12 May 2023, Mumbai
Lifestyle, a subsidiary of the Landmark Group, is poised to make a substantial expansion in India with the launch of 50 new stores over the next three to four years. To tap into the burgeoning trend of consumers in tier-2 and tier-3 cities gravitating towards organized retail, driven by growing aspirations and a preference for branded clothing, Lifestyle plans to introduce smaller format stores, which have proven successful in these areas.
This expansion strategy primarily targets smaller towns and cities that are currently underserved by organized retail chains, capitalizing on the shift in consumer behavior. By doing so, Lifestyle aims to seize the opportunity presented by the increasing demand for organized retail in these regions. The company recognizes the importance of its private labels, particularly in women's and ethnic wear categories, and has been emphasizing them in recent quarters. This approach grants the company greater control over pricing, promotions, and product offerings, enabling them to identify market gaps and introduce products that can attract customers.
The retailer's ambitious expansion plans mark a significant acceleration compared to its historical growth rate. Recently, Lifestyle achieved a milestone by opening its 100th store in India after over two decades of operations in the country. Situated in Raipur's Magneto Mall, the store showcases a wide range of clothing, footwear, handbags, beauty products, and accessories.
In the current fiscal year alone, Lifestyle aims to add approximately 18 to 20 new stores. The implementation of a small-store format has unlocked substantial geographical expansion opportunities for the company. While these smaller cities are still underserved by organized retailers, consumers in these regions are displaying a willingness to invest in branded apparel and elevate their wardrobes. Lifestyle's presence in these markets has not only relied on lower price points but has also witnessed robust growth and demand for its offerings.
Moreover, Lifestyle is considering replicating the successful small-store format in micro-catchments within larger metro areas. This strategic move would enable Lifestyle to cater to diverse consumer segments and further enhance its market presence throughout India.
