Fashion retailer V2 Retail is gearing up for an ambitious expansion drive with plans to add 35-40 new stores in FY25.
The company plans to invest around Rs 100 crore towards this expansion, says
Akash Agarwal, Whole-time Director, reveals. In FY24, the company witnessed a significant turnaround in its operational performance, rebounding from the challenges posed by the pandemic-induced inventory overhang that affected its liquidity.
In the first nine months of the fiscal year, V2 Retail experienced a remarkable same-store sales growth (SSG) of 29 per cent, with a staggering 40 per cent increase in the fourth quarter alone. Additionally, the average sales per square foot surged by 29 per cent, demonstrating growth across all regions. Notably, Karnataka led the pack with a remarkable 50 per cent SSG in Q4.
This success was attributed to strategic reallocation of space based on sales performance of different product categories. For instance, the company observed that half-sleeved casual shirts outsell full-sleeved shirts in the South, while the trend reverses in Bihar and UP. Consequently, V2 Retail made adjustments in assortment and space allocation to optimize sales potential.
In the upcoming fiscal year, V2 Retail is set to open new stores across a total area of 4 lakh sq ft. The initial phase will see the launch of 20-35 stores, followed by further expansion. The capital expenditure for this expansion is estimated at approximately Rs 40 crore, with an additional Rs 50 crore allocated for inventory. Moreover, the retailer is gearing up to embrace an omni-channel strategy within the next two-three months, further augmenting its reach and customer engagement.
