homebusiness Newscompanies NewsRaymond sees delay in festive sales due to Adhik Maas, plans to open 500 stores in 4 years
Raymond sees delay in festive sales due to Adhik Maas, plans to open 500 stores in 4 years
Raymond's group CFO Amit Agarwal speaks to CNBC-TV18 about the firm's delayed festive sales estimates, its expansion plans, and more.
Diversified group Raymond is expecting festive season sales to be delayed by a month because of 'Adhik Maas', its group CFO Amit Agarwal said on Monday, August 14.
Adhik Maas, is an intercalated month in the Hindu calendar and can impact the buying patterns during the festive season, which is typically marked by celebrations, weddings, and auspicious occasions.
The 'adhik maas', an extra month, occurs in the Hindu calendar every three years. So the pitru paksha segment in the calendar — which lasts for 16 lunar days, when Hindus honour their forefathers and refrain from celebrations — usually ends around mid-September. However, this year, because of adhik maas, it is being shifted to mid-October, after which the Durga puja, Dussehra and Diwali festivals, and then the wedding season, will follow.
"So, there is a little bit of a delay in everything. Hence, whatever sale we have seen historically happening in the second quarter, which used to be a good quarter will get delayed by almost a month," Agarwal told CNBC-TV18.
Raymond reported multi-fold gains in its quarterly consolidated net profit at Rs 1,066.74 crore, which was helped by gains from the sales of the company's consumer business to Godrej Consumer Products. In the same quarter last fiscal, it reported a net profit of Rs 81.93 crore.
During the June quarter, the company said it witnessed an early onset of the end-of-season sale in the apparel sector and also moderate consumer sentiments in a seasonally-weak quarter.
“In terms of price cuts or such things, you typically have two end-of-season sales. This time, the end-of-season sale started a little early and the discount range, which used to be a certain percentage, has increased by 300-400 basis points," Agarwal said.
The textiles and apparel maker also plans to open 450 to 500 stores over the next three to four years. "We are not opening anything less than 1,200-1,400 square feet stores. So we expect the sales to deliver anything between Rs 1.5 crore and Rs 2 crore per store on a matured level-basis,” he said.
He added that some stores mature in 15 to 16 months, some take two years, and a few take some more time.
Agarwal also said the company is looking at exclusive launches in its Ethnix brand.
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