Loot India May Shut Unviable Stores

Daily News & Analysis:

Loot India Ltd, which runs The Loot chain of multi-brand discount-format stores, is looking to either shut down non-performing stores or taking them over from franchisees.

Jay Gupta, managing director, said the retailer recently took over 5 stores from franchisees when it found them unviable and then turned them around. “After we took over the stores, they are showing better results. It is actually the mismatch created by the franchisee or their lack of contribution. We may shut down 2-3 unviable stores, but this is not due to lack of footfalls,” Gupta said.

Of its 98 stores, 65 are run by franchisees. “Of them, 50% are doing very well, 20% are average performers while 25% are below average. We plan to correct 5% of these 25%,” Gupta said.

Loot India has also drawn up certain criteria for choosing its franchisees for future stores.