Even if the accounting and business reporting in India is slightly different, it's obvious what's happening. Same-store sales are up 2.8%, but profits are down significantly. They are giving the 421 stores away to keep shareholders happy with same-store sales.
7 comments:
Excessive Discounting Strikes Again !!!!!!
Are you listening OPNAD????????
Top Concerns are that the operator community has given all the marketing leverage to the company. That company leadership seems much more interested in the stock price than the health of the operator community. The bodies representing the operators seem to be willing to go along with whatever the company says.
Discounting is NOT viable long term
The Marketing plan is not working. Company seems intent on going back to the days of being a "Discount House”.
#1 priority is our staffing and management. We can't operate without the management teams and we have made it too stressful for anyone to want to go into management. Management turnover is getting extreme. Our image is becoming negative by only focusing on transactions and not being able to pay the people to retain them because our prices are discounted way too much by marketing and GMA.
The Discounted pricing only puts into the customer's mind that our product is CHEAP and not worth regular price
"Discounting is NOT viable long term" ... But that's not managment's concern. They are in a constant panic over the current quarter's SSS results.
Their golden parachutes will take care of the long term.
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