IndiaRetailBiz

Koutons Retail, Delhi-based fashion retailer, which offers a range of fashion products under apparel, accessories, and footwear catagories, mostly in value segment, has reported a healthy growth of 31.91 per cent in sales over previous year (Rs 1,046.68 cr vs Rs 793.68 crore). The consolidated net profit, however, grew by only 15.01 per cent from Rs Rs 69.15 crore last year (2007-08) to Rs 79.53 crore this year (2008-09).

The company, which markets its products, among others, under Koutons, Charlie Outlaw, Les Femme, Koutons Junior, K2ONE, FeeMe brands is looking at increasing the number of its stores from over 1,420 to 2,000, by the end of this financial year (31st March, 2010).

The company, which unlike many of its counterparts, operates with comfortable leverage is looking at expanding the network through additional debt. Since, Koutons prefers franchise model for expansion, it does not require much capital to expand its network. As such, it will raise capital through equity dilution only when it becomes necessary to do so.

Koutons is also trying to restrict expansion of its outlets as it wants to focus on converting existing stores into ‘family’ stores where all product categories (apparel, accessories, and footwear) are available under one roof. It will, therefore, consider increasing the size of some of its stores than to open new stores.

Koutons has also put its overseas expansion plans on hold until it is able to consolidate its position in the local market.

Koutons has in the past won several awards, including “Best Retailer Leadership Award 2008,” “Most Admired Fashion group,” “Value Retailer of the Year,” “Chain Store of the Year,” among others, while its Chairman DPS Kohli has won the “Most Admired Fashion Face of the year,” and “Brand Entrepreneur of the Year” awards.