Future Retail Ltd

Last modified by Asif Farooqui on 2021/03/29 11:48

Contents

Company Overview
Businesses
- Hypermarket & Supermarket
- Lifestyle Consumer Electronics
  - Ezone
Industry Overview
Financial Highlights
References

Company Overview

Future Retail (NSE:FRETAIL) operates some of India’s most popular retail chains that inspires trust through innovative offerings, quality products and affordable prices that help customers achieve a better quality of life every day. The company serve millions of customers in more than 400 cities in every state of the country through digital platforms and over 1500 stores that cover over 16 million square feet of retail space.¹

Big Bazaar, its flagship chain is regularly ranked among the most trusted retail brands in the country. The company's small store neighborhood retail chains, EasyDay Club and Heritage Fresh operates closer to the home of customers and offers member-customers a range of services.

Businesses

Future Retail makes every effort to delight its customers, tailoring store formats to changing Indian lifestyles and adapting products and services to their desires.²

The company operate some of India’s most popular hypermarket and home solutions retail formats. Across value and lifestyle segments, its multi-format retail strategy caters to various consumption needs of a wide cross-section of Indian consumers.

The company's business is well capitalized to propel pure retail growth momentum. The company believe the Indian consumption story is intact and the combination of consumption and investment driven growth will power its success. The company aim to maintain its focus on increasing consumption demand through innovative customer engagement activities.

The company aim to continue on its growth path through a combination of realization efficiency and space expansion. The company's aim is to maintain the momentum of topline growth through continuous efforts to increase store efficiencies and productivity as evident in improved.

Hypermarket & Supermarket

The hypermarket and supermarket business is led by Big Bazaar, Big Bazaar GEN NXT, HyperCity, Foodhall, fbb, Food Bazaar, Easyday Club and Heritage Fresh. The company operates more than 1,500 stores in over 400 cities and towns across the country.³

Big Bazaar

Big Bazaar is not just another hypermarket; it caters to every need of your family. Where Big Bazaar scores over other stores is its value for money proposition for Indian customers.⁴

The company guarantee that at Big Bazaar you will definitely get the best products at the best prices. With the ever-increasing array of in-house brands, it has opened doors in the world of fashion and general merchandise, including home furnishings, utensils, crockery, cutlery, sports goods and much more at prices that will surprise you. And this is just the beginning.

Easyday Club

Easyday is a convenient neighborhood store that offers refreshing shopping experience to its customers to shop their daily household essentials. It is designed on a simple principle, of being a “ Pados ki Dukaan”, that understands shoppers and their needs. Not only it ensure good shopping experience but also helps customers save money while they shop. Store size ranges from 2,500 sqft to 5,000 sq ft. and offers thousands of products that include groceries, personal care, household essentials, toiletries and more. The neatly organized product shelves, hygienic ambience, transparent pricing , well appointed staff and quick billing makes everyday shopping experience a lot more fun and interesting.⁵

Easyday became part of Future Group portfolio after the strategic partnership that took place between Future Group and Bharti Retail in May 2015.

Fashion at Big Bazaar (fbb)

fbb, India’s fashion hub is redefining affordable fashion since 2008. From elegant office wear to daily essentials, from versatile ethnics comfortable home wear to stylish new range iof atheleisure , fbb curates exclusive designs for its audience under it's own private labels. With its mission to make India Thoda aur stylish, fbb is a popular youthful brand that offers refreshing fashion trends at pocket friendly prices. The brand has strong presence across all metro cities, mini metros and also penetrates well in tier II cities.⁶

Foodhall

Foodhall, A premium lifestyle food superstore, Future Group’s ambitious venture, is a pure gastronomical delight. Latching on to the love for global cuisines, Foodhall is an answer to every foodie’s inner epicure. Launched in May 2011, Foodhall is a one-stop destination for a well travelled urban consumer who understands the nuances of gourmet cooking. An eye-appealing exotic store captures the novel concepts from around the world on one platter. With an aesthetic mix of Indian flavors with the west, this specialty store is a den of discovery - of the finest global foods and ingredients.⁷

Foodhall appeals to every food connoisseur with its custom-made gift hampers, monthly thematic festivals, beautiful display of fruits and vegetables, a spice station, live demo kitchen and fresh sampling of ingredients in the best possible combinations.

These make shopping at Foodhall an enriching experience. A perfect blend of culinary presentation and ingredients in Foodhall is at par with any international gourmet food store. It has an extensive global variety in every category – the offerings range from Tomatillo (Green Tomatoes of Mexico) to gluten-free breads such as pizza dough, bagels, to range of super-food options such as Greek Yoghurts, fat-free organic milk, Tofu, gourmet chocolates, oils and vinegars, smoked salmon, mock meats, specialty cold cuts, teas, fresh truffles and various food delights including a variety of Indian foods. Currently Foodhall is present in Mumbai, Bengaluru, New Delhi and Gurgaon.

