22 July 2024, Mumbai
Value clothing retail chain, V2 Retail aims to increase its full-price sales to 92 per cent of its total sales, shares AkashAgarwal, Director.
Last year, V2 Retail increased full-price sales to 88 per cent, highlights Agarwal. Selling at full price boosts the company’s average selling price (ASP). However, as it scales up its volumes, the company will benefit from economies of scale that will help maintain a stable ASP, adds Agarwal.
In FY24, V2 Retail's ASP stood at Rs 263, with the retailer operating at a gross margin of around 27-29 per cent. The company sold about 317 items per minute across 124 stores in 111 cities during the year.
In Q1FY25, the retailer’s same-store sales grew by 37 per cent compared to Q1FY24, according to a BSE filing.
While V2 Retail operates three manufacturing units that produce 10 lakh items per month, the company plans to strengthen its vendor network to support expansion plans. The company currently has around 160 vendor partners, states Agarwal.
As of June 30, 2024, V2 Retail operates 127 stores with plans to add 30-40 more stores this fiscal year. This expansion will be executed with an investment of Rs 50-60 crore and an inventory investment of around Rs 60-70 crore, adds Agarwal.
During the June quarter, V2 Retail’s standalone revenue from operations grew by 57 per cent Y-o-Y to Rs 414.17 crore.
