Welspun Retail, a part of the Welspun Group, said on Tuesday said that it was not closing down any stores but relocating a few of them to new places to save on rents.
“Rentals were very high last year, but with current slowdown in the real estate sector, we are getting offers from developers who are willing to give their properties on rent at much lower rate or enter into a long-term lease. Thus just by relocating, we will save a lot on rentals,” Welspun Retail’s Chief Operating Officer Mr Ajay Kumbhat said.
Mr Kumbhat said that since rent accounts for around 25 per cent of the cost of operations, getting into a new place at a lower rental meant a lot of savings on that account. “However, we are not closing down any of our stores. We are only relocating some of them to new places in the same locality aiming to maintain market share,” Mr Kumbhat said.
Welspun Retail, which sells home interiors, has 240 ‘Welhome’ stores in 120 cities and two exclusive ‘Spaces Home & Beyond’ stores. Welhome caters to the masses and Spaces Home & Beyond meets the ‘aspirational demand’ of the upper strata of the society. Mr Kumbhat said that the company has already relocated 10-15 stores and is in the process of identifying others which deserve relocation.
Source: Business Line