New Delhi: Textiles major, Arvind Limited is in the process of restructuring its strategy for its Megamart retail chain and has shut around 30 loss-making outlets in October-December.
The move comes after the company reported a 3.33 per cent decline in consolidated net profit at 104 crore for the third quarter (ended December 2015).
The company is likely to shut another 50 loss-making stores in the next couple of years. About 95 company stores are operational at present.
Arvind Ltd has also created a new value department chain branded, Unlimited, by converting large stores of Megamart that has been struggling to shed its discount format image and sell premium brands without discount.
According to a Motilal Oswal report, in the quarter ending December, brands and retail grew 12 per cent was led by 22 per cent growth in the brands segment excluding Megamart.
Megamart de-grew by 16 per cent on account of store closures. Same store sales growth for brands stood at 1.7 per cent while for Megamart it was down 13.9 per cent. Power brands grew by 15 per cent.