Future Group revamps Central’s store-model

Along with Big Bazaar, Future Group is also revamping the

company’s revenue generating model – Central. Competing against retailers like Shoppers Stop and Lifestyle. Central is donning the look of a departmental store, with special focus on private labels. With a new positioning tagline created by Lowe Lintas, Central will now be in smaller boutique-like formats along with its existing large-sized stores.

The first small format store has already been launched at Orion Mall in Bangalore where it currently has three large-sized stores. And the group plans to open at least four to five new Central stores this year while expanding in cities such as Mumbai. Currently, Central is also running the last few days of its ‘Happiness’ sale offering discounts up to 61 per cent.

The aim is to offer fashion at affordable rates. Today, the largest selling categories in Central range from men’s formal wear brands such as Arrow and Van Heusen to its own private labels such as John Miller and Rig. Going forward, the relatively less expensive apparel private labels of the Future Group will also be a part of Central’s product portfolio. Private labels such as Annabelle, Bare Denim and John Miller already form a part of Central, comprising 20 per cent of sales.

After selling majority stake in Pantaloon Retail to the Aditya Birla Group and managing a private placement with Bennett, Coleman & Company (BCCL), and also getting private equity giant Warburg Pincus to acquire a majority stake in Future Capital Holdings (FCH), Future Group’s Kishore Biyani has been able to raise nearly Rs 2,500 crores in the last couple of months. Further, with Warburg Pincus taking over the Rs 3,800-crores debt of FCH, nearly Rs 6,000 crores in debt has been wiped off Biyani’s balance sheet.