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| Exchange Disseminated Time | Vishal Retail Ltd has informed BSE regarding the Disclosure of material development / information.
"The Company is a prominent player in retail industry having PAN India presence and is a common name with the masses. In hard time when many retail players are battering for survival due to hard hit stroke of global recession, the Company in order to reduce the impact of the slowdown has quickly responded to shift focus on its core competencies.
The Company plans to espouse measures like reposition, relocation, consolidation, hive-off nonviable business formats / business line to reduce the cost and give away with the ineffective outlets. As part of execution, to sustenance the shift in focus, subsequent to the approval from the statutory Authorities for de-sealing of Non Operational Floors of the Prominent Store situated at Rajouri Garden, we have merged & consolidated Operations at the other nearby specialized stores namely Kirti Nager, Moti Nager, Prashant Vihar, Meera Bagh with the Prominent Store at Rajouri Garden to achieve economies of operations and provide a Single stop solution for all the customers. Similar arrangements have been carried out at the store situated at Belanganj, Agra by merging operations at the Store situated at Agra, Fatehabad Road, & the operations at Lucknow, Latoosh road has been consolidated with our Store situated at Lucknow, Gomit Nagar. In current market scenario, the Company may enter some more consolidation by way of relocation of few stores, as already done in cities like Karnal by relocating the erstwhile Store at Village Kambohpura, Karnal to Super Mall, sector-12, Karnal, Haryana.
Further, the Company is now focussing more on its Core competencies i.e. retailing, thereby have taken innumerable steps such as, have outsourced manufacturing operations to bring down operational costs and resultantly closed all factories except one at Manesar. Also, informed earlier, the Company have merged our Regional Warehouses with Central Warehouse at Delhi & NCR. Our Warehouse at Wazirpur, Gurgaon having an area of 2,25,000 Sq. Ft. has become operational. The Company have also identified a nearby warehouse to consolidate all our Warehousing Operations at Central Level except few Regional Warehouses in East & West Zone of the Country. The Company has mutually decided to discontinue the non format entered with HPCL and other business associates. Simultaneously the Company also opened few the stores, during the last few weeks, at locations like Buxar, Ratlam, Ganganager and Ajmer and proposes to open few stores shortly.
The Company are also working in collaboration with the local vendors on shop in shop basis to serve our customers better by providing them better portfolio of products. This move would also enable the Company to maintain good cash inflows by investing the proceeds to supplement the growth in core areas.
Further, to meet the ever green demand of our FMCG customers, the Company are entering into back end agreements with Regional FMCG Suppliers, whereby Regional suppliers would be directly meeting our requirements at the store level. This will enable the Company to cut down Inventory koarding cost, Logistics Cost & thus to reduce the overall expenditure and also meet the demand of customers." |
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