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.