Saturday, February 10, 2007

Retail majors face pressure to improve margins

The Economic Times reports that the top six retail companies in the country reported an increase in net sales by 46% for the quarter, while net profits only rose 29% for the period. Top line growth was 59% for Pantaloon, 29% for Shoppers’ Stop, 28% for Trent and 43% for Titan, but profits were not as impressive due to rising staff and real estate costs.

Pantaloon Retail reported sales growth of 63% for its value retail segment and 37% for its lifestyle retailing segments, adding Rs 27 crore with its home furnishings concept segment. Interestingly, the growth came from new stores, while older stores growth rates stood at 14% for value retail and 15% for lifestyle retail.

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