Madura plans more ‘The Collective’ stores

Madura Fashion and Lifestyle is looking at doubling the number

of its multi-brand premium retail stores ‘The Collective’ in the next 12-18 months, signalling an improvement in prospects. The company, which operates seven stores in Delhi, Chandigarh, Mumbai and Bangalore, will invest close to Rs 50-60 crores in adding another seven. It now plans to enter new markets such as Chennai and Hyderabad.

Started in 2008, The Collective stores are large-format multi-brand outlets that retail close to 60 international premium apparel and accessory brands such as Armani, Versace and Alexander McQueen’s fashion label McQ through marketing and distribution pacts. The stores have struggled to find a firm footing as The Collective sought to balance high operating costs and import duties with the need to keep pricing to within a few points of overseas prices.

After a restrained expansion in the first four years, the brand added three stores in 2012 and is looking forward to cash in on spur in demand. Last year, The Collective stores posted overall growth of 20 percent in revenue while same-store sales growth was 12 percent. New Delhi, which has three Collective stores, is the biggest market in terms of revenue.