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My View On Future of Future Group


The present scenario is tough for the retail sector. The future group engaged in retail business under the brands for all categories of public including Pantaloons , Big Bazaar and Food Bazaar is not an exception.

The consumers just do not seem to be in any mood to buy. Ignoring the massive sales and discounts announced by the Pantaloon group, which are also includes Big Bazaar and Food Bazaar; consumers seem to have given it all the thumbs down. People are buying less and surely, with uncertainty all over, the mood steers towards saving and being discreet in where they spend their monies.

In December, Big Bazaar, food Bazaar reported a 4% fall in sales, Pantaloon sales fell 14% and its home retail sales was down 10%. Its fashion, food and general merchandise have registered a good growth in same-store sales but the fall in categories like mobile handsets, electronics and furniture have pulled down the overall sales. Sales in the lifestyle segment have taken a hit because some high-value international brands sold, like Etaam and Lee Cooper, from the stores did not do well.

Kishore Biyani refuses to accept that the margins will be under pressure as he justifies saying that his private labels are doing well and sales would go up across all segments, by around 19% in January. Right now expansions are on hold but once again, Biyani is confident that it will be able to add 15 Big Bazaars, 5 Centrals, 3 Home Towns, 10 E-zones, 1 Ethnicity and 4 Pantaloon stores by July 09’. Once again, expansions are on hold not because the group has a crunch but more due to the fact that malls are deferring openings and slower construction of malls due to the liquidity crisis faced by the developers. The market did not buy this logic and the stock dipped yesterday by around 9% and touched a new low at Rs.170.15.