Saudi Arabia has announced a major overhaul of its retail regulations, banning small grocery stores/convenience stores, commonly referred to as baqalas, from selling a wide range of everyday items, including tobacco products, fresh produce, and meat. The decision, issued by the Minister of Municipalities and Housing, Majed Al-Hogail, was confirmed in a report by Saudi Gazette and takes immediate effect, although existing stores will be given a six-month grace period to comply.

The new regulations affect kiosks, grocery stores, and mini markets, which are now prohibited from selling:

These items are now restricted to larger retail outlets, such as supply stores (supermarkets) and hypermarkets, with an additional licensing requirement for the sale of meat.

Where These Products Can Now Be Sold

While baqalas and smaller outlets face tighter restrictions, the government has clarified where these goods can still be legally purchased:

This approach, according to the Ministry, aims to aimed at reorganising the retail sector, streamline retail practices, improve health standards, and ensure a better classification of store types based on size and services.

New Space Requirements for Retailers

In addition to the ban on certain items, the amended regulations also establish minimum floor space requirements for different types of stores:

These space requirements are intended to standardize retail environments and further distinguish between small, mid-sized, and large retail businesses in terms of the services and range of products they are allowed to offer.

The government has emphasized that although the rules are immediately enforceable, baqalas and other affected establishments will have up to six months to adjust their operations to become compliant. This transitional period is aimed at reducing the economic burden on small retailers and allowing for a smoother enforcement process.

News Credits- msn

Smart logistics provider Cainiao has launched an express delivery service in six Gulf Cooperation Council (GCC) countries, enabling e-commerce platforms to fulfill their logistics needs across the countries in as little as three days.

The service is available in the United Arab Emirates, Oman, Bahrain, Qatar, Kuwait and Saudi Arabia, offering a range of air and ground shipping options to meet the needs of cross-border and local e-commerce platforms.

According to Cainiao, its air freight service ensures delivery between nations in as little as three days, while cost-effective overland shipping reaches any city in six to eight days.

“Building a global smart parcel network is central to Cainiao’s core strategy, and the Middle East is a key region within our global footprint,” said William Xiong, senior vice president and general manager of cross-border at Cainiao Group. “Setting up this cross-border network across the six GCC countries is a meaningful step forward in how we serve the region.

“Looking ahead, we are committed to expanding our global network, listening to local needs and working closely with our partners to offer even better and more efficient cross-border logistics solutions.”

Author Credits- HAZEL KING
Parcel and postal technology INTERNATIONAL

DHL eCommerce UK has announced it is to offer an international returns solution for shoppers through an extended partnership with returns management specialist ZigZag.

According to the company, the expanded partnership will simplify international returns for consumers while helping retailers recoup costs from export duties paid on returned goods. Consumers will be able to register returns through an online portal that can identify convenient local drop-off points.

Stuart Hill, CEO, DHL eCommerce UK, commented, “International e-commerce continues to grow at a rapid pace but the retail industry remains under pressure. As more retailers look to capitalize on the opportunity for sales overseas, the lost value of returns on international baskets is having a direct impact on profitability, particularly when it comes to high-value items.

“Through our partnership with ZigZag, we can help them seize the opportunity for international growth. All while ensuring a seamless and convenient customer experience for valued customers.”

Matthew Jacques, global partnerships director, ZigZag, added, “It is vital for retailers all over the world to be looking at ways to save money, now more than ever. Our partnership with DHL provides the perfect opportunity for retailers to reduce the cost of their domestic and international carriage.

“We are thrilled to be working so closely with DHL to solve this complex issue and allow retailers to make a cost saving during a challenging international retail landscape.”

Author Credits- HAZEL KING
Parcel and postal technology INTERNATIONAL

ZURICH  – The Swiss competition authority said on Tuesday it has opened an investigation into Beiersdorf over whether the German consumer goods group has relative market power over Swiss retailer Migros in a dispute about the cost of its Nivea products.

In a statement, the authority known as COMCO said Beiersdorf (BEIG.DE) is allegedly refusing to allow Migros to purchase Nivea brand products under the same conditions as abroad.

In the investigation, COMCO is analysing whether Beiersdorf has relative market power compared to Migros.

“If so, it will investigate whether Beiersdorf is abusing this position by charging Migros higher prices for the same Nivea products than comparable retailers abroad,” it said.

Beiersdorf said it could not comprehend the allegations and would cooperate with COMCO to help clarify the matter.

Compliance with regulations and in particular antitrust law had top priority for Beiersdorf, the firm said in a statement.

News Credits- Reuters

STOCKHOLM  – H&M-backed textile recycling firm Syre will provide recycled polyester to U.S. retailers Gap (GAP.N) and Target (TGT.N), it said on Tuesday, as demand for sustainable fashion grows.

Several startups are developing technologies to recycle discarded clothes into new textiles amid increasing consumer demand, and with retailers keen to burnish their sustainability credentials and meet tougher regulations.

Syre, which was co-founded by fast-fashion retailer H&M and investment group Vargas, plans to produce more than 3 million metric tons of polyester in 2032 by recycling used garments. It entered a long term agreement with H&M last year worth a total of $600 million over seven years.

Gap wanted to utilise 10,000 tons per year of its polyester chip, while Target would incorporate recycled polyester into a “selection” of the company’s products, Syre said in a statement.

