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Vishal Retail reports sales decline of 12-15%

According to unconfirmed reports in the Indian press, Vishal Retail has reported an overall decline of 12-15% in sales. Apparel sales fell from 57% in Q2 to 53% in Q3 of cumulative sales. As per industry sources, seasonality and low consumer sentiment owing to the slowdown has been reflected across the retail industry and also resulted in a fall in average footfall from 213 thousand to 198 thousand. The company is cutting costs by reducing area in 12 stores to reduce the rental bills by 20%. Regional warehouses have been abandoned while the warehouses in NCR (the national capital region) are being consolidated. Furthermore, to cut costs the company has initiated processes including efficient packaging solutions, is maintaining minimum inventory levels and is expanding its franchise model to reduce funding requirements for growth.

www.planetretail.net

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