Future Group’s Brand Factory on retail expansion drive

Future Group’s discount format, Brand Factory, is looking to adding more stores, while readying to acquire businesses like southern chain Coupons, it took over a year ago. However, the company is not getting lured by the business prospects of online medium and would continue to operate as brick-and-mortar retailer.

While most of the discount chains have either shut shop or changed their business strategy to remain in the market, Brand Factory, moving ahead with its offline discount format, plans to add 10-12 stores every year to race ahead of the competition, while establishing itself as the leading discount retail brand. Other leading discount-led retail chains like Loot and Grab have already shut shop while others like Megamart from Arvind and Max by the Lifestyle Group have changed their offering to value format. The Brand Factory sells a season-old stock from its own retail formats as well as merchandise sourced from some of the brands directly.

Launched in 2006, Brand Factory keeps its costs under control by opening exclusive store away from the prominent city centres and malls. While it offers discounts across a host of brands, it is the group’s own brands and private labels which constitute a significant portion of its sales. It has also diversified into the non-apparel space with footwear and luggage. Brand Factory, with 41 stores, enjoys a sales turnover of Rs 1,000 crores.