New Delhi: Currently Hamsard sources 85% of its goods from UK and the remaining from Asia, mainly India and China. It, however, plans to change the sourcing ratio of Asia and the UK to 90:10, which would reduce its sourcing costs.
Lower costs would enable its products to be competitively priced and also improve store margins, the company said.
The turnaround strategy, according to an official spokesperson includes, refurbishment of stores, bringing in more variety and a competitive pricing mechanism.”
The company has set up a 10-member team in India, China, Sri Lanka and Bangladesh to oversee sourcing operations for UK stores.
Hamsard acquisition is strategic in nature and apart from providing a ready market from the Alok Group’s garment and home textile business, it would help the group to penetrate in the UK retail market and give an opportunity to introduce the similar store concept in India as well, he added.
The company plans to increase the sale of jewellery and shoes which have higher margins but currently constitute a small part of total sales. It intends to introduce new items such as bed linen and discontinue other slow moving products.
The company is targeting 60% of revenue at Hamsard stores from men’s and women’s wear, 15% each from youth and kids wear and 10% from accessories like shoes and jewellery.