Reliance Footprint, the footwear arm of Reliance Retail
launched in November 2007, has broken even at the company level in June this year. It has performed well in the Indian markets in spite of the economic slowdown. Reliance Footprint, with 29 stores across the country, achieved the break-even much earlier than the estimated time frame of five years mainly due to cautious steps taken by its management during the slowdown.
As a response to the slowdown, the company had also down-traded by offering its footwear products at lower price points. However, it now plans to reverse its pricing this year, now that the economy is almost stable. The company has plans to reach the Rs 3,000-crores turnover mark in three years, which would give it an all-India market share of eight per cent in the footwear industry and 20 per cent share of the organized sector.
G. Sankar, Chief Executive, Reliance Footprint says they were cautious while selecting properties and negotiated well on rentals as also cut costs internally. They will trade up this year and offer products at higher price points as consumers are increasing their shopping budgets. As for expansion plans, he said that the retail chain would reach the 50-store mark by the end of this fiscal, and add around 50-75 stores every year thereafter. The focus for the coming years would be on opening more stores and as quickly as possible.
Reliance Footprint is positioned in the mid-market segment, offering 45-50 brands in each of its stores. About 25 per cent of the offering is currently from international brands, which will also up depending on market trends. However, private labels contribute about 30 per cent of the business in terms of value and about 45 per cent in terms of volume. The company will keep a balanced ratio over the coming years.