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Pantaloons, part of Aditya Birla Fashion & Retail (ABFRL), has more than doubled its retail area over the last eight years - rising from 3.2 mn sq. ft. in FY17 to 5.7 mn sq. ft. by FY26 (Q1).
The company’s most aggressive expansion phase occurred between FY21 and FY23, when total retail space grew over 40% year-on-year, driven by strong post-COVID recovery and store openings across Tier-2 and Tier-3 markets.
However, since FY24, the pace of expansion has noticeably slowed, with growth decelerating from 42% in FY23 to just 16% in Q1 FY26, signalling a shift from footprint addition to productivity and profitability focus.
What It Means
- Shift in Strategy: The slowdown suggests Pantaloons is entering a consolidation phase, prioritizing same-store growth and operational efficiency over new-store rollouts.
- Focus on Tier-2/3 optimization: With saturation in key metros, growth is now more catchment-driven, leveraging analytics to improve store-level throughput.
- Omnichannel Integration: ABFRL’s wider push toward digital commerce and hybrid store formats likely moderates physical expansion but enhances long-term reach.
