Goa-based Magsons Supercentre which has 12 stores at present targets to open 20 store by 2019. Going ahead, the brand plans to go the franchise way.
In an exclusive interview with Indiaretailing, Founder & CEO Magsons Supercentre, Kirit J Maganlal said, “So we are looking at options and opportunities. Our first franchise model was opened last year in the commercial capital of Goa. We have been highly successful with that. At present, we have only one company-owned store, the rest of them are all leased stores.”
He further added, “The reason why there is a need to scale up our operations is that we have launched our e-commerce model just six months ago and we realise that the 12 stores that we have are towards the main cities. We now need to go into the interiors. We now need to go into the areas of Goa which subsequently are going to work as hubs for us to push our e-commerce model into interiors of Goa. So we are looking at areas which may not be full-fledged Magsons store but it could be something like a Magsons Express which would be taking over our running stores and creating it into a hub.”
Magsons Supercentre, which has current ticket size of Rs 400–Rs 500 at the stores and Rs 1,400–Rs 1,500 online, is also looking forward to expand its retail presence at the petrol pumps given the petrol pumps have the space capacity.
Outlining the advantage of setting up shop at petrol pump, Maganlal said, “The biggest advantage of setting up shop at the petrol pump is that your CAPEX is very low, the petroleum companies put in the investment and that helps us a lot in running the whole show. Right now, we have got the fourth petrol pump tie up with Bharat Petroleum which will be coming up next year. So we are building up the structure and that will be designed specifically to our interest.”
He further added, “Currently, we are a regional player, we operate only within the state of Goa. We have our stores at all the petrol pumps already. Petrol pumps today are not geared to put in retail outlet or grocery outlet because basically in Goa the petrol pumps look at the sale of their own merchandise than to give it to the retail outlets. If you typically have to put a petrol pump store, you need to put somewhere around 600 sq.ft area which many petrol pumps may not be having. We have been highly successful with the three outlets that we are running right now. We have plans to grow but unfortunately we do not have the opportunity for that.”
The brand hit the revenue target of Rs 50 crore last year and aims to more than double it to Rs 200 crore by 2020.