Home / Knowledge / News / Apparel/Garments / 'Best time to contemplate opening new retail outlets' – Experts
'Best time to contemplate opening new retail outlets' – Experts
30
Mar '09
The Indian clothing retail sector was flying high in the air, with every retailer worth his salt, announcing grandiose plans on store expansions. But the unveiling of the economic crisis, has brought these plans to a screeching halt and are now re-visiting their expansion plans.

Each and every retailer is contemplating strategies to lure the Indian consumer who has dug his/her hands deep in to their pockets. From amongst the main strategies adopted by the retailers is luring the elusive customers by offering hefty discounts.

But is the consumer biting the bait is the million dollar question?.

Many other apparel retailers are either shutting down stores, which they term as unproductive and are not able to re-negotiate rentals or are outright downsizing staff. These stores were opened when real estate rentals were at their peak and accounted for 30-40 percent of expenses.

The only retailer who claims to not having been affected is the person who initiated the retail revolution in India. According to sources, Kishore Biyani in foresight had already started tightening belts and started cost cutting exercises way back in the first few months of 2008.

Reliance Retail, which has nearly 900 outlets across many formats and is the second largest retailer by floor space after the Futures Group has winded up a few stores. It has also reduced the store size of its hypermarkets by half.

But at the same time industry experts aver that this is the right time to contemplate opening new store since rentals have nose dived to new lows and which can be further negotiated and once the recessionary trends get over, it would mean higher operating margin for these outlets.

Fibre2fashion News Desk - India


Must ReadView All

Textiles | On 26th Jun 2017

US initiates probe into PSF imported from 5 nations

The department of commerce of the US has initiated investigations for ...

Textiles | On 26th Jun 2017

USTR announces AGOA review for Rwanda, Tanzania & Uganda

The office of the US trade representative (USTR) has announced the...

Textiles | On 26th Jun 2017

Braskem invests in polypropylene production facility in US

The Board of Directors of Braskem, one of the largest producer of...

Interviews View All

Spokesperson
Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

C. Dhandayuthapani
Mag Solvics Pvt. Ltd

ITME 2016 exploited our full strength like never before

DK Sharma
Velocity Apparelz

We constantly communicate with employees at all levels

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
July 2017

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search