Aditya Birla Fashion & Retail (ABFRL) has decided to downsize and rightsize the Indian franchisee outlets of US brand ‘Forever 21’ to make the lable profitable. ABFRL had acquired the retailing rights of Forever 21 in 2016 from Diana Retail, a wholly owned subsidiary of DLF Brands, through a slump sale of the business undertaking for 26 million US Dollar.
ABFRL had entered into a franchisee agreement with Forever 21 for the online and offline channels for the Indian market.
“Our goal is to turn positive in Forever 21 next year, which is the first landmark we have set for the brand,” Ashish Dikshit, business head at ABFRL, said at conference with investors after announcing the fourth-quarter results, according to a media report.
Dikshit said ABFRL will open more economically viable Forever 21 stores. “Both in terms of size and rental, and clearly the newer stores that we are signing are far more economically viable and more profitable”. ABFRL plans to roll out about 15 new 8,000 square foot to 12,000 square foot stores this fiscal.
– Apparel and Textile News, Apparel Talk, Indian Apparel
