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V-mart plans to add 25 stores in smaller cities in FY15

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Press Trust of India New Delhi
Last Updated : Apr 01 2014 | 4:46 PM IST
Multi-brand retail chain V-Mart plans to open up to 25 new stores in non-metro cities this fiscal, entailing an investment of Rs 50 crore.
The company, which has most of its stores at tier 2 and 3 cities, is also planning to enter into two new states -- Orissa and West Bengal -- this fiscal.
"We would add up to 25 new stores in our network this fiscal. Most of them would be in West Bengal and Orissa, where we are planning to enter this year," V-Mart Retail Chairman and MD Lalit Agarwal told PTI.
Moreover, V-Mart is expected to have clocked turnover of Rs 600 crore in the financial year 2013-14 with a growth of around 50 per cent, he added.
"We want to continue with a compound annual growth rate (CAGR) of over 30 per cent for the next four to five years and expand our network in the district level towns of the country," Agarwal added.
V-Mart, which is primarily in 'brick and mortar' format and gets 85 per cent of its revenue from apparels and fashion wears, said it is open to e-commerce.

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"It may be an additional source of revenue. We are thinking on those line but nothing concrete has happened till now," he said.
The company currently operates 89 outlets at 76 different locations with 7.2 lakh sq ft area, he added. It sells grocery at its 35 outlets and rest are into fashion retailing.
Last fiscal, the company had added 23 new stores in its network.
On being asked that whether V-Mart is facing competition from various online fashion retailers, claiming to get half of their tractions from smaller towns in next two three year, he said "it would be a distant dream for them".
The company would focus on its unique design, competitive price and features to expand its base in the smaller places. It has 17 private in-house labels and would expand its portfolio and moreover it would focus more on exclusive tie ups with fashion designers.
On the future outlook Agarwal said: " India has several tier 2 and 3 places specially at district level towns, which are untapped. We are going in all those virgin areas where no organised retailer has gone. We are targeting the youths and educated class there".
V-mart has a vendor base of 1,500 and employs around 4,000 people.

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First Published: Apr 01 2014 | 4:46 PM IST

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