A good Lifestyle helps apparel company close in on total sales of 2 rivals

Lifestyle

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MUMBAI: Sales at Lifestyle International, the company that runs an eponymous department chain in India, grew 12% in the year to March 2019 to Rs 8,467 crore, closing in on the combined sales of its immediate rivals Shoppers StopNSE -1.37 % (SSL) and Future Lifestyle.

According to financials sourced from Tofler, Lifestyle International is also the most profitable retail chain in the country within the apparel and lifestyle industry with a 12-month net profit of Rs 426 crore.

Lifestyle International, part of Dubai-based entrepreneur Micky Jagtiani’s Landmark Group, operates a department store chain, value format Max, and home furnishing store Home Centre. It attributed its robust growth to a host of factors including right distribution and value proposition.

“As a retailer, we would rather be the surest than fastest, and ensure that we open stores at the right location instead of just adding to outlet count,” said Lifestyle International’s managing director Vasanth Kumar.

“Also, Max helped in terms of affordable fashion, especially in smaller towns, while we kept Lifestyle merchandise relevant and trendy that appealed to younger consumers.”

The retail firm opened its first store in India in 1999 and has since expanded to 80 department stores and over 300 outlets of Max, a mid-priced fashion chain. Max’s smaller size has also helped Lifestyle International test tier II and III cities before opening its flagship format their first.

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Apart from established chains such as Central, Shoppers Stop and Westside, India has, over the past few years, attracted some of the world’s largest apparel brands, including H&M, Gap and Uniqlo, which are banking on young consumers increasingly embracing western-style clothing. Lifestyle, however, will grow the overall pie instead of eating into existing market shares, according to Kumar.

A recent Edelweiss report analysed retail companies on parameters including penetration, sales and profit per square feet and same store sales growth.

“We believe Future Lifestyle and Aditya Birla Fashion have ample potential for return on capital employed improvement, basis their growth plans and outlook. Shoppers Stop was at the bottom on multiple parameters,” the report said.

[“source=economictimes”]

Written by Loknath Das