Retail chains & restaurants shut stores as consumption slows

The Pantaloons departmental chain run by Aditya Birla Fashion and Retail Ltd (ABFRL) has exited over 40 stores in tier-two and smaller markets in this period. Most Shoppers Stop stores that have been closed are at high-street locations because they «have lost that critical mass» and the company is trying to move them inside malls.

Jubilant FoodWorks Ltd, which runs multiple quick service restaurants, said there is a decline in dine-in orders for pizza chain Domino's stores on the high street, even though footfall in mall outlets is robust.

Titan Co. said it has changed its strategy for ethnic wear retail chain Taneira and will only focus on cities and large towns, moving away from expansion in smaller towns. Retailers such as Lifestyle International and Arvind Fashions Ltd said they are focussing primarily on malls for their new stores.

Chief executives said these closures are due to retailers overstating the potential of smaller towns during the post-Covid 'revenge shopping' boom and most high streets losing out as footfalls tend to be greater in malls during a consumption slowdown.

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«Most retailers have overestimated the potential of smaller towns with consumption in these markets continuing to be subdued,» said Devaranjan Iyer, chief executive of department store chain Lifestyle International.



Longer Recovery Time in Towns
«Standalone stores in main shopping streets are fine, but a lot of expansion has happened in other places. Getting the location right is extremely important.» ABFRL