Arvind Mills-owned value retail chain Megamart has entered into a strategic tie up with US-based womenswear brand Cherokee to retail latter’s entire portfolio in India. It also targets to touch 250 stores mark by March 2010, 140 up from its current figures.
Speaking to media, KE Venkatachalapathy, chief operating officer, Megamart said, “We are already known for our menswear brands in India, but now with Cherokee Inc we are ready to get fame in womenswear and childrenswear as well.”
As part of the company plan, Megamart is likely to invest around Rs 3 billion in sales, which is roughly 15 per cent of Arvind’s total turnover in fiscal 2008-09.
The company has also decided to allocate Cherokee 20 to 25 per cent of their typical small-format Megamart store space, which span across 3,000 square feet. For large-format stores which span across 4,000 to 6,000 square feet, Cherokee will occupy 5 per cent of the space.
Commenting on the agreement, Larry Sass, executive vice president and managing director– business development, Cherokee Inc, said, “India’s growing economy provides huge growth scope to Cherokee and this development with Megamart will help us grow better in a new market.”