This seems to be a better company in the making in the coming future. The intentions are good and the system well placed.
Few Key positives:
Acquired distribution centre which is handling 70% of the total dispatches. The company hastied up with APL logistics for better management. The system is being put in place.
As per the management things are improving with SCM(Supply chain management) and yieldingbetter results in SCM. The end objective is to Improve efficiency and scale further without any hurdles. The results could be seen in the coming quarters.
Enhance better training and equip the staff to add the required skill-set. Focusing on product development, merchandising, fashions etc.
Recruited a senior official from trent as VP , Merchandize. Things to improve in this sector. (I remember Mayur recruiting Ramdas Acharya, Senior VP Technical and VK Khanna, SVP operations to improve their operations and efficiency and quality and how the things turned around after that). Need to watch this space further.
whole leadership team aggressive and informed. Committed to meet the expectations.
Tied up with technology provider(developers- IITians), to connect the stores online.Apart from data points , administration can also be seamless and online and helpful. Cost of purchase very less.
Particularly useful in visual merchandising, decision making, connecting with the staff online etc.
To improve the internal audit process and compliance and to further provide transparency, hiring EY(Ernst&Young) for internal audit process where the firm has domestic and international experience.
Some metrics for this quarter on operations
1.95 stores increased from 76 in 82 cities (61 - fashion) 34(composite) in 12 states .total sq feet at 7.62 lakh
2.70% of the stores company operating was monsoon affected for Q1.
3.Customer confidence good with respect to earning potential. Hopes this bring in and translate to consumption in the coming quarters.
4). Slight fall in sales in apr and may but made it up in june. Q2 expect to be stable and slightly better because of festivals preponed.
5). 4 stores opened another 6 in in this quarter. Will work to meet 25 stores for this year.
6.sales per sq foot improved to 794/- from 734.( 8% growth)
7). ssg of 9% (volume 4%) against 8% (volume of 1.5%) previous year.
8). 90:10 - contribution of fashion and kirana.
9). Transaction size avg 601 from 527.
10). footfalls 32.75 lakhs to 42.15 lakhs. conversion rate reduced at 65% from 68%.
11.will follow cluster based approach.
12). full year capex at 29 crores. store takes around 2.5-3 years to break even.
shrinkage at 1.5% vs 1%. Store audit done at 30 vs 12. increase of 150%. Also reason for reduced GM.