Nykaa to expand offline footprint, plans to open 180 stores by 2024
The multi-brand beauty retailer Nykaa will expand its physical presence in India by opening around 180 new stores over the next five years across the country.
Nykaa, founded by Falguni Nayar in 2012, has been pursuing an increasingly omni-channel approach taking its offline store count to 41 since it opened its first brick-and-mortar store in 2015.
The offline expansion is expected to further boost sales of the company and help it turn profitable over the next few years. Offline currently contributes only around 15 percent to the company’s overall sales.
“We started our offline presence 18 months ago. We have 41 outlets across 18 cities in the country. We plan to expand the network to 180 outlets in five years,” Anchit Nayar, founder and CEO of Nykaa told Businessline.
“Each offline store requires a capital expenditure of Rs 60-80 lakh. There are no immediate plans to raise funds to support growth plans. We have achieved break-even. We can fund our growth plans by ourselves,” Nayar added.
Nykaa more than doubled its revenue for the fiscal year 2019 to Rs 1,229 crore ($177 million) as against Rs 578 crore it had reported in the previous fiscal with the majority of the sales coming from its online channel.
Nykaa sells products from a portfolio of both international and domestic brands. It also has its own private labels in the beauty space.
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