Raymond bullish on wedding season, plans 70 ethnic wear stores
15 February 2023, Mumbai
Raymond plans to open 70 stores across the country in the current year.
These will be primarily ethnic wear stores under the brand Ethnix. Fabric and fashion retailer Raymond plans to focus on generating free cash flow across its businesses and use that money for reducing its debt.
The retailer has reduced its working capital to 60 days from 90 or 95 days. This leaves a lot of cash which can be used to reduce debt or grow the business. Cost under any head has a proper justification attached to it. The company is ensuring that the sustainable cost reduction of Rs 400 crores taken during the pandemic is still in the books and is not getting diluted.
Raymond plans to focus on asset-light growth and not invest significantly in capex. Whatever cash is generated will go towards debt reduction. The company’s retail business has seen robust demand. The average ticket value increased by 25 per cent compared to last year, especially in the wedding market and the company is seeing customers upgrading to higher ticket products.
In the near future, since a large number of wedding days are spread in the month of February and March, Raymond expects the trade channel to gain momentum in anticipation of strong secondary sales, which is expected to drive demand.
