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| Value buying pushes up Pantaloon's April sales |
| BS Reporter / New Delhi May 14, 2009, 00:04 IST |
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 Kishore Biyani-promoted Pantaloon Retail’s same-store sales in April grew the most in six months because of strong consumer demand. Same-store sales in the value retailing segment grew 7.02 per cent, the most since Novemeber, to Rs 308.19 crore. Sales in the lifestyle segment grew 6.03 per cent to Rs 119.53 crore. Sales in the home retailing segment fell 28.21 per cent to Rs 34.57 crore. Total sales for April rose 20.03 per cent to Rs 595.81 crore.
In absolute terms, value retailing rose 23.44 per cent to Rs 367.20 crore, while lifestyle retailing grew 18.1 per cent to Rs 135.81 crore. Home retailing grew 10.61 per cent to 92.80 crore.
“During a downturn, people do not stop consuming. As a retailer, it is important for us to see things beyond the black-and-white picture of recession and find ways to bring customers to our stores. This is what we have done,” said Kishore Biyani, managing director, Pantaloon Retail Ltd.
Same-store sales are sales from stores that have been in the business for a year or more. The measure allows investors to determine what portion of new sales has come from growth and what has come from opening new stores. The figures are usually released by retail companies each month.
“Our home retailing segment will also show better numbers in May as there is a revival in the real estate market and people have started purchasing homes and the products related with it,” Biyani added.
In November last year, the same-store sales for value, lifestyle and home retail fell 13.78, 10.32 and 36.01 per cent, respectively.
A key reason for faster growth in lifestyle retailing could be steeper discounts.
“In January and February, Pantaloon’s discount offers removed the difference between lifestyle products and value products and that is the reason behind the constant increase in the sales figures of the company since then,” said Raghav Sehgal, an analyst with Angel Broking.
“The overall market has also revived and without discounts, Pantaloon should be able to post similar growth in future. However, the home retail segment will take two-three months to revive,” Sehgal added.
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