Aditya Birla Fashion and Retail has been investing significantly in revamping the brand portfolio, upgrading stores, improving distribution efficiency, and increasing brand recall for Pantaloons. Private labels currently contribute about 56% of revenues.
The management is focusing on growing the store count. Pantaloons currently has 151 stores in 68 cities, and management expects this to grow significantly over the next few years. The company plans to expand its presence in tier-2 and tier-3 cities by opening stores of 10,000-20,000 square feet size.
Pantaloons same-store-sales growth will hover above 12-15% over the medium-term: Management guided that they expect Pantaloons stores to clock in same-store-sales growth of at least 12-15% over the next few years. Additionally, the company will also grow its private label business to expand margins from the current 3QFY16 level of 6.1%.
Management expects Madura garments to continue growing at 12-13%, in line with historical trends. As returns remain strong in this business, the company may deploy capital to add international fast-fashion brands to its brand portfolio.
