Strong near-term triggers for Future Retail

Achieving ambitious 5-year target of smaller stores, however, hinges on execution and customer acceptance

The Future Retail stock gained 12 per cent after the company unveiled plans to expand through small format stores, while enabling customers to shop both online and offline. The target is opening of 10,000 stores over five years (2022), starting with 1,100 stores in FY18.
 
These members-only stores will have 2,000 members each, translating to 20 million customers. The company will offer a 10 per cent discount on products and expects this business to generate Rs 1.5 lakh crore of annual revenue. Currently, it has 537 smaller format stores under the Easyday brand, with a club membership of 250,000.