Future retail sales up 20% after note ban: Biyani
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TNN | Jan 17, 2017
Mumbai: Future Group’s founder and CEO Kishore Biyani said on Monday that organised retail has gained as a result of demonetisation. The group, which is present in the hypermarket and fashion businesses, has seen sales rise by 20% in its outlets.
“We have 34 stores and we are looking at adding 16 more in the coming 12 months. We are targeting revenue of Rs 3,500 crore for FY18,” said Biyani at the launch of a co-branded card by Future group’s fashion chain Central and State Bank of India. SBI chairman Arundhati Bhattacharya said that while other businesses had seen a dip in sales during demonetsation, Future Group’s sales have increased by 20% immediately after the ban of high value currency notes. “This is because they are organised retail… they are in a position to capture payments on electronic platform which gives them an edge,” said Bhattacharya.
According to Biyani, card transactions before demonetisation were around 65% of total sales. This jumped up to 85% following demonetisation. The group has also been able to draw customers by offering whatever cash it raised from sales to customers through the ‘cash on PoS’ facility. “Allowing customers to withdraw cash by swiping their debit cards at PoS machines has become a regular practice,” said Biyani. The Central-SBI co-brand card is second by SBI and Future Group, after FBB-SBI StyleUp card introduced in partnership with Big Bazaar, and targeted at the value conscious consumer looking for affordable fashion. According to SBI Card CEO Vijay Jasuja , the FBB-SBI tie-up with three lakh cards is the largest in the industry. He said that the bank expects to add five lakh new cardholders through the partnership.