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Purvita Chatterjee

Targeting the upper middle class, scouting for partners

Mumbai , April 7

Pantaloon Retail is entering the travel business by launching a travel desk service at its seamless mall - Central.

Mr Kishore Biyani, Managing Director, Pantaloon Retail, said, "There is a plan to start a travel desk at Central." With intentions of starting ticketing services for travel holidays, the retail chain is scouting for a partner to enter the business. Targeting customers visiting its Central mall, Pantaloon is targeting the upper middle class with its travel services, which would include hotel bookings as well.

Outsourcing

However, realising the fluctuating margins of the travel business, Pantaloon is considering the possibility of either entering the business by itself or outsourcing the services to a travel house.

Adds Mr Jaydeep Shetty, Chief-Central Relationship Management, Pantaloon Retail India, "Presently, we are exploring the possibility of getting into the business either by ourselves or through a tie up with a partner who has a national presence."

Apart from retailing apparel and accessories brands, Pantaloon is also extending Central into new areas such as music and book retailing under the name, Depot, as an in-store brand. Besides, it is also considering launching a mobile and gadget bar under its group company's brand - `Convergence' - to offer almost every electronic brand.

Besides, Central is also expected to have a new umbrella brand for its food courts business. Considering there are multiple restaurant brands such as Bombay Blue, Copper Chimney and Noodle Bar at its existing malls, there are plans to integrate all its foods brands under one single umbrella brand.

Name change

In fact, its existing food brand - Fuel Station at Hyderabad Central - is expected to get extended to the rest of its branches and at the same time possibly undergo a name change. Adds Mr Shetty, "We are looking at fortifying and changing the name of our food brand. A new umbrella brand to represent the food brand is being considered and we plan to bring all the food court brands under a single one with a master brand strategy."

At present, almost 20 per cent of Central's business comprises the foods business from the various restaurant brands, while the majority of the turnover is from apparel and accessories. Besides, cinemas and multiplexes also comprise a part of the business and have been leased out to players such as PVR and Inox.

Pantaloon launched its first Central in 2004 in Bangalore. Its revenue model is based on the concept of space utilisation - brands pay fixed charges based on the rental space occupied in addition to a certain percentage of monthly sales.

"The turnover of Central today is greater than that of the top few retailers put together,'' adds Mr Biyani.

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