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Indian retailers mulling cost-cutting measures

Posted by superstar23 on September 19, 2008

Mumbai: Following a general slowdown in the economy resulting in customers staying away, Indian retailers are mulling cost-cutting measures and a restructuring of their business models.Two leading players, the Future Group and Aditya Birla Retail, are undertaking cost-cutting measures to beat the slowdown.The Kishore Biyani-promoted Future Group aims to save Rs 165 crore through cost-cutting measures. “We have launched a campaign `Garv se bolo hum kanjoos hai’. With this campaign, we target to save Rs 165 crore in a period of one year,” the Future Group CEO, Kishore Biyani, told reporters on the sidelines of the India Retail Forum here today.

Reliance Retail brings UK’s finest toys to India,Sharing similar sentiments, Aditya Birla Retail plans to restructure its business with a view to save on costs.”We plan to restructure our business and cut costs on rentals, warehouses, administration and others,” Aditya Birla Retail’s CEO, Thomas Varghese, said.

The Group would be selective in rolling-out stores as mall rentals were increasing day by day. It also plans to stick to its format of hypermarkets and supermarkets.

Earlier, in his speech at the forum, Biyani said retail industry needed to collaborate as it would play a key role for growth in the $300 billion-industry.By 2009-10, we would see mergers and acquisitions (in the retail segment), Biyani said.Exposure to competition would help to grow the multi-billion Indian retail industry, he said. McKinsey & Co’s Partner Ireena Vittal said the Indian economy, which has clocked a robust growth in the last five to six years, has been resilient since 1992, when the economic reforms were launched.It’s growth has increased while volatility has decreased, Vittal said.

Vittal, however, expected some volatility in the market for a few more years.

source :-sify news


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