Future Retail sales slump amid economic slowdown
Future Retail’s net profit had declined 7 percent to Rs 165 crore ($23 million) for the second quarter on a revenue of Rs 5,449 crore, and was hoping for a strong third quarter due to the festive season.
The company is also in the process of shutting down its unprofitable stores across all formats, to cut down on its losses and improve margins going forward.
“The footfalls have seen a drop in some markets and prolonged winters have impacted business for the group. Over the last two-three weeks, the demand in Q3 has slumped due to public unrest,” Rakesh Biyani, joint managing director at Future Retail, told CNBC TV-18.
“The company expects to see single-digit growth in the current fiscal 2019-2020 at like-to-like growth of 6-7 percent. However, the overall revenue growth is seen at double-digit 11-12 percent,” he added.
Future Retail operates more than 1,550 for its brands Big Bazaar, FBB, Easyday, Ezone among others. Majority of its revenue is driven by the group’s supermarket chain, Big Bazaar, and fashion retail chain, Fashion at Big Bazaar.
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