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Pantaloons’ retail footprint, once a key growth engine for Aditya Birla Fashion & Retail (ABFRL), has entered a phase of consolidation.
After expanding aggressively to 431 stores in FY23, the brand has closed 66 outlets over the past two years, bringing its network down to 405 stores by Q1 FY26.
This marks the first sustained contraction in Pantaloons’ store base in nearly a decade, reflecting a strategic pivot away from rapid expansion toward store optimization, profitability, and brand efficiency.
Even as total retail area has stabilized around 5.7 mn sq. ft., the company appears to be rationalizing underperforming locations and resizing formats across Tier-2 and Tier-3 cities.
What It Means
- Portfolio rationalization: The store closures suggest a sharper focus on store productivity and profitability metrics rather than footprint expansion.
- Format and catchment recalibration: ABFRL is likely optimizing locations to strengthen brand positioning in high-performing catchments while exiting low-yield markets.
- Operational focus: With expansion plateauing, the next growth phase may come from smaller, digital-integrated, or value-format stores that improve overall return on retail space.
