Metro Shoes on retail expansion drive

Rakesh Jhunjhunwala-led Metro Shoes has planned aggressive

retail expansion on the back of decreasing retail space rentals. The Mumbai-based footwear retailer plans to more than double the number of outlets and reach 421 stores by March 2015, up from 161 stores currently. The company has managed to get hold of good retail space at low prices, especially in Tier II cities like Patiala, Nagpur, Ranchi and Patna.

Metro Shoes, which sold a 15 percent stake to investor Jhunjhunwala in 2007, will spend Rs 60-70 lakh to open a store, or Rs156-182 crores overall, on furniture and stocks over the next three years. Metro Shoes, is a debt-free company and will fund its expansion through accumulated profits till the next year.

The company, which operates Metro, Mochi and MSL footwear stores, was incepted in 1977 by entrepreneur Rafique Malik, the current Managing Director. Metro expects to nearly double its sales to Rs 1,095 crores by 2014-15 from Rs 547 crores last year.

The Indian footwear industry, dominated by companies such as Bata and Liberty is valued at Rs 22,000 crores, as per a study by the Associated Chambers of Commerce and Industry of India. It is growing at an annual average rate of about 15 percent and will likely to be worth Rs 38,700 crores by 2015, the report had predicted.