Praxis Home Retail optimises operations under “small is beautiful” initiative

Praxis Home Retail Limited, the owner and operator of Home Town, a well-known chain of home retail stores across India, has concluded a significant business optimisation exercise under its new maxim, “small is beautiful.” This initiative aims to leverage the advantages of operating on a smaller scale, such as increased agility, enhanced customer experience, and optimised store and warehousing networks, all of which are expected to drive profitability and create value across the business.

“In order to realise our goal of ‘small is beautiful,’ we focused on logistics and warehouse optimisation, improved inventory management, and building strong partnerships with leading furniture manufacturers and suppliers in the country,” said Ashish Bhutda, Deputy Chief Executive Officer of Praxis Home Retail Limited.

A key element of this initiative is the company’s new product sourcing model, wherein Home Town stores now function as a marketplace for suppliers to showcase and sell their products. This shift is expected to reduce inventory costs by over 40-45%, while also providing faster fund rotation for suppliers. Notable manufacturers such as Space Wood Furnishers Private Limited, Furniture Kraft International Private Limited, and ABM Wood Decor Private Limited are already participating in this program.

Additionally, Praxis Home Retail has optimised its store network, concentrating on fewer markets where it can service a larger customer base with quicker delivery times, a more tailored product mix, and an enhanced shopping experience. The company has also streamlined its head office operations, reducing overheads without compromising on customer experience or service delivery.

As part of the “small is beautiful” strategy, the company is now leveraging data analytics to forecast demand more accurately, track performance, and make data-driven decisions. This approach enables Praxis Home Retail to adapt swiftly to market changes, experiment with new ideas, and implement innovations without the bureaucratic challenges that often accompany larger businesses.

The company is already seeing positive results from these initiatives and is optimistic about returning to profitability as early as October 2024.

Home Town, launched in 2007, has established itself as a trusted brand in the home improvement sector, operating large-format retail stores in 19 cities across India, including Bhubaneswar, Nashik, Vishakapatnam, Guwahati, Chennai, Vijayawada, Patna, Lucknow, Raipur, Mumbai, Hyderabad, Nagpur, Siliguri, Kolkata, Ahmedabad, Pune, and Aurangabad. The brand also maintains a strong presence online through its e-commerce site and mobile app, with products available on leading online marketplaces. Home Town is owned and operated by Praxis Home Retail Limited.