Future Retail is planning to open new distribution centres in the country to ensure products reach stores fast, saving on costs as the Goods and Services Tax gets implemented from July 1, 2017. The company sees GST as an opportunity for retail sector to cut costs using efficient routes, thereby leading to price reduction and higher consumption.
GST addresses issues of inefficiency, wastage and delays in supply chain, Future Retail joint managing director Rakesh Biyani told a news agency on the sidelines of CII-India Retail Conclave 2017.
"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 was quoted as saying.
"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 said.
Future Group has two 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 supplying products such as food and grocery.
Property consultant JLL India, the official knowledge partner for the retail conclave, released its new report titled 'India Retail: Change is the New Constant'. The report highlights the latest trends and approaches driving the sector globally, and examines the new regulations and policies which are reshaping the way retail business is done in the country. (SV)
Fibre2Fashion News Desk – India