The textile and apparel retailer, Raymond Ltd has pulled down the shutters on its sole kidswear brand Zapp!, four years after it was launched. Zapp! was launched in 2006 with the plans to open 12 stores.
The company said that the termination costs eroded margins in the branded apparel business for the September quarter though retail analysts said the brand shutdown had been gradual. Raymond has been selectively closing down non-performing brands. In June, it shut home accessories brand Be: Home, two years after it was launched. Last year, it wound up mass-segment brand Notting Hill in metros and large cities, and confined its sales through Raymond stores in smaller towns.
Before that, it withdrew from a 50:50 venture with Grotto SpA Group of Italy, under which it sold the denimwear brand GAS in India.
Rituraj Verma, national director, retail agency, Knight Frank India, said, “The high pricing of Zapp! didn’t go down well with Indian shoppers, who didn’t see any value in it, which is why the brand didn’t do well.” He said the average price for an item of clothing was Rs.2,000, high by Indian standards.
Raymond is focusing on brands such as Park Avenue and semi-formal brand ColorPlus, which contribute more than 60 per cent to its more than Rs.600 crore apparel business, while also expanding franchise formats such Neckties & More and Shirts & More. Raymond has 665 stores across the country occupying 1.4 million sq. ft. of space.
– IndiaRetailing Bureau