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Koutons Strategy – Standalone to Family Store – Pays off

August 13, 2009


One thing I love about Indian retailers is their approach to the highly dynamic retail market. Koutons Retail in order to beat the slowdown, changed its business strategy to offer complete family shopping experience. The company reported its numbers and has managed to increase its sales by giving deep discounts and through introduction of family stores. Despite huge discounts offered by the company, it managed to improve its gross profit margin.

Family store is an innovative concept for new age entrepreneurs and a one stop solution for entire family. It is a win- win situation for all the parties since in Family store concept company converts small (standalone) stores by expanding its existing retail space or addition of a floor to its existing store and offer shoppers all range of products(ladies-wear, menswear, kids-wear etc) there by increasing the sales which benefits the company (economies of scale) decline in incremental rental for the company(~50% less rentals) and the franchisee owner(in commission and rental), and finally a great shopping experience for the family .

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