Realty slump hits home
The real estate slump, triggered by the financial crisis is seeing a rub-off effect on organised retailers in home retailing and home furnishing.india Updated: Jul 15, 2009 21:31 IST
The real estate slump, triggered by the financial crisis is seeing a rub-off effect on organised retailers in home retailing and home furnishing.
Pantaloon Retail, for instance, logged a 34.36 per cent fall in its June same-store sales, though its value and lifestyle retailing registered 8.07 per cent and 8.19 per cent growth respectively — the seventh monthly fall in a row.
Mahesh Shah, CEO, Home Town, told Hindustan Times: “There was a phase of real estate slump that we have seen, which has affected our business.” He added that things were looking better, and the company opened its 8th Home Town store in Kolkata in June.
Nilkamal group, which runs the ‘@home’ home furnishing and retailing stores, has also seen a decline in business over the past few months. Gautam Khedekar, general manager, project and logistics, @home said the company saw a 15 per cent fall in business in the second half of 2008-09.
Things may be on the verge of a recovery, though. Ashutosh Limaye, associate director, strategic consulting, Jones Lang LaSalle Meghraj, a real estate service firm, said demand for housing has picked up over the past one or two months.