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ABFRL to downsize Forever 21 outlets
01 Jun '17
2 min read
Courtesy: Forever 21
Aditya Birla Fashion & Retail (ABFRL) has decided to downsize and rightsize the Indian franchisee outlets of US brand Forever 21 to make the lable profitable. ABFRL had acquired the retailing rights of Forever 21 in 2016 from Diana Retail, a wholly owned subsidiary of DLF Brands, through a slump sale of the business undertaking for $26 million.
ABFRL had entered into a franchisee agreement with Forever 21 for the online and offline channels for the Indian market.
"Our goal is to turn positive in Forever 21 next year, which is the first landmark we have set for the brand," Ashish Dikshit, business head at ABFRL, said during a conference call with investors after announcing the fourth-quarter results, according to a media report.
"It is going to come both through some of the levers on the margin side that we are playing, as well as the rapid expansion and the right business model that we are doing with the new stores that we are launching. So, growing the business rapidly and turning it positive is the first goal post for next year," Dikshit said.
Dikshit said ABFRL will open more economically viable Forever 21 stores. "Both in terms of size and rental, and clearly the newer stores that we are signing are far more economically viable and more profitable," he said.
There are 17 Forever 21 stores in the country, majority of which have been set up in the range of 15,000 square foot to 20,000 square foot area. ABFRL plans to roll out about 15 new 8,000 square foot to 12,000 square foot stores this fiscal, the reports said. (SV)
ABFRL had entered into a franchisee agreement with Forever 21 for the online and offline channels for the Indian market.
"Our goal is to turn positive in Forever 21 next year, which is the first landmark we have set for the brand," Ashish Dikshit, business head at ABFRL, said during a conference call with investors after announcing the fourth-quarter results, according to a media report.
"It is going to come both through some of the levers on the margin side that we are playing, as well as the rapid expansion and the right business model that we are doing with the new stores that we are launching. So, growing the business rapidly and turning it positive is the first goal post for next year," Dikshit said.
Dikshit said ABFRL will open more economically viable Forever 21 stores. "Both in terms of size and rental, and clearly the newer stores that we are signing are far more economically viable and more profitable," he said.
There are 17 Forever 21 stores in the country, majority of which have been set up in the range of 15,000 square foot to 20,000 square foot area. ABFRL plans to roll out about 15 new 8,000 square foot to 12,000 square foot stores this fiscal, the reports said. (SV)
Fibre2Fashion News Desk – India
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