Atul Daga
CFO of Aditya Birla Retail | CA | 47 years
The CFO is actively involved with the CEO of a retail chain in preparing business strategies and participating in overall business reviews. Apart from that, the CFO assists the top management in identifying risks, largely financial in nature and planning suitable strategies in that regard. We also have a comprehensive evaluation system with regard to setting up new stores; in terms of the catchment area and market potential, and expected ROIs.
We had earlier closed some shops in our distribution network and have leveraged those ‘experiences’ in our evaluation strategy. Also, I would like to highlight that loyalty programmes do help organised retail, in terms of getting a better understanding of consumers and their purchase behavior.
Subbu Subramaniam
CFO of Titan Industries | CA | 50+ years
The CFO’s role is gradually evolving to that of a business manager, with corporate strategy, business expansion and performance management as the key focus. Apart from that, handling investor relations is also the responsibility of CFOs, and more routine core functions like accounting and controls are delegated to teams lower down the hierarchy. We are also rolling out Goldratt’s Theory of constraints in our businesses, and expect it to optimise inventory levels across our divisions.
I would also like to highlight that while our e-retail segment in still in its infancy, but will soon be a significant contributor to our balance sheet over the medium term and we are geared up appropriately for this opportunity.
Pratap Swarup
CFO of Bestseller | Cost and Works Accountant | 40 years
In leading retail organisations, the role of a CFO is increasingly shifting toward setting up a commercial strategy to take advantage of the growth opportunities, as well as intensifying competition. In addition, CFOs are also actively involved in supporting the CEO in terms of the strategic growth plan for an organisation, and a holistic review of operations.
The Danish-based parent operates in India via brands like Jack & Jones, Only and Vero Moda, and is also present in 43 countries.
Sundar Raman
President -Finance at Lifestyle Stores, Landmark Group | B Sc and CA | 49 years
We have set up Open to Buy, an inventory management system and along with our various loyalty schemes we have been able to keep our overall costs under a tight check. We are also seeing some pick up in consumer spending and have forecast a sales growth of 30 per cent for the current financial year, broadly higher than that of earlier five years, along with a volume growth of 7-8 per cent.
I would also like to highlight that CFOs provide crucial support to various other departments in a retail organisation, including IT and real estate.
CFOs: The new Strategists
The retailing industry has increasingly become very competitive and the role of CFOs is not just limited merely to day-to-day accounting and managing working capital requirements, and allied areas. These tasks are largely completed and monitored, lower down the hierarchy.Instead, the CFO is expected to take a more holistic review of operations and it includes a complete review of an organisation’s supply chain, overall planning and expansion plans, jointly with the CEO or the board of directors.
And, with several retail stores restructuring or selling off unviable stores or business divisions, the role of the CFO has greatly enhanced, and he is expected to play a key role in the evolving strategy of an organisation, jointly with the top management. The CFO is also playing a key role in fund mobilisation and allied areas, and managing the investor relations role too.
Apart from financial matters, CFOs are increasingly working with other departments, like IT and real estate, to ensure the optimum utilisation of resources and expansion, as and when needed.
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