Fashion chains post record sales

After their initial fascination with discount-dangling online fashion portals, shoppers seem to be moving back to brick-and-mortar stores. Future Group’s Central and Brand Factory, Aditya Birla’s Pantaloons and Trent’s Westside have been posting record same store sales growth (SSG) in the last few quarters. It is a crucial yardstick in deciding performance of stores as it measures sales growth coming from stores that have been in business for a year or more.

Pantaloons posted a 16 per cent same store sales growth in Q1 FY17, the best since it was acquired by Aditya Birla group from Future Group four years ago.

Central, owned by Future Lifestyle Fashions (FLF), posted a 10 per cent growth in Q1 FY17, one of its best in the recent past. Similarly, FLF’s retail segment, which includes formats such as Brand Factory, posted SSG of 10.1 per cent in Q1 FY17, almost double of corresponding quarter in FY16. Even Tata-owned Westside posted an eight per cent SSG in FY16, one of its best in recent years. While Raheja-owned Shoppers Stop posted over 8 per cent SSG in FY16, it posted around five per cent SSG in Q1 FY17. Shoppers Stop Managing Director Govind Shrikhande said SSG is a reflection of two factors — economic growth and base effect. “The overall market continues to be sluggish in Q1 and last year this quarter recorded a high double-digit growth. As a result of both these factors, we are seeing a growth number in low teens,” he said. Shrikhande said the chain is expecting seven-eight per cent SSG in current financial year as it believes that second half would pick up.