Companies

Shutting unprofitable stores across large and small formats: Future Retail

Our Bureau Mumbai | Updated on December 12, 2019 Published on December 12, 2019

In a bid to focus on delivering high cash flows and productivity, Future Retail Ltd is seeking more revenue per square feet through sustained, healthy same store sales growth (SSSG), shutting unprofitable stores across large and small formats, and gross margin expansion through better markdown management and product mix, among others.

The Kishore Biyani promoted retail company, in a presentation said, significant cost-saving initiatives are in progress across store rental renegotiations, store opex reduction, lower employee costs, leaner & targeted marketing spends, process automation at corporate headquarters.

As part of its immediate execution targets, the company said: "Shutting down unprofitable stores across small format – already in progress....Driving SSSG growth through existing store network...Gross margin expansion in large format through better pricing/markdown management."

Future Retail, which has key brands such as BigBazaar, fbb, and WH Smith, said it will shut all unprofitable stores and stores outside delivery network; optimize remaining network with no net space addition; and focus on growth in core markets (Punjab, NCR) to deliver sustained healthy SSSG.

The retail company has 293 BigBazaar stores (large stores), 95 fbb outlets (large stores), and 1,147 small stores (easyday Club, Heritage fresh, WH Smith).

Published on December 12, 2019
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