Tata exits footwear business
Tata Group’s trading arm Tata International is closing the remaining six Tashi footwear stores and exiting the business.
The company plans to focus resources and efforts on branding and distribution instead, it says.
Tashi was established in 2010 with the assumption that a large portion of its offer would be sourced from the company’s own factories. However, the company sourced less than 10 per cent only from its factories with the rest coming from other suppliers.
“At the moment, we are evaluating the branding and distribution model over retailing. Should Tata International pursue this route, out footwear brands earlier retailed from Tashi stores would be then distributed through multi-brand outlets,” said MD Noel Tata.
India’s weak economy and high inflation have slowed the growth of retailers, reflected in store closures.
Retail company Mahindra, which runs store chains Mom & Me and Beanstalk, says it will slash its store network by more than 10 per cent.