Lifestyle, which is part of Dubai-based retail and hospitality conglomerate The Landmark Group, is planning to add 12-15 stores at an investment of Rs 100-150 crore in FY19.
Lifestyle, which is part of Dubai-based retail and hospitality conglomerate The Landmark Group, is planning to add 12-15 stores at an investment of Rs 100-150 crore in FY19. Vasanth Kumar, managing director, Lifestyle International, during an interview with Jharna Mazumdar, also said sales remained flat this year during monsoon for the company, and due to the floods in Kerala, sales will be impacted during the festival of Onam as well. Excerpts:
How has been the overall sales during this monsoon?
This year sales have been flat compared with last year as it is on a high base. Last year in the-run up to the implementation of the goods and services tax (GST), there was a huge stock clearance which had pushed up sales in a major way.
What percentage of your total sales is contributed by Max and Lifestyle?
In FY18, Lifestyle stores witnessed a turnover of Rs 4,000 crore while Max stores witnessed a turnover of `3,000 crore. Home Centre had a turnover of Rs 1,200 crore. Same store sales have grown at an annualised 8-9% over the last two years. We expect an overall 16-18% revenue growth across our businesses in FY19. All our businesses are profitable, but we can’t share the exact numbers.
What are your expansion and investment plans? Any plan to raise funds?
The company has already opened four Lifestyle stores in the July-September period and is planning to add another 12-15 stores at an investment of Rs 100-150 crore by the end of FY19. Right now, there are 73 Lifestyle stores operational across the country. All our funding will be done through internal accruals.
What percentage of your business is coming from online?
We have an omni-channel strategy and are adding tablets and kiosks in our stores wherein customers can see the entire catalogue of merchandise, sizes available across the stores among others. Further, customers can order online and pick it from our stores. At present, online contributes only 1.5% of our revenue, but we expect the share to grow to 10% in the next five years.
How many stores do you have in Kerala?
We have four stores in Kerala and they are shut due to the floods. Sales will be impacted around Onam which is on August 26. We have diverted our unused old stock clothes for relief work in Kerala.