A lot of action has been happening in the retail front this year leading some of the big retailers to see a whopping jump in their profit sheets. While some have raked in profits, losses have also been hampering business. An overview of how retailers have
The Grocery segment has performed well in this quarter ended March 2015, with the biggest net profit being scored by the Kishore Biyani-led Future Group. It has seen a five-time jump in standalone profits recording a profit of Rs Rs.10.31 crore in the quarter ended March. Its total income from operations rose to 18% and net sales went up by 19 per cent at Rs 2,740 crore in fourth quarter of 2014-15.
Its standalone business includes Big Bazaar, Food Bazaar, Food Hall, fbb, Home Town and eZone. The company increased operational space under Big Bazaar from 7.82 million sq ft to 8.68 million sq ft, adding 32 new stores, thus taking the total number of stores to 196. Its Food Bazaar stores count decreased to 14 from 24 a year ago while FBB (Fashion at Big Bazaar) built up to 52 stores from 30 a year ago. Recently in May, the merger announcement by Future Group of retail business of Future Retail and Bharti Retail will pave the way for future retail actions with the company’s plan to create a national footprint of over 570 retail stores in multiple formats across 185 cities over 12.9 million square feet.
Same Store Sales Growth (In Financial year 2015)
Big Bazaar - 10.2%
Home Town & eZone-9.1%
Same Store Sales Growth (In Q4)
Home Town & eZone-16%
In the segment of Apparel & Fashion, Spencer’s Retail, a subsidiary of CESC Ltd, has reported a net loss of Rs 114 crore for 2014-15 fiscal. In the last fiscal, its net loss was Rs 111 crore. CESC chairman Sanjiv Goenka puts it down to the heavy discounts by a few eCommerce portals which affected its business. Metro cities like Mumbai and Bengaluru were affected more and the most hit segments were garments and apparels. But despite this, the company’s sales expanded and a higher revenue of Rs 1,688 crore was recorded as against a revenue of Rs 1,474 crore in 2013-14. The sales per square feet were at Rs 1,380 against Rs 1,306 in 2013-14.
While for another retailer in the same segment, addition in the number of stores and improvement in its sales have led Shoppers Stop Ltd, promoted by K Raheja Corp. Group, to amass 27% increase in Q4 profit. . Its net profit stands at Rs 10.3 crore in the fourth quarter. Its gross retail turnover has climbed 9% to Rs 907.2 crore this year ending March 31 from the previous year. The group operates stores such as Shoppers Stop, HomeStop, HyperCity and Crossword.
Managing Director Govind Shrikhande pins the satisfactory results to ‘internal operating efficiencies’. The stores that performed well were Shoppers Stop and HyperCity too showed a marked improvement over last year. New initiatives that happened in this quarter were signing on a new technology platform for its e-tailing programme. Also, the Group added on its store count, one store in each category- MAC store, Bobbi Brown store, Crossword store and HyperCity express store in this quarter.
In the FMCG segment, ITC reported flat growth in overall revenues for the quarter ended March on account of the increased taxation on cigarettes, which the company passed on to smokers. As a result, the sale of cigarette volumes has contracted. A bleak growth has been seen at at 35.3 per cent, the operating margin increased by 27 bps and operating profit rose by just over 1 per cent –this is the company's worst quarterly performance in the past six years.
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