MARKET WATCH
Retailers Face Tight
Margins
Mr Rahul Mehta Bids
Farewell to Shri Ajay
Tamta
Mr Rahul Mehta, President, CMAI, presented a
Bouquet to Shri Ajay Tamta, outgoing Minister
of State for Textiles, at a function arranged by
the Ministry of Textiles, Government of India,
New Delhi, in order to bid him farewell.
Smt. Smriti Zubin Irani, Hon. Minister of
Textiles, presided over the function, which was
attended by Industry Leaders and
Ministry Officials.
Shri Tamta was an extremely popular Minister,
who was always available to the Industry with
his Guidance, Support, and down-to-earth
approach to the resolution of Issues.
EBITDA margins have been tight for retailers
in 2018–19. Future Lifestyle Fashion’s EBITDA
margins shrank to 8.44 per cent from 9.04 per
cent while Trent’s margin shrank to 5.04 per cent
from 5.06 per cent a year ago. Shoppers Stop saw
its EBITDA margins improve to 7.4 per cent from
6.06 per cent in the same period thanks to big
savings in purchasing cost. However, higher taxes
pulled the profit down by 44 per cent.
Trent’s expansion strategy in select markets has
been paying off. Revenue in the March quarter was
up by 26.4 per cent year on year. Revenue growth
has been the highest in the past four quarters.
Also, same-store sales growth at Westside has
been a robust nine per cent. Overall, stand-alone
margins have declined by 0.72 per cent from
a year ago, owing to some less margin-friendly
formats such as Zudio.
Future Lifestyle’s brand strategy helped the
company clock a decent sales growth. Same-store
sales growth at Central, Brand Factory, and Future
Lifestyle Fashion stores were seven per cent,13
per cent and nine per cent for the March quarter.
Five more Brand Factory stores were opened in
the fourth quarter, aiding revenue growth. Future
Lifestyle Fashion continues to rationalise its
brands’ store network.
Max Fashion to Enter 20 New Markets
Max Fashion, the leading fashion brand from the house of Landmark Group, plans to enter 20 new markets during the
financial year 2019–20. It is currently present in around 280 stores in India.
The brand is also betting big on the kids’ category to drive its growth in the Indian market. It recently collaborated with
Disney’s Avengers: End Game for its annual kids festival in India.
This is one of the strongest associations of Max Fashions with Disney. Every year, the brand engages with over three
lakh kids across India during this season.
Max Fashion also plans to organise a 45-day-long campaign for children during the festival in India. It expects this
association to drive in big footfall to all its stores.
24
I APPAREL I
June 2019