Arvind completes Unlimited restructuring, to exit four brands lacking growth potential
today Aug 14, 2019
Arvind Fashions has completed the restructuring of its Unlimited stores and has decided to exit four loss-making brands, as the business focuses on profitability in a challenging market.
Arvind has now completed its restructure of its brick-and-mortar Unlimited stores, the business’ director, Kulin Lalbhai, told ET Now in an interview. Arvind had planned shut down a number of stores in North India at the end of last month as the stores had failed to match the performance of those in the South.
“As far as the unlimited restructuring is concerned, it is already complete,” Lalbhai told ET Now. “There are some overflow stores in Q2, but that is marginal. I would say the unlimited stores restructuring in that sense is complete.”
As the business focuses on profitability, it has also decided to completely exit four fashion brands that have proved loss making, although Lalbhai did not divulge which brands these are.
“We are exiting four brands where we did not see a huge growth potential in times to come,” said Lalbhai. “So that is a one-time cost and a one-time exit for the company. We are excited about the remaining portfolio and committed to it and now that we have freed up resources, we will be able to put those resources behind these exciting opportunities like Sephora, Gap, and inner wear, which is growing rapidly.”
Lalbhai said that, as the market is currently quite weak, it is the business’ established brands such as Tommy Hilfiger, US Polo, Calvin Klein, and Flying Machine that are expected to perform well.
“The remaining portfolio is strong on profitability,” said Lalbhai, highlighting Arvind’s focus moving forward.
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