Thats a very good analysis Sudheendra
Retailing in India is at a cusp of disruption due to market share being fought by online retailers and supermarkets
In most countries people still prefer to go to a local shoe shop to buy shoes. It will be some time before this revenue stream is eroded but revenue from bags, belts and even children shoes will face disruption specially bags sold on the basis of low price.
The company’s profit to cash conversion is splendid. So is their growing eps.
Earlier in the thread someone said the breakeven for franchise shop is turnover of 4-5L a day. Assuming a shop opens at 10am and closed at 10pm with equal distribution of revenue throughout the day, thats 1300-1500 items a day or roughly 2 items a minute. Will a shoe shop have that kind of turnover and how many people would need to show things around, constantly move inventory, attend to customers?
Usually shops are busy towards later part of the day, around evening. Is it possible to have that kind of footfall and turnover ? Please excuse my ignorance. I am trying to make sense of numbers. Thanks