V-Mart will open 20 new stores by the end of this financial year. Around Rs 40 crores will be spent to open these stores. As of now, there are 253 V-Mart outlets. The stores, whose average size is 8,000 sq. ft. will be mainly in Tier II and III cities. While it took V-Mart around 12 years to open 100th store, and less than four for the next 100, the last 50 stores have come up in less than nine months. Expansion has been backed by the robust investment in manpower, technology, and processes which enables the company to expand to existing markets and enter new geographies.
The company has been growing at 25 per cent a year for the last many years and expects to continue with this growth rate for the next three or four years. It expects the contribution of private labels to increase to around 75 per cent of total sales from 70 per cent currently.
One of the first fashion retailers to introduce the modern retail format in small towns, V-Mart’s growth over the years underscores the untapped market potential for affordable fashion.