Pantaloon lifestyle sales grow

Thursday, 04 February 2010

Pantaloon Retail has returned to a double-digit growth rate in same-store sales (SSS) in the lifestyle segment. The retailer, which saw either a decline or a single-digit growth rate at best in this category since November 2008, posted an 11 per cent growth for the December quarter. This was aided by higher consumer spending in the category. A common metric in the retail industry, SSS compares sales of stores that have been in the business for a year or more. This measure allows investors to determine what portion of new sales has come from sales growth and what portion from opening new stores. Also, Pantaloon?s gross operating margins went up 10.7 per cent in the second quarter of 2009-10, compared to the same period of the previous financial year
Similarly, lifestyle other retailers like Shoppers Stop and Lifestyle were hit hard during the economic slowdown as spending went down on items like apparel, consumer durables and the like. In terms of retail sales mix also, the share of the lifestyle segment has gone up from 27 per cent in the second quarter of 2008-09 to 29 per cent in 2009-2010. It may be noted that Pantaloon follows a July-to-June financial year. The company posted a 51 per cent jump in its net profit at Rs 50.67 crore and a 25 per cent jump in net sales at Rs 1,912.84 crore for the second quarter ending December 31, 2009.

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