Pantaloon Retail’s new strategy

Pantaloon Retail is all set to merge its home solutions business with itself to boost home

retailing business post merger. Currently, the business is run by Home Solutions Retail India Ltd (HSRIL) that comprises stores like e-Zone, Electronic Bazaar and Home Town. The merger would be activated in 6-8 weeks.

Pantaloon Retail has recorded revenues of around Rs 2,311 crores in the third quarter of March 2010. Around 18 per cent came from home solutions business. It is reported that Value retail accounts for 62 per cent of the overall Pantaloon revenues. Around 22 more e-zone stores are expected in the current fiscal along with 66 stores already into the operation, with an average size of 10,000 sq ft area per store.

Along with the achievement of the same store sales (SSS) growth of 45 per cent, the company is targeting the metros and the Tier I cities for expansion. Pantaloon’s home solution segment is on a growth boost with the last quarter growth of 30 per cent. The core source is electronic goods, which has taken sales growth to the next level. But post merger, the company is still tight-lipped on the new role and its strategies.