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Mark Ladham in Calcutta on Thursday. A Telegraph picture
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Calcutta, Sept. 13: Kishore Biyani-led HomeTown has a four-point plan to attain break-even this year: increase localisation, resize existing stores where needed, invest in staff training and IT.
“In terms of sales, we are less than 10 per cent of Future Group. I don’t see that changing a great deal. Where we are, we are focussing on how we drive a profitable bottomline business,” said Mark Ladham, president (home division), Pantaloon Retail India, while inaugurating the fourth HomeTown store in the city at the Diamond Plaza Mall on Jessore Road.
Ladham said HomeTown had been discussing with local furniture workers and owners on how to add volume and reduced dependence on imports.
“We see an opportunity in local vendors. It shortens our lead time and improves cash flow. We are working on a HomeTown Express format for a year now. We now have a format, which really works. This is a very important year for us. We are working hard on Express so that it becomes a profitable growing format and returns are good. We are also working on re-sizing our HomeTown itself where needed,” he said.
Lead time is the amount of time that lapses from taking the order to the delivery of the product. The company plans to increase localisation in furniture to 50 per cent from 30 per cent.
While HomeTown ideally has a floor size of 6,000 square meters, the HomeTown Express will be spread across 1,500 square meters and keep in-house brands in the ratio 70:30. HomeTown largely imports its dining stock.
HomeTown could add another five stores in the next 12 months across the country, although the rentals are high.
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