The transition of the Park Avenue brand to EBO [Exclusive Brand Outlets] from TRS at a size less than 1,500 sq ft. This transition will continue next year as well for TRS’s of size 1,500-2,500 sq ft, in our view. While this transition has been ongoing for the past three quarters, its impact was more pronounced in Q3. While we believe the shifting of Park Avenue from TRS to EBO will have an adverse impact on apparel sales in the near term we understand the benefits of increasing the brand’s scale / visibility will be visible in the long term. The Park Avenue brand (contributes ~ 41% of apparel sales) has currently become a ~INR3bn brand, according to management.
