Raymond Color Plus Fading ?

May 5, 2008

You are Reading this First HereRaymond’s Color Plus seems to be fading with high operating costs, salaries and low margins to the company itself. Additionally the company opened 3 new Color Plus stores and 10 new Raymond Apparel stores in the last quarter.

Management intends to focus more on the franchise model for expansion into Tier-II/III towns and expansion through own stores might slow down. They might also close down a few stores in malls which have not been doing well. [High Rentals Vs Moderate Returns in mall is not a viable business model] These steps should help improve the profitability of the business in the medium term.

Sales growth is expected to remain strong driven by a consumption boom in the country. We expect the company to add 100 new stores every year (including The Raymond Shop, which comes under Worsted textiles division).


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