Debenhams stores shut in India, will rework strategy for relaunch
Arvind Lifestyle Brands Ltd, a subsidiary of Arvind Ltd has shut down Debenhams stores in India in order to re-work its strategy for Britain retail chain in Indian market. Arvind Lifestyle had acquired the Indian franchise rights of Debenhams in conjunction with fashion brands, Nautica and Next from Planet Retail in 2012. The business plan was to open six new Debenhams stores in the country by 2017. It was anticipated that the acquired business would grow to Rs 500 crore from Rs 70 crore over a span of five years.
Explaining the reason for store shutdown, J. Suresh, Managing Director, Arvind Lifestyle Brands says, “Owing to very steep price points it was not feasible to introduce changes in the supply chain to bring down the prices. Moreover, the location of the stores was also unfavourable.” Following the store closure of Debenhams, the acquired businesses of Planet Retail is now expected to reach Rs 250 crore by 2017.
For the year ending March 2015, Arvind Lifestyle expects a 33% growth in revenue over the last financial year to Rs 2,300 crore. Arvind Lifestyle has licensing relationships with international brands such as Gant, Arrow, Izod, Energie, US Polo Association, Elle, Cherokee, Mossimoand Geoffrey Beene. Last year, the company partnered with The Children’s Place Inc., an Amercian kids retail brand and Gap Inc., an American multinational clothing and accessories retailer. “We open 100-150 stores every year across all brands,” adds Suresh.