Raymond, an Indian textile and apparel conglomerate, has announced some key strategies to revamp its business operations and minimise losses.
The company is considering to shut around 25 underperforming stores in the 2018 financial year. Furthermore, it will work on renovating 50 of the unprofitable stores.
The textile giant has already shuttered 12 stores in the first quarter and is expected to close 13 more by the year end due to dwindling sales.
However, the company introduced 32 new stores (45 per cent are franchised) in the first quarter to keep the stocks rolling. Currently, it has more than 1,000 retail stores that are franchise-based.
Raymond will further open around 150 stores this year as part of its plan to launch 1,500 outlets by 2020. Around Rs. 15 crores will be invested by the textile firm to set up new stores and renovate the existing ones in the time to come.
“The closing of loss-making stores to minimise losses of the company is a continuous process. The majority of new stores will be based on a franchise model,” reportedly said Sanjay Behl, Chief Executive Officer, Raymond.
Additionally, the company has started promoting its ColorPlus brand on a bigger scale to get it back on the profit making path.
Raymond expects that the aforementioned measures will result in better same-store sales for the company in the near future.
