Ankit Kedia · PhillipCapital
partialChallenges in executing zero-based merchandising, behind target of 100 stores by Dec.
Yes, you're right. ... we realized that three, four things go together. ... the physicality of the change and simultaneously the question of training the trainers ... took time. ... I'm pretty confident we should get back to the earlier plan, albeit with a lag of a quarter or a few months.
Ankit Kedia · PhillipCapital
partialWill zero-based merchandising cover COCO stores by end FY26?
I don't have a number to give you right now, but the objective and endeavor would be to cover Pareto turnover contribution stores within such a long time period. ... top 50% turnover, which is what 250, 300 stores ballpark gets us there, is where we want to first wrap it up.
Ankit Kedia · PhillipCapital
directExiting entry-level price points like INR 499, 599, 699 – impact on customer?
No, Ankit, very perceptive question. ... it will be depending on consumer cohort. ... for a store that I have, let's say, in Meerut, I will have a very different, but they will still have three price points ... where maybe the 599 becomes now the critical price point.
Ankit Kedia · PhillipCapital
directWhat drove volume growth turning positive in Q3?
Three things. ... volume growth is across channels ... we have also leveraged and obviously set up the entire execution calendar for EOSS much better. ... some of these areas ... where consumers are looking for value.
Videesha Sheth · Ambit Capital
directNo store additions this quarter – reason and future momentum?
The net additions have been flattish. That doesn't mean that we have not added. Gross additions have been there ... but we have also closed unprofitable stores. ... It will be there for another quarter or so, but then the gross additions will keep happening. Eventually, net will start taking over.
Videesha Sheth · Ambit Capital
directWill net store additions return to 30-40 per quarter?
Yeah. Absolutely. 30-40 on the EBO front, including franchise, for sure.
Videesha Sheth · Ambit Capital
partialRevenue contribution of Pareto stores for zero-based merchandising?
I don't have ready numbers, Vidisha. I'm sure the team can share it with you. But the top 100 stores that we will want to first attack should be contributing to about 25% of our turnover.
Gaurav Jogani · JM Financial
directWhat drove gross margin expansion YoY despite higher EOSS and volume growth?
The overall gross margin has expanded by 17 basis points. This has come on account of ... tightening of the entire way we source the product as well as in-house manufacturing. ... the sale from discounted products has been slightly on the lower side versus year on year.
Gaurav Jogani · JM Financial
directImpact of increasing franchise stores on gross margins?
No, you're right in your thinking. Mathematically, that's how it works. ... we look at it basically at an EBITDA level, right? So at that level, basically, both of these get neutralized, and their franchise is significantly more accretive.
Gaurav Jogani · JM Financial
partialPerformance of Power stores and future plans?
The numbers show that there is progress happening. Are we satisfied with where we are? No. ... the prime driver will be Trading Density.
Sameer Gupta · India Infoline
partialBata brand contribution trend pre-COVID vs now?
I might not have the numbers handy, but Samir, we can definitely see how I can share it. ... the premium as well as the sneaker part has outgrown, and the massy piece, which was the 500 and thereabouts, is what has begun to erode contribution-wise.
Sameer Gupta · India Infoline
declinedConsumer-level growth adjusted for franchise mix?
I don't have an answer right now. We will try and get back to you.