V-Mart Retail to invest Rs 70 crore on expansion
Feb 27, 2020
Value fashion retailer V-Mart Retail will invest around Rs 70 crore ($10 million) to expand its retail presence, by opening 40 new stores in the financial year 2020-21.
The company will be opening its new stores in tier 2, 3 cities across India and banking on its private labels to improve its margins in the coming months.
V-Mart currently has around 260 stores in almost 195 locations across the country, mostly in tier 2 and 3 cities, as it caters to the value segment.
“The company will invest in expanding its network and will add around 40 stores to take the count to 300 outlets in the next fiscal. We will be investing Rs 60-70 crore for this expansion. We will use the funds for enhancing our back-end support as well as for revamping some of the existing stores to meet the changing needs of the consumers,” V-Mart Retail chairman, Lalit Agarwal, told PTI.
"Our strategy to expand in the underserved tier 2 and 3 markets has helped us in our growth. Also, since 70 percent of our offerings are private labels, it has contributed to margin improvement, despite the slowdown," he added.
V-Mart had posted sales revenue of Rs 1,434 crore in the financial year 2018-19. It is aiming to triple its sales in the next three to four years on the back of its retail expansion.
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