1. Future Retail to open new distribution centres

Future Retail to open new distribution centres

Future Retail is looking at opening new distribution centres to ensure that products reach its stores faster and help save on costs through greater efficiency in view of the implementation of Goods and Services Tax from July 1.

By: | New Delhi | Published: June 9, 2017 3:06 PM
future retail, future retail new centres, future retail on gst, gst implementation date, gst impact Future Group has 2 distribution centres in the country — in Nagpur (Maharashtra) and Burdwan (West Bengal) — for long lead time categories — clothing and home products. (Reuters)

Future Retail is looking at opening new distribution centres to ensure that products reach its stores faster and help save on costs through greater efficiency in view of the implementation of Goods and Services Tax from July 1. GST addresses issues of inefficiency, wastage and delays in supply chain, Future Retail Joint Managing Director Rakesh Biyani told PTI. “With the free movement of goods, no tax credit loss, we can plot at distribution centres as to where the consumption is and where we intend to build more stores so that we can bring in an efficient supply chain,” he said on the sidelines of CII-India Retail Conclave 2017.

“Ahead to GST implementation, we have upgraded our technology platforms, our supply chain is ready to do centralised distribution. We are now mapping out further distribution centres…to optimise our costs,” he said. GST is an opportunity for retail sector to save cost through efficiency routes, he said, adding that it is going to lead to price reduction, which in turn will lead to higher consumption. He, however, did not give details of how many more distribution centres it will open.

Future Group has 2 distribution centres in the country — in Nagpur (Maharashtra) and Burdwan (West Bengal) — for long lead time categories — clothing and home products. It has multiple smaller distribution centres for suppling products such as food, grocery to its stores. Property consultant JLL India, the official knowledge partner for the retail conclave, also released its latest research report at the event entitled ‘India Retail: Change is the New Constant’.

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