V2 Retail to enter e-retailing space to push growth

V2 Retail, earlier known as Vishal Retail, will enter the e-commerce space in the next six months. It is in talks with

India's top three marketplaces. The company, which has 16 stores in the country, was acquired by TPG Wholesale and Shriram Group three years ago. Last week, it posted an EBIDTA of Rs 11.5 crores and registered a turnover of Rs 231 crores for fiscal 2013-14.

It is expecting a substantial chunk of sales to come from its e-commerce business and in the rebranded format, the company expects to have a 25 percent year-on-year growth in offline space from 2,50,000 square foot now. Inventory holding is 75 days and sales per square feet are Rs 1,300. The strategy involves resizing stores to 12,000 square feet, to adopt low cost sourcing from some of its oldest vendors, and handpicking locations in Tier II and Tier III cities where it can operate almost like a monopoly.

Private labels will account for 25 to 30 percent of yearly sales in the next two to three years. The company has invested in technology. With the help of management information systems, it’s possible to track merchandise being sold at the lowest levels of the hierarchy, which particular size and shade of a single shirt piece is selling at which store.