- Meenakshi Kumar |
Multi-brand value retail V-Mart is targeting having 300 stores across India in the next three years. The retailer has 178 stores operational in the country mostly spread across Tier II, III and IV cities. Net profits were up 147 per cent for the quarter ended March 2018 while revenues increased 18 per cent.
About 80 to 85 per cent of the group’s sales comes from apparels, 10 to 12 per cent from non-apparel, whereas only five to seven per cent is from the FMCG segment. For the last few years, sales have been growing at 22 to 25 per cent and it aims to continue growing at the same rate this fiscal year.
The company has passed on GST benefits to consumers and reduced prices by around three to four per cent, which helped increase volumes in the last couple of quarters. V-Mart faces some pressure on raw material costs as prices of cotton and polyester have gone up but rather than increasing prices in the immediate future the company will work on improving supply chain efficiencies or increase volumes.