Annual Report 2010-2011 - Colombo Stock Exchange

Sector Review - Retail
The Retail Sector operates the Arpico Supercentres,
Superstores and a network of showrooms and also provides
interior decorating solutions for institutions. During the past few
years this sector has been a key growth oriented arm of the
Group. The Sector performed very well in the year under review
increasing its turnover by 21% and profitability by 61% when
compared to the previous year. This demonstrates the potential
of the retail industry, in Sri Lanka, for future growth.
The steady improvement of the economy in post war Sri Lanka
is also having a positive sentiment on consumer confidence,
which has helped drive retailing in the Country. This positive
trend is expected to continue in the coming year as well and
should have a positive impact on the performance of this
Sector.
Retail Sector Performances
Rs. Mn.
12,000
10,000
8,000
6,000
4,000
2,000
0
06/07 07/08 08/09 09/10 10/11
Net Turnover Operating Profit
Rs. Mn.
900
750
600
450
300
150
0
The Sector is represented by Richard Pieris Distributors
Limited, Arpimalls Development Company (Pvt.) Limited,
RPC Retail Developments (Pvt.) Limited, RPC Real Estate
Development (Pvt.) Limited and Arpico Interiors (Pvt.) Limited.
Richard Pieris Distributors Ltd.
Richard Pieris Distributors operates the well-known Arpico
chain of Supercentres, Super Stores and Showrooms islandwide.
The network retails a wide array of fast moving consumer
goods (FMCG), household goods, including furniture &
electronics, and offers a host of value added services through
its eleven super centres/stores, twenty six showrooms, five mini
stores and one furniture outlet.
The turnover and profitability of the Company improved steadily
compared to the previous year. All key product categories
including FMCG, household goods, furniture & electronics
recorded a steady growth in business during the year under
review. These positive trends are expected to continue into the
coming year as well.
The Company opened its eleventh large format retail outlet
in the town of Wattala with a grand opening amidst a large
gathering of invitees in December 2010. This outlet, which is in
excess of 50,000 square feet can comfortably park 150 cars,
and is arguably the most environmentally friendly retail store
as of date. The outlet has become the focal point in the town of
Wattala and has fast become a destination where thousands of
people congregate on a daily basis.
The Company also commenced business operations in five
mini stores in the Central Province, a furniture outlet in Nawala
and a showroom in Dambulla in the year under review. This has
further helped enhance the volume growth of the Company.
Customer convenience has enabled the Arpico Supercentres
and stores to gain a competitive edge over its rivals. All super
centres and stores have ample parking space, wide aisle space
for easy shopping and state-of-the-art cool rooms to provide
fresh products. We continue to focus on improving levels of
convenience and service.
15
Annual Report 2010/2011 | Richard Pieris and Company PLC