Citykart capitalises on rural India's move to organised fashion retail

By

Isabelle Crossley

Published
Jul 2, 2018

The value fashion retailer Citykart aims to open 12 new stores this fiscal year and is expecting to grow at a compound annual growth rate (CAGR) of 50 percent thanks to the organisation of the value fashion market.

Citykart (SSR Retail Kart Pvt. Ltd) is a value shopping brand with between 80 and 85 percent of its revenue coming from apparel sales, according to the business itself. With its target demographic being lower middle class families in Tier 2 and 3 cities, an increase in demand for branded apparel in this section of the market is good news for Citykart.

“A shift towards organised retail, improved business models, changing demographics, and rising per capita income has cemented our trust in serving this TG and geography,” Citykart’s Founder and Chief Executive, Sudhanshu Agarwal, told Indiaretailing Bureau. “Even after being the most populous part of the country, Tier II and III cities and towns are highly under-penetrated in terms of organised retail. Basically, these are the places where people have newly increased purchasing power and aspire for a shopping experience.”

Agarwal is confident that the “shift of consumers from unorganised to organised retail” will continue. The business, which currently has 26 retail outlets selling clothing, footwear, and accessories, reported a turnover of Rs 200 crore ($30 million) for the 2018 financial year with a CAGR of near 40 percent. Aiming to open 12 more stores, Citykart has its eyes on large-scale expansion.