Who is the King of retail business? | How Big Bazar group's condition deteriorated?

 

Who is the King of retail business all over the world?

You don't have to try anything new to be successful. You just have to do things in a new way. Something similar was done by Samuel Walton, born in Oklahoma-Wharton, USA. Those who changed the face of the retail market wanted to start their own business from the very beginning. His wish was also fulfilled in 1962. At the age of 44, he opened his first retail market in America, which was named Walmart.

Walmart generated an income of $ 9.75 lakh in 1962. The same income was earned per minute in 2022. Let us know how this happened. Walton, who reached this point, spent his childhood in poverty. Sometimes farming and sometimes selling milk. From selling newspapers to salesmen, he also had to do jobs.

Walmart suffered losses early in the business because Samuel Walton had rented out the store and sold goods at a meager price. But later he started taking goods cheaply by making direct contact with many companies. This led to both the sale and profit of their goods. In just five years, Walton opened 24 department stores in a single city. He was starting to understand the business now.

The fund was to buy cheap goods directly from the company. Sell ​​in the market at least margin from above. Seeing this formula, Walmart became a worldwide phenomenon. Today Walmart has become the only private company with 11,700 stores across the countries with 23 lakh employees. In 1972, Walmart became a multinational retail company listed on the New York Stock Exchange.

By that time Walmart was the largest retail company in the world and the largest retailer in America. Let us tell you that Walmart came to India in 2006. He tried to enter the retail market with Bharti Enterprises, but he was not allowed to do so. Now he runs stores selling wholesale goods with traders in many cities.

Walmart once held a 77% stake in the well-known Indian commerce company Flipkart, after which Flipkart took its full name after Samuel Walton died of blood cancer in 1992, with the Walter family owning the company. Even today 50% stake in this company is held by the Walton family.

How Big Bazar group's condition deteriorated?

How time doesn't always stay the same. The wheel of time spins and when does your time change. No one knows and many times this will be seen around you. Many famous and big companies have been seen going from good to wrong and bad to good times. A new name of Future Group has been added to this list.

The financial condition of this group, which is burdened by the debt of Future Group, owner of the Big Bazaar brand, has reached such a bad condition that not one or two but three companies of the group have defaulted on payment of crores of rupees. According to the news, the group's Future Enterprises, Future Consumer, and Future Lifestyle fashions companies have not been able to pay their group of taxpayers with a one-time payment solution i.e. one-time resolution plan.

Giving information, Future Lifestyle Fashions said that the principal amount of ₹ 335.08 crores has not been paid. The last date to repay it was June 30, 2022, the same includes the payment of term loan, working capital term loan, and purchase bill of crores to the company. However, the company has said that the interest on this loan has been paid. Let us tell you that this group company runs stores like Central and Brand Factory.

Simultaneously, Future Enterprises Limited Company has not been able to repay the principal amount of non-convertible debentures for the group. This payment default is ₹126.13 crore. Simultaneously, Future Consumer has also defaulted payment of ₹ 17.2 crores. Together, the three companies have defaulted payments amounting to around ₹448 crores.

Let us tell you that these three companies of Future Group were part of the Future Reliance deal. In this company, Reliance Group was going to get ownership of a total of 19 companies of Future Group. These included a big retail brands like Big Bazaar. All these companies were in the retail, wholesale, logistics, and warehousing segments.

Reliance Industries took over the responsibility of Future Retail's operations. According to a report in news agency PTI, Mukesh Ambani-led Reliance Retail had also offered job offers to employees of the Kishor Biyani-led future group. The development comes at a time when Future Group was fighting a legal battle with the public over the sale of its business to Reliance Industries.

Presently, Reliance Retail has started taking possession of those premises of Future Retail. Where a group led by Kishore Biyani was operating stores like Big Bazaar. Let us tell you that Reliance Retail started converting stores like Big Bazaar into its brand store.

This retail has offered to bring employees of Future Retail Stores on the job and payroll of Reliance Retail, in which Reliance Retail will hire 30,000 store staff. Following the deal between Reliance Retail and Future Group, several premises owners approached Reliance Industries as Future Retail was unable to pay rent to these premises owners. Wherever possible thereafter. Reliance had signed leases with these premises owners.

Subsequently, the premises were given on sub-lease by Reliance Retail to Future Retail. The move was aimed at continuing the business. While the rest of the stores will be operated by Future Retail Limited. This will reduce the operating loss of Future Retail Ltd. However, one more thing has come out in the report that Reliance Retail will now use only such premises of Future Retail which are commercially profitable.

Future and Reliance had a deal in August 2020, but the fight reached the Supreme Court after Amazon raised a legal dispute. Finally, in April 2021, Reliance Industries announced that this deal could no longer happen. Today, Future Group is in huge loss due to non-dealing with Reliance Industries, and three of its companies have defaulted payment of ₹ 448 crore.

In such a situation, when and how the company was able to recover from this profit crisis, only time will tell. If you liked the information given in this article then please comment on our site www.tradeipohub.co.in. Thanks for reading.