Myntra plans to shelve offline expansion

By

Maverick Martins

Published
Dec 3, 2018

Flipkart owned online fashion retailer Myntra has kept its offline expansion plans on hold amidst internal reorganisation and job cuts at the company.
 

With Myntra and Jabong all set to integrate their functions, the company’s offline expansion plans are expected to take a hit in the absence of a strong leadership team to lead the offline expansion.
 
Myntra had earlier announced plans to take its offline store count to 100 from its current total of 15 within two years for its private label fashion brands Roadster and HRX among others.

Walmart, which owns 80 percent of Myntra and Jabong's parent Flipkart, is believed to be the roadblock in Myntra’s offline expansion plans, Business Standard reported citing anonymous sources.
 
"Over the past few months, there have been several high-profile exits at Myntra, including its chief strategy officer and head of categories, Ananya Tripathi. The process of integrating with Jabong is also being completed. So an expansion into offline is a little difficult now," a source close to the company told Business Standard.
 
"Senior Walmart executives have advised against it. They want to concentrate on online and consolidate Flipkart's leadership position in India. Splurging on offline stores might not go down well with investors," another source added.
 
Reacting on the news, a Myntra spokesperson said, "Myntra continues to move forward in its strategic direction, including omni-channel (through franchise partners) according to a plan with the full support of the leadership and board.”
 
Online sales contribute the maximum to Myntra’s overall revenues and offline expansion was part of its strategy to build awareness of its private label brands.
 
The company had earlier stated that even after reaching an offline store count of 200, offline business is only expected to account for five percent of the business. It looks to be a strategic move by Walmart to cut down costs at Myntra especially after its merger with Jabong.
 
Myntra-Jabong is the leader in India’s online retail fashion industry and has helped the Flipkart Group maintain a market share lead over rival Amazon.com.