Future Group has seen key executives leave its home
retail division, Home Town. This happened over differences with expatriate managers. At least three senior company executives including its head of sourcing and ex-chief executive officer Mahesh Shah, senior functionaries in the furniture category, Abhishek Srivastava and Mark D’Souza and a key executive in the kitchen division have quit.
Already dealing with the debt situation and high inventories, cash strapped retailer Pantaloon witnessed a decline in its same store sales growth in the home segment by four per cent as compared to the value segment, which saw a 7.5 per cent same store sales growth; the lifestyle segment saw 11.4 per cent growth in the quarter ended June 2011.
Businesses like retail require expats to bring in best practices in the organisation and acquire skill-sets not available locally. But there has to be a clear communication between the expats and local executives for a smooth functioning. And given the difficult situation on both the ends, where the company is reeling under debt pressure and realty sector witnessing a slump, Future Group has another roadblock ahead.
It may be noted that Mark Ladham, who used to work with home solution retailer B&Q in the UK, is the current CEO of Future Group’s home division, comprising Home Town, Furniture Bazaar and Home Bazaar.