Slowdown blues: Aditya Birla Nuvo rejigs retail strategy
April 3rd, 2009
Sluggish sales due to a downturn have resulted in a change in strategy for the retail business of Aditya Birla Nuvo Group. Company officials told CNBC-TV18 that the 15,000 sq ft Peter England People’s store will now be downsized by almost one-third. The company plans to open around 10 stores and introduce new categories in the apparel section.
Sales though have just grown by 12% in the last three months in comparison to 25% for FY09. In the investor presentation on the company’s website for Q3 FY09, the company says that new apparel retail initiatives could not meet targeted growth due to market conditions and reported a loss of Rs 35 crore.