V-Mart Retail evaluating Omnichannel strategy to expand business
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Value fashion and lifestyle products retailer V-Mart Retail, which primarily operates in smaller towns, is evaluating a Omnichannel (offline and online retail) strategy to expand business and reach its customers.
According to a report: The company is also looking at investing Rs 100 crore next fiscal to open new stores and setting up a new warehouse.
V-Mart primarily operates in Tier II, III and IV cities and follows a cluster-based model approach to expand and has a set a target to invest Rs 300 crore to double store count and treble its turnover to Rs 3,500 crore in the next five years.
“We are considering an Omnichannel strategy and plan to get into online retail to reach our customers. It may happen by end of next year,” Lalit Agarwal, Chairman and Managing Director, V-Mart Retail said.
It currently operates about 185 outlets in over a dozen states in India. The company plans to add more than 200 stores in the next five years to create a network of 400 outlets.
In 2017-18, the company had reported a revenue of over Rs 1,200 crore.
The company also plans to invest Rs 100 crore next fiscal to open new stores and set up a new warehouse in the country.
“We are looking at setting up a new warehouse to service our stores. It will come up in Uttar Pradesh or Bihar,” Agarwal further said.
About 75 percent of V-Mart’s stores are located in just four states — Uttar Pradesh, Uttarakhand, Jharkhand and Bihar.
V-Mart, at present, has a distribution centre located near Gurugram to service all its stores.
Questions & Answers
Q.What is V-Mart Retail's long-term financial and expansion target?
What is V-Mart Retail's long-term financial and expansion target?
V-Mart aims to invest £300 crore over the next five years to double its store count and treble its turnover to £3,500 crore. This expansion includes adding over 200 new stores.
Q.When does V-Mart Retail expect to launch its online retail operations?
When does V-Mart Retail expect to launch its online retail operations?
V-Mart Retail expects to launch its online retail operations by the end of next year. This is part of their evaluation of an Omnichannel strategy to reach more customers.
Q.Where are V-Mart Retail's stores primarily located within India?
Where are V-Mart Retail's stores primarily located within India?
About 75 percent of V-Mart's stores are located in four states: Uttar Pradesh, Uttarakhand, Jharkhand, and Bihar. They currently operate around 185 outlets in over a dozen states.
Q.What additional infrastructure investment is V-Mart Retail planning for the next fiscal year?
What additional infrastructure investment is V-Mart Retail planning for the next fiscal year?
V-Mart Retail plans to invest £100 crore next fiscal year to open new stores and set up a new warehouse. This new warehouse will likely be located in Uttar Pradesh or Bihar.
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