Kishore Biyani’s Future Retail is on a rationalisation drive. The company has merged 69 shops of electronics and durable chain Ezone into larger stores such as Big Bazaar and Home Town in the last one year as it went about focusing on small stores and flagship Big Bazaar. At the same time, it opened 22 Big Bazaars and about 192 Easyday stores, Future Retails’ investor presentation showed.
Rajan Malhotra, President, retail strategy, Future Group, says standalone stores of Ezone have remained the same. Future Retail also did store rationalisation of 300,000 sq ft on a quarterly basis in the April-June quarter of FY18, primarily in Easday—it shut few non-performing stores and changed 14 Heritage stores to Big Bazaar and Home Town, according to a report by Edelweiss Securities.
Future Retail has total space of 13.5 million sq ft, tad short of Reliance Retail which has retail space of 13.8 million sq ft. In Q1 of FY18, its net profit more than doubled to Rs 147.85 crore revenues from operations went up 18.22 per cent to Rs 4,704.93 crore. The same store growth of Big Bazaar stood at 15.9 per cent in the last four quarters. In comparison, the retail business of RIL posted profit before depreciation, interest and taxes of Rs 398 crore in the quarter ended June, a 66 per cent annual jump at the back of record sales growth of 73.6 per cent to Rs 11,571 crore in the period.