Reliance Footprint to breakeven in 2 years

Reliance Footprint has become cash-positive at the chain store-level and the company expects to breakeven in the next two years.

Mr G. Sankar, Chief Executive, Reliance Footprint, said the company’s plans to take the number of stores from 16 now to 100 by March 2012 would enable it to break even. The footwear chain has 1.07 lakh sq ft and plans to take the store count to 30 by June 2010.

The footwear market in the country, currently estimated at Rs 14,000 crore, is expected to go up to Rs 25,000 crore in the next four years. About one-third of the market is in the organised segment, he said.

Reliance Footprint has tied up with ASICS Corporation of Japan to bring the 60-year-old sports brand into India. The footwear chain will sell the Japanese brand through Footprint stores and open exclusive brand outlets (EBOs) across the country. The first one would be launched in Bangalore soon and would have 10 EBOs in the first year, Mr Sankar said.

Reliance Footprint would not be averse to opening EBOs for other brands, especially in the men’s footwear segment, said Mr Sankar. The chain sells footwear, handbags and accessories totalling 20,000 SKUs across 50 brands. “We are also looking at launching footwear for specialised segments such as for diabetics and for the disabled,” he said.

Source:http://www.thehindubusinessline.com/2010/01/19/stories/2010011952330300.htm

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