Sri Lanka’s ODEL to build new mall; integrate with Softlogic retail
COLOMBO (EconomyNext) – Sri Lanka’s ODEL Ltd, will build a new mall in it prime property in Colombo and also integrate closely with the parent Softlogic group which will cut overheads and boost brand availability, Chairman Ashok Pathirage said.
Softlogic, which is already has a several premium brands in its retail operations bought into ODEL last year.
"We are in the phase of reducing the overheads by synergizing and consolidating our retail base by eliminating any cost-duplication or excess resources," Pathirage said in a statement.
"The increase in activity levels and cost-sharing approach post consolidation has absorbed and mitigated fixed costs."
Pathirage said ODEL had a local and foreign customer base made up of middle and high income segments.
Pathirage said Mothercare and Dockers branded goods, which are sold by Softlogic had already been placed in ODEL adding to Levis and Nike.
"[We] are also keen to make available Mango, Charles & Keith and Giordano at Odel’s in near future," Pathirage said.
"We would also house many other leading local brands such as Avirate, Yoland Collections and Linen & Life."
The interior of the department store was being re-designed. At its flagship store at Alexander Place, a new mall was being planned on vacant space.
"Top German designers and architects are developing the blue print of this mall," he said.
"This mall will feature an extensive retail space to house some of the best known brands both locally and internationally to cater to local demands and international tourists."
ODEL interim accounts showed that profits rose 130 percent in the December 2014 quarter from a year earlier, helped by lower distribution, administration and finance costs and some revenue gains.