Impact of E‐tailing on Raymond

[retailmantra]

Raymond Management stated that there was disruption by e‐tailing players in October. E‐tailing had 3 major sales in October which were healthily advertised. Overall fashion apparel products sold in these three sales would be Rs10 bn and will be around 5% of sales for this period. Company sells to e‐tailers at the same terms of trade as it does to other trade partners. E‐tailing is more of an opportunity as it opens distribution PAN India

Raymond added 16 stores during the quarter and simultaneously closed down 6 stores taking the exclusive retail stores to 964 and total retail space to 1.85mn sqft. During the quarter, Company completed renovation of top 30 stores and 12 stores under renovation. Branded apparel registered growth of 15% (YoY) and reported EBITDA margin of 6.5% a dip of 140 bps YoY.

[xcoolaryan]

I would say impact has been far more than company has said. raymond is laggin branded apparel space. UCB, Wrangler and Madura Garment are selling far more items.
it's acquistion of colorplus has not been very successful and notting hill is a failed brand.

Park avenue is the only brand that can stand on its own, whereas they have lost a very good oppourtinity with Parx.