The Hindu Business Line : Future Group to restructure footwear retailing biz

Mumbai, Jan. 15 The Future Group-owned Footmart Retail Ltd, the 49:51 joint venture between Liberty Shoes and Pantaloon Retail forged in 2005 is getting reviewed with the possibility of a change in its shareholding pattern.

With intentions of restructuring the footwear retailing business, a new vertical is being set up to streamline the business going forward.

Speaking to Business Line, Mr Rakesh Biyani, Director and CEO (Retail), Future Group said, “We are considering new possibilities and there could be fresh opportunities under the joint venture. There has already been some amount of realignment within the business and there is now a new vertical for footwear retailing with streamlining of operations within the group.”

Currently, the Future Group has its footwear retailing format under the brand of Shoe Factory.

“The concept of Shoe Factory has not largely worked for us. We have now shifted our footwear retailing operations to a new office in Gurgaon,” states Mr Biyani.

Catering to the masses

With a turnover of Rs 110 crore, Footmart Retail will continue to straddle the mass-end of the market with shoes outsourced from a host of vendors and also from Liberty’s manufacturing facilities.

The ‘value for money’ shoe stores under Shoe Factory stock national and international brands for men, women and kids.

However there are no plans to enter the premium footwear segment in the future.

Considering the joint venture company had decided to launch a new premium format under the brand name of ‘Pairs’, plans to launch the same have now been shelved.

As Mr Biyani said, “We will be present in the value segment and there are no plans to enter the premium end of the footwear market.”

At the time of launching the joint venture company in 2005, Footmart Retail had planned to operate in two distinctive store concepts — while Shoe Factory would stand for value format, Pairs was expected to be an exclusive lifestyle format of stores.

The purpose behind forging the venture was to combine the retail expertise of Pantaloon with Liberty’s sourcing, merchandising and designing strengths.

Added Mr Anupam Bansal, Executive Director, Retail, Liberty Shoes, “While we would be continuing with the joint venture, talks are on how to restructure the company.

“The details of the restructuring are, however, yet to be finalised.”

Meanwhile, sources indicated that footwear retailing under the concept of Shoe Factory has not been a satisfactory venture for the Future Group.

More Stories on : Restructuring | Leather | Retailing

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