In continuing moves to clip losses and streamline operations at the Mom & Me chain, Mahindra Retail Pvt. Ltd is to down the shutters at 25 stores by the end of March, while also making sweeping changes to its senior management team and expansion model, as per unconfirmed reports.
Following the replacement of K Venkataraman by Prakash Wakankar as CEO in September 2014, Mahindra Retail has embarked on a stringent programme to trim overheads and close unviable stores across the country. In addition, the company is also reported to be reworking its store rental agreements at several locations, to move towards revenue-sharing arrangements.
The company which has 115 Mom & Me stores across the country, will now open most of new stores through franchises; 104 of its stores are currently company-owned. Wakankar was quoted as saying that he expects the company to post a revenue of Rs 250 crore by March 2016.
In addition, the company is also expected to strengthen its online business, following the acquisition of online kids wear retailer BabyOye in February. The company is hoping to leverage the expertise of group companies such as Mahindra Internet and Mahindra Logistics to build a robust omni-channel structure.
Mahindra Retail reported a loss of Rs.114 crore on a revenue of Rs.206 crore for the year ended March 2014, according to documents available with the Registrar of Companies.
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