Author Topic: Raymonds - Renovation program is driving efficiency  (Read 2222 times)

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Raymonds - Renovation program is driving efficiency
« on: February 25, 2016, 06:40:02 PM »
Raymond's renovation program involves improving the physical infrastructure of a store, revamping the product portfolio and improving the service offering. Post-renovation, these stores have grown at greater than 20% on a same-store-sales basis. In some cases, the company decided to shut down the store.

The management expects investments to continue in the near future: Raymond will be investing in its apparel business over the next two-three years. The company will open new stores to scale up its presence (payback period of about 4 years), spend on advertising to strengthen the positioning of its brands, and improve its distribution network. In the medium-term, the management expects operating margin to expand as fixed costs decline as a proportion of revenue.

Raymond’s brand portfolio comprising Park Avenue, Raymond, ColorPlus, and Parx has been growing across all retail channels. Formal brands have grown at a faster rate than casual brands, while gross margins have been steady at 50%.