V-Mart Retail optimistic about the festive season, eyes ‘Unlimited’ profitability
Value fashion retailer V-Mart Retail has witnessed an increase in footfalls over the last two months and expects strong sales during the upcoming festive season.
The company recently strengthened its retail presence and entered the south Indian market by taking over 74 stores of Unlimited in South and West India. It expects this chain to be profitable over the next few years.
In the last quarter, V-Mart had managed to narrow its net loss to Rs 29 crore ($4 million) with revenue jumping two-folds to Rs 177 crore despite the Covid-19 disruptions.
“All the stores are now fully operational, footfalls have become positive, reached 80-90 percent of pre-Covid levels, that is a very heartening sign. We are optimistic about the upcoming festive season,” Anand Agarwal, chief financial officer at V-Mart Retail, told CNBC-TV18.
On the Unlimited acquisition, he added: “First focus is to get the entire system integrated, get the consumer confidence back and not make it into V-Mart, but improve things that we can identify, which can turn this chain profitable. The long-term aim is to bring this chain somewhere near the operating profit levels of V-Mart, which might take one-two years.”
V-Mart currently has a store count of 363 and plans to open around 50 stores every year to further fuel its growth in the Indian market.
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