Bangalore-headquartered Brand Factory, the value fashion chain of Pantaloon Retail Ltd, aims to clock sales growth of about 20 per cent — about Rs 300 crore — in 2009-10 and plans to set up 35 stores by 2011, according to Rajesh Seth, vice president – marketing and customer experience management, Central and Brand Factory.
The company’s sales growth was about 9-10 per cent (Rs 250 crore) in 2008-09 due to the economic slowdown. “Since our inception three years back we have been witnessing double-digit growth, except for last year when we had single-digit growth. This year, however, we are hopeful of achieving double-digit growth of about 20 per cent,” Seth tells Business Line at the inauguration of the company’s first store in Kolkata recently.
Brand Factory, which currently has ten stores across the country, plans to set up five more by the end of this fiscal. “We will open two stores in Bangalore, one in Hyderabad and about two-three in Mumbai by the end of this financial year (the company follows June-July accounting year). Depending on the nature of the store, the investment per store could range anywhere from Rs 6-10 crore,” he says.
Sales during the festive season (September-December) would account for almost 30-35 per cent of the company’s annual turnover, he said. “Unlike earlier, shopping has become more of a leisure activity, and people prefer to buy when they have time and not necessarily only during the festive seasons. However, we usually see a spurt in sales during this time of the year,” he points out. The company spends about 3 – 3.5 per cent of its turnover on advertising and marketing expenses.
He said the company hopes to achieve an annual turnover of about Rs 45 crore from its first store in Kolkata this year. “We want to expand our presence in the eastern region and are looking to open 2-3 more stores in the city shortly,” he says, declining to indicate a specific timeline for the launch.
Source: The Hindu Business Line