“We will co-develop circular polyester together and it will lead to a commercial agreement over time,” Syre CEO Dennis Nobelius told Reuters. He did not disclose the potential monetary value of any agreement or a timeframe.

Syre produces a polyester chip which then needs to be spun into a thread by its partner companies.

“This partnership enables us to accelerate our progress toward realizing a more circular fashion industry,” Gap’s Vice President of Global Sustainability Dan Fibiger said in the joint statement.

Last year, Syre raised $100 million in a funding round to build a “blueprint” factory in the U.S. state of North Carolina and prepare for two more plants, including one in Vietnam.

The U.S. factory is expected to have a capacity of up to 10,000 tons of recycled polyester annually and become operational during 2026, while Syre aims to start construction on the Vietnam plant in 2027 to produce between 150,000 and 250,000 tons polyester, Nobelius said.

Sweden-based sportswear company Houdini has also committed to source 50% of its polyester from Syre for a three-year period, Syre said.

Author Credits- Greta Rosen Fondahn
Reuters

Dutch investor Prosus is betting big on India as it builds the number one lifestyle ecommerce company, including in Europe and Latin America. This bet is being built on the ecosystem it has created in every region.

This lifestyle ecommerce company in India is built on the ecosystem powered by food services (Swiggy), fintech (PayU), commerce (Meesho) and experiences (Urban).

“We are sure that focusing on a few ecosystems and in a few regions, the synergies generate a lot of value to our company in terms of cross-sell and sharing best practices,” said Fabricio Bloisi, chief executive officer, in an analyst call.

The investor in FY25 clocked revenues of $6.2 billion, a 21 per cent consolidated increase from $5.5 billion in FY24.

The company’s aEBIT (adjusted earnings before interest and tax) stood at $179 million in FY25 as compared to a negative aEBIT of $118 million in the previous year.

More than 50 per cent of its India investment has given a healthy internal rate of return (IRR) for the company.

PayU

PayU India has reorganised its payments business while tightening underwriting after losses in its consumer loan portfolio, according to Prosus.

Prosus added it aimed to restore the fintech’s profitability after it recorded a trading loss or a negative aEBIT despite an improvement in revenue and margins.

In a report published Monday, Prosus said, fintech firm PayU India’s payments business broke even in the second half of FY25, with a revenue growth rate of 12 per cent to $498 million in 2024-25.

PayU Finance, the credit arm of the company, saw its revenue grow to $171 million, taking the firm’s consolidated revenue for FY25 to $669 million.

“To accelerate business growth, we have reorganised the payments business with dedicated teams focusing on key account management, acquiring new customers in existing segments as well as forging new partnerships,” Prosus said.

Food delivery

Prosus noted the growth that Swiggy has brought in its quick commerce arm, Instamart, had come at the cost of profitability challenges due to expansion in its network and intense competition.

“Swiggy’s Q125 results showcased a year-on-year GOV growth of approximately 40 per cent led by a food delivery GOV increase of 18 per cent year on year, and quick commerce (Instamart) GOV growth of 101 per cent year on year, with 316 new dark stores added in the quarter,” it said in a report.

Swiggy was aiming contribution breakeven in the quick commerce segment in the next three to five quarters, it noted.

It added the food-delivery company’s adjusted Ebitda (earnings before interest, tax, depreciation and amortisation) loss reduced to $182 million during January-December 2024 from $261 million in the same period the previous year.

Author Credits- Ajinkya Kawale
Business Standard

Aditya Birla Group expects four of its lifestyle brands – Louis Philippe, Van Heusen, Allen Solly, and Peter England – to achieve billion-dollar status within a decade, benefiting from rising consumer interest in fashion, and higher discretionary spending, among other factors.

While international lifestyle brands such as Louis Vuitton, Nike, Chanel, and Adidas have achieved multi-billion-dollar status, Indian fashion brands are yet to reach the billion-dollar milestone. Currently, Louis Philippe and Van Heusen each generate sales over Rs 2,000 crore, with Allen Solly and Peter England exceeding Rs 1,000 crore each. For comparison, the Raymond brand, owned by Gautam Singhania, generates sales exceeding Rs 3,000 crore.

Aditya Birla Group ventured into fashion and lifestyle in 1999 by purchasing the four brands from European company Coats. Since then, the apparel business has seen several structural reorganisations. Initially operating as a division of Indian Rayon and Industries, the four brands were subsequently transferred to Aditya Birla Fashion and Retail. Currently, they operate under Aditya Birla Lifestyle Brands, which commenced trading on the stock exchanges on Monday. Its shares closed at Rs 159 on the BSE, showing a decline of nearly 5%.

Group chairman Kumar Mangalam Birla said, “Our ambition is clear: to build India’s first portfolio of billion-dollar brands in fashion and lifestyle.” The quartet of brands, which began their journey in menswear, have since diversified their product range to include womenswear, footwear, bags and fashion accessories. The Indian fashion industry is projected to expand to $170 billion by 2030, representing a 1.5-fold increase from current figures.

According to the group, this expansion, driven by consumers shifting from unbranded to branded products, presents an “incredible opportunity” for the brands to grow substantially.

Author Credits- Reeba Zachariah
msn