V-mart expects 7% comp sales growth this year, aims to lead value fashion sector

V-mart expects to see at least seven percent same store sales growth this fiscal year, as high third-quarter (Q3) sales and an increase in profitability per square foot are predicted across the country.

V-mart expects to see at least seven percent same store sales growth this fiscal year - V-mart- Facebook

Lalit Agarwal, the CMD of V-mart told ET Now that, although the second quarter (Q2) of the current financial year (FY19) has been slower due to a dearth of festivals and weddings, the third quarter will see sales pick up significantly thanks to the festival season. Agarwal also stated that, “things are okay, better than last year.”

This fiscal year, the brand is expecting to see sales growth rates rise from the current rate of between three and four percent to over seven percent by the end of FY19.

Agarwal stated that, “The leveraging come once the same-store sales growth goes above 4% and on that we are quite positive and bullish. Maybe not in this quarter but at least over the whole year, we are bullish on the same-store sales growth. We should see at least 7% same-stores sales growth coming in this year. This quarter may be a little dull because of the festival shift but otherwise, in a month-on-month basis, we are seeing a good traction.”

As V-mart’s aim is to lead the value section of the fashion market in the sates in which it is present, it is working on expanding its private label business.

“Private labels will bring in more loyalty and more customer recall once the customer has used the product because the products are much better and have standardised sizes. The products also have standardised quality and good fashion,” said Agarwal.

Private labels will lead growth for V-mart and currently are at around 52 percent of fashion sales.

The business has the target of Rs 120 per square foot in sales from its front-end operations and was at around Rs 125 last year. As same store sales rise, so too should profit per square foot, said Agarwal.

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