“We have seen a nearly 30 per cent decline in demand since demonetization was announced, and it has come at a time when the wedding season shopping is at its peak,” Raymond CEO Sanjay Behl said.
“The liquidity has also shrunk, and more than 80 per cent of this (textile) business is cash driven. However, I see the situation easing up in the beginning of next year. Another major impact will be the Goods and Services Tax (GST) when it comes through,” he told PTI.
“The textile sector is still largely unorganised and GST will help formalise the system,” Behl was further quoted by PTI as saying.
Raymond, which is looking to expand its store count, however reiterated that its expansion plans will not be affected by the current situation.
“Most of our store expansion is franchise based and less company capital based, so it will not drastically affect our retail expansion plans,” Behl was quoted by PTI as saying.
“We have 1,060 stores at present, and will continue to add about 150-200 stores every year for the next three years,” he told PTI.
The company is targeting about 1,500 stores for its brands by 2020, he said to PTI.
The brands include Raymond (Ready to Wear), Raymond Made to Measure, Color Plus, Park Avenue and Parx.
Raymond also recently tied up with Khadi Village and Industries Commission to launch a new line of clothing under the brand ‘Khadi by Raymond’.