Heritage Fresh

Heritage fresh is a reimagined neighbourhood food and grocery store that is driven by local communities and serves a modern, personal and Indian shopping experience to its members. It is designed to create an engaging experience for the consumers and to cater to their everyday requirements, while delighting them with great value propositions. Heritage Fresh offers a wide range of fresh fruits and vegetables, besides having an impressive assortment of staples, household items, daily groceries and more. Store sizes range from 1800 sq. ft. to 2800 sq. ft. The stores are well organized, hygienic, with items neatly and conveniently displayed. The company's courteous and well-appointed staff are present for a seamless shopping experience and quick check out process.⁸

Heritage Fresh became part of Future Group in November 2016.

WH Smith

WH Smith, recently acquired by Future Group, is UK'S most popular stationer, bookseller, and newsagent. WH Smith stores focus on true convenience and providing something for every customer. Stores are designed to accommodate a range of shopping patterns & behaviours; from someone who wants to get in and out as quickly as possible, to someone who wants to take the time to browse its extensive range of products. WH Smith are located at the IGI airport, universities, corporate parks and the Delhi Metro.⁹

Lifestyle Consumer Electronics

Ezone is an experienced–led lifestyle format that brings together the best in national and international consumer electronic and durables brands in a family – centric environment.¹⁰

Ezone

Founded in 2002 Ezone is present across India in the form of stand-alone stores as well as at Group format stores such as Big Bazaar, HomeTown and Central. It houses the best of national and international electronics brands for a range of product categories such as Audio, Accessories, Communications, Computing, Home Entertainment, Home and Kitchen Appliances, Imaging, Personal Entertainment & Gaming.¹¹

At Ezone, we are committed to offering lifestyle solutions depending on the needs of our customers. and offer the best price on the latest products, with the right buying assistance. Ezoneonline.in an online extension of our brick n mortar stores offering multiple convenient payment options including Cash on Delivery and free home delivery/shipping.

Further, services such as Easy Exchange, Extended Warranty, Instant Finance, Masterclass, Data Transfer and more ensure we are Together Forever

Industry Overview

As per industry reports, India’s retail market size is pegged at ~USD822bn, of which the organized segment (excluding e-commerce) accounts for about 11% of the overall retail market as of FY19. This share is expected to increase to ~16% over the next 5-6 years, with the organized retail market growing at a CAGR of ~20%. Interestingly, over the last five years, the organized retail market grew at ~19%, increasing its penetration from 7% to around 11%.¹²

The target market of the Company, which mainly comprises of low to high level income individuals, continues to expand more significantly. Based on external research, the company believe FRL with its wide assortment of products across Food, Fashion and Home through large format stores and its targeted grocery assortment in the small format stores is on the path to capture a higher proportion of the growing modern retail share.

Financial Highlights

Kishore Biyani-led Future Retail Ltd on Thursday reported a 16.72% decline in consolidated net profit at ₹164.56 crore for the third quarter ended December.¹³

The company had reported a net profit of ₹197.60 crore in October-December quarter a year ago, Future Retail said in a regulatory filing.

Total income fell 3.07% to ₹5,208.89 crore during the quarter under review from ₹5,374.12 crore in the corresponding quarter last year.

Total expenses were 2.58% lower at ₹5,042.46 crore as compared with ₹5,176.52 crore a year ago. Future Retail has a network of 1,500 stores in over 400 cities. Its hypermarket and supermarket business is led by Big Bazaar, Big Bazaar GEN NXT, HyperCity, Foodhall, fbb, Food Bazaar, Easyday Club and Heritage Fresh.

Future Retail Q3 loss at Rs 846.92 crore, revenue down 71% to Rs 1,506.87 crore ¹⁴

February 10, 2021; Future Retail Ltd on Tuesday reported a consolidated net loss of Rs 846.92 crore for the third quarter ended on December 2020 as business operations continued to be impacted by the pandemic during the quarter. The company had posted a net profit of Rs 164.56 crore in the October-December quarter a year ago, Future Retail Ltd (FRL) said in a BSE filing.

Its revenue from operations was down 71 percent to Rs 1,506.87 crore during the quarter under review as against Rs 5,193.19 crore of the corresponding quarter last fiscal. "COVID 19 pandemic has had a significant impact on the business operations and the financial results of the Company for the quarter and Nine months ended December 31, 2020, Future Retail said in a statement.

Expenses of FRL, which operates retail stores such as Big Bazaar, fbb, Foodhall, Easyday and Nilgiris, were at Rs 2,391.43 crore as against Rs 5,042.46 crore, down 52.6 percent.

"The impact of COVID-19 pandemic on the overall economic environment being uncertain may affect the underlying assumptions and estimates used to prepare the company's financial results, whereby actual outcome may differ from those assumptions and estimates considered as at the date of approval of these financial results, the company said.

FRL, whose board in August last year approved the amalgamation of FRL along with other group companies with Future Enterprises Limited to facilitate Rs 24,713 crore deal to sell the retail and wholesale businesses to Reliance Retail, owned by oil-to-chemical conglomerate Reliance Industries Ltd, said it will continue to closely monitor any material changes to future economic conditions. Shares of Future Retail Ltd on Tuesday settled at Rs 80.50 on BSE, up 9.97 percent from the previous close.