Reference no: EM132856129
Case Study
The Group's domestic operations have continued to be the main driver of its revenues and profits, and garments, shoes and fashion accessories remain the main products of the Group.
In the domestic market, our products are sold through the numerous retail stores, consignment counters and internal and external online portal. In the multi-brand Padini concept Stores and single brand stores, our products are carried under the following brand names; Vincci, Vincci Accessories,
Vincci Mini, Padini Authentics, PDI, Padini, Seed, Miki, and P & Co, all of which are owned by the Group. All the aforementioned brands are widely known by Malaysian consumers and are easily available in the major urban shopping malls in Malaysia. In addition to those, the Group also utilizes a number of house brands to market the value-for-money merchandise that it offers for sale in its brands outlet stores.
The Group remained profitable in the financial year 2020 despite the challenging business climate arising from the covid-19 pandemic that is not only affecting Malaysia but globally, with lockdowns of varying degrees imposed by all affected countries. In Malaysia, all our outlets were closed from mid-March 2020 until mid-May 2020 due to the Movement Control Order (MCO), a preventive measure imposed by the government of Malaysia in response to the pandemic. Subsequent reopening of the outlets during the recovery phase of the MCO saw reduced crowds and controlled customer trolls in shopping malls. The retail industry experienced significant downturn and our business was similarly affected.
For the financial year ending 30 June 2020, the Group recorded consolidated revenue of RM1.35 billion, which represented a decrease of 24% over the previous year's revenue of RM1.78 billion due to the drop in sales resulting from the implementation of the MCO. In tandem with the lower revenue, profit before tax fell 51% to RM107 million from RM219 million in the previous year. The uncertainty in the global economies, trade war, currency volatility and the intensifying regional business competition have made the operating environment very challenging for most businesses even before the covid-19 pandemic outbreak. The still unresolved pandemic has put a pall to the Malaysian retail recovery outlook. (Source: PADINI Annual Report - June 2020)
Formulate appropriate business strategies for PADINI to sustain its business operation despite the challenges arising from the pandemic situation in the country Malaysia.
Formulate appropriate business strategies for PADINI to sustain its business operation despite the challenges arising from the pandemic situation in the country.
Subject Strategic Management