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    One of India's top shoe makers says people shopping online have moved beyond discounts

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    One of India's top shoe makers says people shopping online have moved beyond discounts

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    Metro Brands is planning to add 260 stores over the next three years and the company is well on track to do that, said CEO Nissan Joseph.

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    Metro Brands believes that the convenience to shop online from anywhere anytime is now the key as compared to attractive discounts earlier.
    “Over the pandemic, e-commerce has become a convenience to shop, which is what you want to see as opposed to being a discount-led shopping event,” Metro Brands Nissan Joseph Chief Executive Officer told CNBC-TV18 on Tuesday.
    He, however, noted that post the COVID-19 pandemic, offline continues to do extremely well, implying consumers haven’t switched from offline to online shopping experience completely.
    Metro’s online business continues to grow at a 79 percent compounded annual growth rate (CAGR) over the last three years, he said.
    According to Joseph, one of the reasons the company has seen good earnings over the last few quarters is because of healthy traction on both offline and online channels, which is happening simultaneously rather than one substituting the other. He is confident that the e-commerce space will continue to grow but is equally excited about the offline business we are seeing.
    Metro Brands plans to add 260 stores over the next three years and the company is well on track to do that, he said. “The growth opportunities come from new store growth but also the fact that we are seeing productivity increases in our existing stores,” he said, adding that the company continues too look for opportunities to please customers in Metro, Mochi and Walkway stores.
    Motilal Oswal, in a note on the footwear sector, said that organised players are growing at 1.5 times the rate of the overall market. The brokerage noted that Metro Brands is consistently witnessing double-digit revenue and profit growth. It has a buy rating on the footwear brand’s stock with a target of Rs 1,000.
    Explaining the dynamics, Metro Brands' Joseph said, “There are three forces driving that disproportionate growth into the organized sector. One is the fact that more high streets and malls are coming alive which attracts organised retail. The second factor is that through the pandemic, some of the businesses that got hurt disproportionately were also the unorganised retail sector. The third fact is that as incomes rise, so do aspirations and as aspirations rise, people want to shop more often in an organised environment than in an unorganised sector.”
    For the full interview, watch the accompanying video
    Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
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