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Wednesday, 28 November 2012 02:48 - - {{hitsCtrl.values.hits}}
Softlogic Holdings Plc is forging ahead with aggressive expansion in its retail business in a bid to ride on the expected rise in people’s income and regional tourist inflow.
Having opened the global brand Mothercare store at Duplication Road on Monday as a franchisee of the UK firm, Softlogic will shortly open a mega multi-brand international store at Havelock Road.
The planned store will market all lifestyle and consumer electronic brands, which Softlogic represents in Sri Lanka.
They include Nike, Levis, Giordano, and Mango, apart from consumer electronics and IT products including Nokia, Dell, Panasonic, Samsung, Onida, Cornell, Ignis, and Candy. Softlogic has its own laptop brand, ‘Maxmo,’ whilst introduction of Apple will be a new move.
A new addition to Softlogic portfolio and the new store will be world class wristwatch brands.
“As Sri Lanka progresses towards a per capita income of $ 4,000, disposable income and preference for global brands will increase. Through our aggressive retail push – ‘bringing best of brands with best deals’ – we are taking early positions to serve this growing demand,” Softlogic Holdings Chairman Ashok Pathirage said at the opening of Mothercare store on Monday.
“We are also targeting South Asians visiting Sri Lanka, especially Maldivians, who have a greater liking for global brands,” he added.
Softlogic’s retail arm continues to be one of the key thrust areas for the Softlogic Group. Other sectors which Softlogic has interests include healthcare, financial services, and leisure.
The retail sector revenue of Rs. 4.6 billion accounts for 21% of Group’s total and reflected a 129% increase in FY12 from the previous year. Earnings before interest and tax grew by 90% to Rs. 457 million in FY12. The retail sector’s total assets amount to Rs. 4.8 billion and liabilities were Rs. 4.3 billion whilst last year capital expenditure was Rs. 137 million.
It plans to have a retail footprint of 250 stores in the short to medium term whilst during the second quarter, the 156th store was opened. Consumer electronics outlets rose by 61 to 124 as at 31 March 2012.
In the company’s 2011/12 Annual Report, Softlogic Chairman Pathirage said: “Rapid per capita income growth which resulted in Sri Lanka graduating from a low income to middle income status nation is expected to create further significant growth opportunities in the retail sector. Given the relatively low penetration rates of branded products in the Sri Lanka market, the further increase expected in per capita income, and the opportunity to establish the country as a regional retail hotspot, the future of the retail arm is expected to look bright.”
