Pantaloon riding high on new stores sales

MUMBAI: Kishore Biyani-promoted Pantaloon Retail has added close to 450,000 sq ft of retail space during March 2007. In fact, the country’s leading retail company added seven new Pantaloon stores, which according to J P Morgan analysts Vijay Chugh and Latika Chopra, have contributed to almost half of the humongous growth being witnessed by the retailer in March 2007.

According to the JP Morgan report, total year-on-year sales of Pantaloon Retail for March 2007 was up 84% at Rs 2.6 billion. While the company’s value retailing sales (66% of the total share) grew by 74% from a year ago, lifestyle retailing (24% share) witnessed a year-on-year growth of 70% thanks to the new additions being made during the month. Contributing approximately 10% to the company’s topline was its home retailing sales that stood at Rs 286 million.

While addition of new stores lead to increased business a downslide was observed in the growth rate of the retail company’s same-store sales (SSS).

The report pointed that same-store sales (SSS) growth slowed down to 13% from over 20% growth rates witnessed over past three months. “This was largely on account of low 10% SSS growth for value retailing. Lifestyle retailing registered 21% SSS growth during the month,” said the analysts.

Over the next month, Pantaloon plans to launch the second such store at Ahmedabad. In terms of its over all expansion, Biyani in the coming 1-2 months is targeting to close FY07 with over 6mn sq ft of retail space under is retail business portfolio.