Baazar Style Retail MD Expects Online Sales To Add 2% To Topline In Next Three Years
Baazar Style Retail MD MD Shreyans Surana expects offline stores to contribute 95–98% towards total revenue in the period, even as it tries to build a profitable online channel.
Baazar Style Retail's Managing Director Shreyans Surana said that the company is working towards building an ecosystem around its online sales.
In the next three years, the fashion retailer with stores under the brand name Style Baazar, expects up to 2% of the total revenue coming in from the online front.
While elaborating on the expansion plans of the retail chain, which listed on the bourses in Sept. 2024, Surana told NDTV Profit, “We are developing the ecosystem around online. However, in our scenario, because the price is very attractive and we are dealing in a 33–34% margin, at that price point with the logistics cost even online cannot compete.”
Baazar Style Retail Ltd. expects offline stores to contribute most to its revenue going forward. “The major contribution will be from offline stores only. We want to build a profitable online model. As much as 95–98% of revenue in the next three years will come from the offline model only. So 1–2% is the target for the online segment,” Sauna said.
He emphasised that the company was "trying to give the customer the experience of shopping online but without killing our margins”.
As of now, the company has an ‘omnichannel’ model in its stores, "where any customer can have the clothes delivered to their home address,” Surana said.
The retailer's MD further revealed that Style Baazar will make its online foray through its own website, but will eventually be available in other marketplaces as well.
In the second quarter of the current financial, Baazar Style Retail reported total revenue rising 65% to Rs 313 crore, compared to Rs 189.6 crore in the same quarter a year ago.
In the quarter under review, the company's net loss narrowed to Rs 89 lakh from Rs 1.55 crore in the year-ago period.
Referring to the results, Surana attributed a major part of the company’s growth to volumes. He said, “We are able to increase the basket size for every customer. In terms of tier 2 and tier 3 towns, the festive and wedding (seasons) play a very important role."
Further, stressing on pricing correctly, he said, "The prices play a very important role and the prices are very important for us. That has been a key reason for our success and the growth we are achieving.”
Shares of Baazar Style Retail Ltd. closed marginally lower at Rs 315 apiece on the NSE on Thursday. In comparison, the benchmark Nifty 50 closed with a 0.11% dip at 23,532.70.
