Future retail to boost private labels, open retail stores in tier 2, 3 cities

By

Maverick Martins

Published
Aug 28, 2017

Future Group in order to boost its private label sales in planning to expand its presence across the country by opening smaller stores in tier 2, 3 cities, said a top company official.

Future Retail’s private labels currently contribute 35 percent to the overall sales of the company and with this expansion it is eyeing the sales to double and touch 65 percent in the next five years.
 
The company’s profit jumped 108 percent to Rs 147.85 crore (approx $23.1 million) for first quarter ended 30 June 2017 witnessing an 18 percent rise in income to Rs 4,707.44 crore (approx $737 million).

"Big Bazaar is our flagship store with highest penetration, but for smaller towns the company is looking at opening smaller format retail stores," C P Toshniwal, chief financial officer of Future Retail, told a news agency.
 
“Presently, about 35 per cent of the company's sales come from private label products, the target of the group is to increase this in the next five years to about 65 per cent. Opening smaller format stores will increase penetration and help establish the brands further," Toshniwal explained.
 
Future Retail operates 893 stores across Big Bazaar, FBB, easyday, Foodhall, ezone and Home Town in 246 cities across India.