Future Group will lower prices and offer discounts as it looks to use the launch of the Goods and Services Tax regime to bring new customers to its stores.
The retailer will cut prices of its in-house brands from July 1, on products where the tax rates have been reduced, Kishore Biyani, the chairman and chief executive officer told BloombergQuint in an interview. The group that runs India’s largest hypermarket chain Future Retail Ltd., has in-house brands in personal care, home care, and foods segments. Rates on several daily-use items will come down under GST.
Most manufacturers have agreed to pass on cost savings to Future Retail, and the retailer, in turn, plans to offer discounts in the range of 2-22 percent.
Future Retail will run a sale from midnight to 2 am on July 1 and will keep its prices lower for the next few weeks. “We will be the lowest in terms of prices in the country for the next few days, rather few months I would say,” said Biyani.
Future Group is well-positioned to increase its customer base post the implementation of the new indirect tax regime, added Biyani.
We feel confident that a new set of consumers will come into our fold.Kishore Biyani, Chairman And CEO, Future Group