Fashion City anchors Telangana expansion with dual store launch
20 February 2026, Mumbai
The powerhouse behind the ‘Fashion City’ brand, Baazar Retail has intensified its footprint in the Telugu-speaking heartland with the simultaneous inauguration of new outlets in Anakapalle, Andhra Pradesh, and AS Rao Nagar, Hyderabad. This dual launch marks a tactical push into high-consumption residential and suburban corridors, as the Indian value retail sector prepares for a projected 10.5 per cent revenue growth in FY26. The expansion comes at a time when regional brands are scaling to national levels, leveraging deep connections with local catchments to offer competitive pricing.
Capturing the ‘Bharat Growth’ in Tier-II hubs
The choice of Anakapalle and AS Rao Nagar reflects the brand's focus on the ‘Bharat Growth’ where Tier-II and suburban markets are outperforming traditional metros in discretionary spending growth. Unlike high-premium labels facing growth moderation, value-driven chains like Fashion City are benefiting from a shift toward ‘intentional shopping,’ where quality-conscious consumers prioritize value-for-money over brand logos. This regional acceleration is mirrored by the parent company’s broader financial velocity; Baazar Retail's affiliate, Baazar Style Retail, recently reported a 38 per cent Y-o-Y revenue growth to Rs 1,376 crore, fueled primarily by such cluster-based expansion.
Scaling towards the 500-store milestone
With an ambitious roadmap to surpass the 500-store mark within the next three years, Baazar Retail is transitioning from a regional player to a national volume authority.
The brand is increasingly adopting data-led decision-making and supply chain integration- such as SAP ERP implementation - to manage an inventory that now yields a 54 per cent revenue share from private labels.
While rising procurement costs and local cannibalization remain operational hurdles, the brand’s ability to maintain high inventory velocity, currently averaging 102 days, ensures it remains a formidable competitor in the $110 billion Indian apparel landscape.
Operated by Baazar Retail, Fashion City is a leading value fashion chain specializing in trendy, affordable apparel for men, women, and kids. Founded in Kolkata and now boasting over 192 stores across 12 states, the brand focuses on ‘pocket-friendly’ shopping environments. With a diversified product mix including cosmetics and household items, it plans to reach 500+ outlets while maintaining a robust 15.8 per cent EBITDA margin.
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