The Hindu Business Line : Future’s Central retail chain plans variable prices, products

Mumbai, May 19 Future Group-owned Central retail brand of stores will have a differentiated product and pricing strategy for each market it enters. According to Mr Vishnu Prasad, CEO, Central & Brand Factory, “Depending on the gross productivity of each city we would have products, prices and categories attuned to that city. A Central in Baroda will be different from the one in Surat and there would a difference in the kind of prices we charge in very city.”

Having launched its seventh Central in Mumbai recently, Pantaloon Retail is planning to invest Rs 200 crore in the Central format during the year. Said Mr Prasad, “We would be adding 8 lakh sq. ft. and doubling the number of Centrals from seven to 14 this year at an investment of Rs 200 crore.” The company has stores in Bangalore, Hyderabad, Pune and Vadodara.

Stocking nearly 500 brands including private labels from Pantaloon Retail, Central is a lifestyle store with the youth as its target audience. “The youth as category connects strongly to the Central format more than any other category,” said Mr Prasad. With its tagline ‘Shop, Eat, Celebrate’, Central has been catering to the youth with national and international brands such as Tommy Hilfiger, FCUK and Lacoste. “ Today apparel comprises 40 per cent of Central’s merchandise,” said Mr Prasad. Categories such as home, consumer electronics and stationery have also been added over the years and even Food Bazaar continues to form an integral part of the format with almost 12 per cent of its sales being contributed by it. Meanwhile Pantaloon retail’s private apparel labels comprise 20 per cent of the category with brands such as UMM, Bare and Ajile.

Launched in 2004, currently Central is the third fastest growing format for The Future Group after Big Bazaar and Food Bazaar. “Central is a division which has been growing at 100 per cent on a year-on-year basis,” said Mr Prasad. Targeting a turnover of Rs 1,300 crore this fiscal, the lifestyle format of Pantaloon Retail is planning to reach a turnover of Rs 3,500 crore by 2010.