Landmark Group-owned department store chain, Lifestyle expects strong sales during the upcoming festive season, despite the current economic slowdown that is affecting the market.
Lifestyle has faced a slump in sales in the last few months owing to excess availability of shopping destinations in a vicinity. The number of malls, noticeably, has doubled in last 4 years.
Explaining further, Vasanth Kumar, Managing Director, Lifestyle, said “In Noida alone, there are 20 places to shop, while earlier there used to be only one mall. So, when there are excess malls, stores will face problems because customers do not want to go 5 km to go to a mall. That is why the shrink is happening because of the excess amount of malls in vicinity.”
With new collections to be launched especially for Diwali, the retailer is hopeful that its private brands will see an upswing in sales this festive season.
“Our journey of private labels started a long time back and over the past 4 years, we have seen strong 30 per cent of our total business coming from them. Just that we are multi-brand fashion store, we can’t overdo it. We have to balance, which is what we are doing right now at 30 per cent. Our goal is to make private brands reach 35 per cent of our total business in next 3 years,” said Vasanth.
Lifestyle at present has 10 private label brands.
The company is looking at expanding its reach in the Tier 1 towns and metro cities with plans to open 8-9 stores every year for next 3 years. Lifestyle does not plan to open in high-street locations; hence it is on a lookout for new spaces in upcoming malls.
The retailer currently operates 78 stores across the country and is expecting a continuing growth rate of 8-10 per cent for next 3-4 years.