsp;A Blackstone spokesman declined to comment. 
 
The surge in investment could revive India&#39;s sluggish real estate market and kick start projects, say developers.&nbsp;&quot;Money is fungible and developers can use it to invest in other projects or reduce borrowing in existing ones,&quot; said Sriram Khattar, head of Indian developer DLF Ltd&#39;s rental business. 
 
(Reuters)&nbsp;

Private firms are looking to buy up retail spaces, anticipating high rentals when more foreign brands open stores

E-commerce in India has been booming and online giants like Amazon are spending big bucks on the world's fastest growing major economy. Yet some investors are pouring money into retail mainstays of a bygone era – shopping malls. Private equity investors like Blackstone and Rothschild-backed Xander Group are looking for malls in India, betting that people will flock to stores as more foreign brands open and online retailers ease their aggressive discounting. Indian malls, which are evolving from ramshackle collections of stores to modern plazas complete with air conditioning and family entertainment centres, are seen as a gateway to brands that a growing middle class aspires to own. The rise of the mall in India, at a time when many in the United States are becoming debt-ridden white elephants, has been helped by a flurry of new regulations that are encouraging investors to take a fresh look at traditional retail. They include easing foreign investment rules for single-brand retailers, longer shopping hours and a new framework for establishing real estate investment trusts (REITs). "Almost every retailer would like to be here, and as they come they need quality space," said Siddharth Yog, chairman of Xander, whose Virtuous Retail arm owns five million square feet of operational and under-development malls in India. Xander is looking to buy and build new malls in cities like Delhi, Mumbai and Hyderabad, said Yog, as the outlook for physical retail stores brightens in India. Online retailers under pressure Investors had long shied away from shopping malls in India, amid weak consumer spending and deep discounts by online retailers like Amazon and local rivals Flipkart and Snapdeal. Now, online business players are under pressure from investors to produce returns, and this, combined with government regulation to ease online discounts, is reducing their advantage. With consumer spending in India set to top $3.6 trillion by 2020, and brands like Ikea, H&M, Aeropostale and GAP planning forays into a country where new rules allow shops to remain open 24 hours a day, private equity firms see strong potential. "With the same mall space generating more footfalls and revenues ... it'll definitely make organised retail properties enticing for investors," said Anuj Puri, chairman and country head at real estate consultant, Jones Lang LaSalle (JLL), India. Puri expects mall valuations and yields from retail properties to rise and attract investor interest, especially as REITs offer them a clear exit path. "There's definitely a revival in interest in shopping malls and that's more to do with improved outlook for returns from these investments on the back of a revival in economic growth," said a Mumbai-based industry banker. The banker added that funds like Blackstone, Brookfield and Canada Pension Plan Investment Board (CPPIB) were looking at the sector from a medium to long term return standpoint. Quality space scarce A major challenge for retailers is the lack of high quality malls to house incoming brands, partly because the economic slowdown of 2011-2012 forced debt-laden developers to revise or abandon projects. Consulting firm AT Kearney estimates that India has just one-tenth of the mall space of the US market, despite having a population four times larger. For investors, the dearth of malls and growing demand from retailers means faster rental growth and higher yields. Retail rents in some malls have risen by as much as 20 per cent over the past year, and shopping centre yields in India are at about 11 per cent compared with 4.9 per cent in Singapore and 4 per cent in London, according to JLL. This also means the race to buy assets could be frenetic, with only about 20 per cent, or 39 million square feet of existing malls, being investment-worthy. Thus far in 2016, investors have spent $397 million on just two deals to buy malls in India, said JLL, compared with negligible investment in recent years. Blackstone, which has invested $2.7 billion in Indian real estate, mainly office buildings, is now in advanced talks to buy one million square feet of retail space from Larsen & Toubro in suburban Mumbai, two people familiar with the deal said. A Blackstone spokesman declined to comment. The surge in investment could revive India's sluggish real estate market and kick start projects, say developers. "Money is fungible and developers can use it to invest in other projects or reduce borrowing in existing ones," said Sriram Khattar, head of Indian developer DLF Ltd's rental business. (Reuters)

In India, old-school shopping malls find a new lease of life

Mergers and acquisitions in the global consumer and retail sectors in 2016 are likely to be characterised by lower valuations for small firms and reasonable values for riskier assets, after a string of mega deals in 2015, a report shows.

Last year ended with $365 billion in transactions, the highest dollar value of deals in these sectors since 2008, said the report by consulting firm AT Kearney.

The report, titled &#39;Has the consumer-retail merger market lost its froth&#39;, was based on interviews with thirty six company executives globally and analysed historical data from over 1,000 transactions.

Among other&nbsp;trends, the report found renewed investment interest in the United States and other weste nrn markets by companies in China and Japan keen to expand outside their home markets.

The need for deals will be spurred by tighter margins and slowing growth but that will be offset by a drop in demand for high yield debt from private equity players. Higher interest rates for such debt will increase the cost of capital and hurt deal appetite, the report said.

Consolidation, however, will continue and is likely in the most mature categories like soda beverages, processed foods such as cereals and frozen foods.

Large Chinese companies with limited growth prospects domestically still have access to vast amounts of capital from state-owned banks and are interested in buying valuable assets, brands, and capabilities rather than building them.

Chinese investment in offshore M&amp;A was already at $106 billion by the end of the first quarter of 2016, just short of the total for all of 2015, the report said.

Buyers also remained bullish on India with sixty eight per cent of respondents expecting deal activity in the market to remain at current levels or increase, driven by lower oil prices and a broad push towards deregulation led by Prime Minister Narendra Modi.

The report, titled 'Has the consumer-retail merger market lost its froth' found renewed investment interest in the United States and other western markets by companies in China and Japan

Mergers and acquisitions in the global consumer and retail sectors in 2016 are likely to be characterised by lower valuations for small firms and reasonable values for riskier assets, after a string of mega deals in 2015, a report shows. Last year ended with $365 billion in transactions, the highest dollar value of deals in these sectors since 2008, said the report by consulting firm AT Kearney. The report, titled 'Has the consumer-retail merger market lost its froth', was based on interviews with thirty six company executives globally and analysed historical data from over 1,000 transactions. Among other trends, the report found renewed investment interest in the United States and other weste nrn markets by companies in China and Japan keen to expand outside their home markets. The need for deals will be spurred by tighter margins and slowing growth but that will be offset by a drop in demand for high yield debt from private equity players. Higher interest rates for such debt will increase the cost of capital and hurt deal appetite, the report said. Consolidation, however, will continue and is likely in the most mature categories like soda beverages, processed foods such as cereals and frozen foods. Large Chinese companies with limited growth prospects domestically still have access to vast amounts of capital from state-owned banks and are interested in buying valuable assets, brands, and capabilities rather than building them. Chinese investment in offshore M&A was already at $106 billion by the end of the first quarter of 2016, just short of the total for all of 2015, the report said. Buyers also remained bullish on India with sixty eight per cent of respondents expecting deal activity in the market to remain at current levels or increase, driven by lower oil prices and a broad push towards deregulation led by Prime Minister Narendra Modi.

Global retail and consumer sector deals less pricey in 2016: report

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