Aditya Birla Fash­ion Wit­ness Down­fall of For­ever21

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Aditya Birla Group re­cently wit­nessed Rs23 crore loss in busi­ness be­cause of fall­ing sales of brand For­ever21. The group is now down­siz­ing the brand’s stores and cut­ting costs as sales from the fast fash­ion busi­ness de­cline.

Loss widened be­cause For­ever21 took a one-time in­ven­tory hit. ABFRL has re­duced the sizes of its old­est stores and will now fo­cus on open­ing new but smaller stores. ABFRL is ex­pect­ing the fast fash­ion busi­ness to turn around by the next quar­ter, driven by high dou­ble digit like to like growth in sales. Like to like refers to growth in sales from stores that have been open for the same pe­riod of time. The firm has been fo­cus­ing on cost cut­ting to help boost mar­gins, pri­mar­ily through rene­go­ti­at­ing rents and re­duc­ing store sizes wher­ever pos­si­ble in­clud­ing for Pan­taloons, the firm’s de­part­men­tal store chain.

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