Future Retail looks to open new distribution centres to save cost, ensure fast delivery

Future Retail is looking at opening new distribution centres to ensure that products reach its stores faster and help save on costs through greater efficiency in view of the implementation of Goods and Services Tax from July 1.

Rakesh Biyani, Joint Managing Director, Future Retail told PTI, “GST addresses issues of inefficiency, wastage and delays in supply chain."

Biyani said, "With the free movement of goods, no tax credit loss, we can plot at distribution centres as to where the consumption is and where we intend to build more stores so that we can bring in an efficient supply chain."

He said, "Ahead to GST implementation, we have upgraded our technology platforms, our supply chain is ready to do centralised distribution. We are now mapping out further distribution centres...to optimise our costs."

He further added, "GST is an opportunity for retail sector to save cost through efficiency routes. It is going to lead to price reduction, which in turn will lead to higher consumption."

Future Group has 2 distribution centres in the country in Nagpur, Maharashtra and Burdwan, West Bengal, for long lead time categories clothing and home products. It has multiple smaller distribution centres for suppling products such as food, grocery to its stores.