- Meenakshi Kumar |
Raymond, is on a rationalisation spree and is looking to shut around 25 loss-making stores while renovating 50 stores in FY18. This is being done to reduce losses. Overall, the company plans to invest Rs 15 crores in retail, opening new stores and renovation next quarter. While it plans to open 150 stores in FY18, the retailer has already shut 12 stores in Q1 and is likely to shut 13 more by year end. The company added 32 new stores in the first quarter, of which, 45 per cent are franchise. Meanwhile, Raymond completed renovation of eight stores. Currently, 15 stores are under renovation.
Raymond will further open around 150 stores this year as a part of its plan to launch 1,500 outlets by 2020. Around Rs 15 crores will be invested by the textile company to set up new stores and renovate the existing ones in the time to come.
Sanjay Behl Chief Executive Officer, Raymond reportedly stated that the closing of loss-making stores to minimise losses of the company is a continuous process. The majority of new stores will be based on a franchise model. Additionally, the company has started promoting its ColorPlus brand on a bigger scale to get it back on the profit making path. Raymond expects that the aforementioned measures will result in better same-store sales for the company in the near future.