Lifestyle sees a spurt in sales growth

Lifestyle International, which owns the eponymous department

stores, apparel retailer Max and home furnishings and furniture seller Home Centre reported an increase in sales. As per Kabir Lumba, Managing Director, this year, the company reported a strong double-digit increase in same-store sales. Last year same-store sales had dropped to single digits due to increased prices.

Lumba says, their growth last year was below expectations because some new stores did not open as malls got delayed. But demand was good this year. Product mix improved with better presentation, aesthetics and sharper pricing. “We’ve introduced newer price points across price levels,” Lumba informs. As one of India’s largest retailers, it expects sales to grow 25-30 percent for the year from Rs 3,000 crores last year. “Same-store sales growth will also reduce from high double digit, it will come down to low double digit,” Lumba said.

After a slump in growth last year, retailers including Shoppers Stop and Future Retail have reported strong sales so far this year, mainly because of stable prices and strong demand during the traditional discount sale period. Lumba feels growth will surely moderate for Lifestyle and others from now on given the persistent weakness in the economy as well as the slump in the rupee, which would force retailers to increase product prices by 5-7 percent.

The Landmark Group-owned company plans to open 20 Max stores, 6-7 Lifestyle stores and 1-2 Home Centre stores this year. In future, a majority of the new stores will be for its Max brand. Lumba forecasts that within six years, Max, which is expected to report sales of Rs 1,100 crores this year, will be a bigger brand than Lifestyle. “The company has set a target of generating sales worth Rs 5,500 crores within five years from Rs 3,000 crores at present.