Lifestyle: Evolving Landscape of Indian Large Format Retailers in 2024
18 January 2024, Mumbai
In a series of articles, DFU Publications looks at how over the years India’s Large Format Retailers (LFR) have performed and are strategizing future success, with new challenges and new-age consumers.
Category Expansion, Tech-Enabled Shopping, Tier II Focus: Lifestyle Charts a New Course
All-encompassing retail giants are passé. Lifestyle, the iconic Indian retail powerhouse, is crafting a new story marked by expansive categories, technological innovations, and a deliberate focus on Tier II & III cities.
In response to the dynamic retail environment and shifting consumer expectations, Lifestyle is shedding its conventional approach, threading together a more intricate narrative to secure its position as a trailblazer in the Indian retail landscape.
Shifting Gears and Fresh Focus
The familiar sight of sprawling Lifestyle megastores is undergoing a metamorphosis. With the surge of e-commerce and discerning shoppers seeking more than just apparel, the traditional one-stop-shop model is evolving into a strategic fusion of online and offline experiences.
Trade dynamics
Seamlessly blending physical and digital journeys, the introduction of click-and-collect options is redefining the retail landscape.
Lifestyle is expanding its horizons beyond fashion, incorporating homeware, beauty, and kids' products to cater to the burgeoning demand for comprehensive shopping experiences. Moreover, the gaze extends beyond metros, with Lifestyle strategically eyeing the untapped potential of Tier II & III cities.
Adapting offerings and exploring smaller store formats, Lifestyle aims to tap into rising disposable incomes in these markets, marking the commencement of an exciting new chapter.
Beyond Brands, Beyond Bricks: Crafting a Novel Shopping Experience
Lifestyle is transcending the traditional brand-centric shopping experience. Prioritizing value, the retail giant introduces a mix of mid-range and premium lines, expanding its offerings beyond apparel.
HomeStop and Archies join the ensemble, addressing the desire for an all-encompassing experience under one roof.
It is much more than what meets the eye; Incorporating data-driven personalization through its loyalty program, Lifestyle takes up targeted promotions and recommendations.
Technology mixes with the shopping experience, with self-checkout kiosks, virtual trial rooms, and the Lifestyle Buddy app adding a personal touch.
This bold reimagining surpasses conventional brand and brick boundaries, embracing a future where convenience, personalization, and category harmony reign supreme.
Financial Performance
Lifestyle's financial performance reflects its strategic evolution
|
Year |
Revenue (Rs crore) |
EBITDA (Rs crore) |
Store Count |
|
2021 |
4,196 |
378 |
183 |
|
2022 |
4,412 |
405 |
187 |
|
2023 (estimated) |
4,722 |
430 |
189 |
(Source: Company annual reports, industry research)
Masterplan for Growth
Omnichannel mastery is Lifestyle's new mantra. Click-and-collect options, streamlined delivery systems, and personalized recommendations blur the lines between online and offline, crafting a seamless shopping experience.
The focus shifts towards untapped territories – Tier II & III cities. Curated collections in smaller stores will flourish, targeting the rising disposable incomes in towns with deep pockets.
eco-centric; Sustainability is interwoven into Lifestyle's future. Initiatives like the "Clotheswap Festival" resonate with eco-conscious shoppers, hinting at a future where convenience, personalization, profitability, and sustainability converge, promising a dynamic, customer-centric future for the iconic retail giant.
Lifestyle faces intense competition from online giants and traditional brick-and-mortar players. However, a diversified portfolio, emphasis on technology-enabled experiences, and strategic expansion plans present promising opportunities for future growth.
The Road Ahead
Lifestyle is crafting a more intricate narrative beyond its conventional big-box approach. With a focus on category diversification, personalized experiences, and omnichannel mastery, the brand aspires to be the ultimate destination for families and conscious consumers.
While the journey to reclaim dominance in the Indian retail landscape is ongoing, Lifestyle's commitment to evolution and adaptation to changing preferences is a story that demands attention.
