Clothing retailer Bestseller India witnessed a fall in the number of footfalls in the last 4-6 quarters, Vineet Gautam, Chief Executive Officer, Bestseller India, told Moneycontrol in an interaction.
The company has also become cautious on the capital expenditure front. However, he is hinging hopes on the corporate tax cut.
"Cut in the corporate tax will improve the overall economy.Once things are good for the country it will improve the sentiment and we will see more customers in our stores," he said.
Despite the slowdown, Gautam said that the company usually has a target of opening 25-30 stores every year and added that it is on track for FY20 as well.
"Wherever good shopping malls are coming up, we will be present there,” Gautam said.
Bestseller is an international, family-owned fashion company with 20 brands, including ONLY, Vero Moda and Jack and Jones. Its products are available online and in thousands of stores across the world.
Speaking about the overall slowdown in the retail sector, Gautam said that that first quarter (Apr-Jun) of FY20 did witness a slowdown in business but added that the sales in the last 45 days of the current quarter (Jul-Sep) have been "encouraging".
When asked on the upcoming festive season offers, Gautam said apart from normal discounting they do not have any special offers.
However, he is bullish about the sales target and expects double digit growth in the current financial year.
On the benefits of corporate tax rate cut, Gautam said: "Larger benefit of corporate tax is for large organisation which were in the higher tax bracket and majority of the retail fashion companies were paying minimum tax."
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