Alok Industries, India’s largest fully integrated textile company, is planning to close 45 non-profitable H&A retail outlets by next month.
After shutting down about 45 non-profitable stores by September, the company will keep a tab on the performance of its retail business under the ‘H&A’ banner, Alok’s Chief Financial Officer Sunil Khandewal said.
If the performance is found to be profitable, we will continue with the division, otherwise, we shall gradually wind it up, Mr. Khandewal added.
The H&A stores are value retail outlets, positioned as complete family stores for apparel, home textiles and accessories, offering quality textile products at affordable prices.
At present, there are 190 exclusive brand outlets (EBOs) and about the same number of shop-in-shops.
Alok Industries registered a 49 percent year-on-year dip in its net profit during the quarter ended June 30. Its net profit declined from Rs. 590 million during first quarter of last fiscal to Rs. 301 million during the same quarter this fiscal.
However, net sales of the company surged by 48 percent during April-June period to Rs. 24.227 billion, as against net sales of Rs. 16.382 billion during the corresponding period of last year.
Fibre2fashion News Desk - India