16 July 2024, Mumbai
Marking a significant achievement in its expansion journey, V2 Retail has reported a robust 37 per cent growth in sales-to-sales in the first quarter of the current fiscal year.
The company closed the previous fiscal year with a turnover of Rs 1,150 crore and aims to achieve a turnover of Rs 1,600-1,700 crore this year. AkashAgarwal, Whole-Time Director, attributes their success to maintaining a low markup of 55 per cent in the fashion industry, resonating well with customers and ensuring rapid breakeven of new stores.
As one of India's fastest-growing retail chains, V2 Retail has strategically positioned itself as a value-fashion destination, primarily catering to Tier II and III towns. Its expansion strategy remains aggressive yet targeted, with plans to open 40 new stores this year, already launching 10 in the first quarter. This expansion focuses on established regions such as Bihar, Odisha, UP, West Bengal, and Jharkhand, leveraging existing brand presence for customer loyalty and recognition.
The company's focus on Tier II and III cities aligns with its cost structure, where the average rental per square foot is approximately Rs 50. This cost efficiency, combined with increasing disposable incomes and value-consciousness among the middle class, makes these regions ideal for V2 Retail's value-fashion offerings.
Recognising the growing importance of digital presence, V2 Retail plans to launch its e-commerce business within the next two months, aiming to provide a seamless shopping experience across online and offline channels. The e-commerce platform will display location-specific inventory to minimise return costs and ensure faster delivery.
Looking ahead, V2 Retail plans to open 50 new stores annually for the next three years, targeting a turnover of nearly Rs 3,000 crore by the end of this period. The company is also committed to sustainability, incorporating recycled yarn into its products to align with global trends in sustainable fashion and cater to environmentally conscious consumers.
