Hyderabad-based ZeroStock Retail is set to expand retail presence of its premium menswear brand Cornerstone in Gujarat. Having launched its first exclusive store in the state in Vadodara, Cornerstone will take the franchise route for expansion.
Launched in February 2008, Cornerstone has set up around 20 exclusive outlets across seven cities, including Vadodara, Kolkata, Pune, Hyderabad, Bangalore, Kochi and Jaipur. Nationally, ZeroStock is planning to expand Cornerstone's retail presence from 20 outlets to 95 outlets, with plans to have an additional 75 stores in the next three months.
Moving ahead from the stand-alone stores, in the franchisee model, the company proposes to set up 1,500 outlets across the country in the next three years, of which 300 stores are to be opened by the end of 2009.
Earmarking an investment of Rs 25 crore towards this venture, the company expects revenue of about Rs 350 crores in three years' time.
Detailing company's expansion plans, Ashok Mayya, CEO, ZeroStock Retail said: "We are looking at franchisees as part of our expansion plan in Gujarat. The suburban metropolis is seeing a boom in demand for fashion and up market menswear. We have thus increased our foray in the retail sector through this model. The targeted states for the first phase of expansion, include Karnataka, Andhra Pradesh, Kerala and Tamil Nadu, along with Gujarat and Maharashtra. We are especially looking forward to retail our brand through franchise in Gujarat."
Founded and run by Wharton MBA graduates, ZeroStock Retail launched Cornerstone with an aim to provide a range of men's formal and informal wear. Later on, the company will extend the offering to include other apparel like denim, as well as a range of footwear.