V-Mart bullish on growth potential in tier two and tier three cities
14 April 2023, Mumbai
Indian retailer V-Mart is optimistic about the growth potential in tier two and tier three cities, where the majority of the country's population and consumption is located.
CMD Lalit Agarwal as quoted in TOI, noted that while there are some challenges, such as the slow return of consumer spending ability, there are positive indicators such as an increase in consumer confidence.
Raw material prices are still higher than pre-COVID levels, but V-Mart is innovating with blending and machinery to keep prices at similar levels without compromising profitability. Despite the pressure on margins, V-Mart plans to continue with its expansion plans, while keeping a cautious approach to its margins.
The expansion plan for the retail chain includes adding more than 65-70 stores in the current year.
