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Landmark Group introduces cash-and-carry furniture to spur growth

The home furnishing chain, which currently has 50 stores in 27 cities, also cited longer replacement cycles as reason for low sale of durable big-sized furniture such as three and five-seater sofa sets. The cash-and-carry category will sell small furniture options such as side-tables and petite chairs for nooks and corners of rooms to create impulse shopping.

, ET Bureau|
Updated: Dec 11, 2019, 07.56 PM IST
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BENGALURU: Landmark Group-owned furniture retailer Home Centre is facing pressure with slow sales growth impacted by overall economic slump which has decreased discretionary spend this fiscal. Home Centre, the sister store of Lifestyle, is relooking its furniture business and is introducing a cash-and-carry furniture category, which will sell small-sized products to create impulse buying behavior and increase sales, said Vasanth Kumar, managing director of Lifestyle International.

“Our furniture segment is witnessing low single digit growth than the rest of the categories in our business. People are postponing purchase of long-term hard furniture unlike small household items such as textiles and vases or even apparel,” added Kumar.

The home furnishing chain, which currently has 50 stores in 27 cities, also cited longer replacement cycles as reason for low sale of durable big-sized furniture such as three and five-seater sofa sets. The cash-and-carry category will sell small furniture options such as side-tables and petite chairs for nooks and corners of rooms to create impulse shopping.

This move from Home Centre comes at a time when Ikea, the world’s largest furniture retailer, recently reported a record revenue crossing Rs 400 crore in FY19 from its maiden store opened in Hyderabad last August.

About three-fourths of India’s furniture industry is controlled by standalone stores and neighborhood carpenters. However, about half a dozen ecommerce players, including Flipkart and Amazon, have recently entered the USD 30 billion furniture industry in India, fragmenting the market.

Mumbai-based furniture marketplace Pepperfry reported losses for FY-19 in a regulatory filing despite adopting the omni-channel route to increase sales. Bengaluru-based online furniture player Urban Ladder has hit a rough patch due to top level management exits and inability to raise funds. There is also competition from second-hand and furniture rental platforms driven by net-savvy and highly mobile young consumers.

“We are also looking at new categories within the cash-and-carry segment which can negate hard and big furniture consumption and launch it by 2021,” added Lifestyle’s Kumar.

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