Various intangibles differentiate us from others: Shital Mehta

Interview with Chief Executive Officer, Pantaloons

Pantaloons, department store chain of Future Group and acquired by Aditya Birla Group in 2012, is banking on the current spring-summer season to test its strength under the new umbrella. The chain came into the Birla fold a year ago but was till now selling products created by Future. Shital Mehta, chief executive officer, discusses the chain’s strategies and plans with Raghavendra Kamath. Edited excerpts:

How has been the journey so far?

For us, there’s been nothing much to separate the past four quarters. Essentially, after taking over last April, we have been selling products not created by us. Our products will come from this season (spring-summer) onwards. That is the first quarter to ascertain how the customer appreciates our work.

What’s your expectation?

We had to start from scratch. I am very confident that we are going to see the results. We will keep getting better as we move on. There are more positive surprises than negatives in our stores. But there are going to be learnings.

What are Pantaloons’ plans for 2014-15?

Essentially, FY15 will be better than FY13 and FY14 in terms of same-store sales growth, margins and expansion. We want to be the best class in the industry.

When do you think Pantaloons will be profitable?

We made operating profits last year. Operating performance is getting better. We are investing in store renovation, brands and promotion and we will get there (being profitable at the net level). Since you want to launch new brands and create communication around your own brands, analysts say it will reduce your margins. Even if we do not do advertising, 80 per cent of what goes in our communication strategy is thinking. When you talk about a brand, we are ensuring what it stands for, what it means for the consumer. It does not require any money.

How are you different from others?

There is nothing common. We compete with both sides, tangible and intangible. I have a combination of exclusive brands, fashionable merchandise and value for money. When you compare us with value players, our differentiation is exclusive brands and fashionable products. If you compare with the big box, our differentiation is value for money. Our differentiation depends on who our competitors are. In intangible things, it is inclusiveness, Indian-ness, service orientation and retail experience which differentiates us from others.