With the launch of a 2,500 square feet apparel store in Ashok Vihar, Delhi, Vishal Mega Mart, one of the largest hypermarket retail networks in India, has entered the area small-format retailing.
The opening is in sync with the group’s endeavors to cross a total retail area of 20 lakh square feet by March 2008, as the company is looking forward to spread its domain to across the country.
Ramchandra Agarwal, managing director, Vishal Retail, in an exclusive interview with Indiaretailing, had discussed the company’s plans to foray into small formats business. Aggarwal had voiced intentions to cross an area of 10,000-20,000 square feet in this category.
As declared by Agarwal in the same interview, the group plans to open smal-format shops along with other speciality stores in various categories including lifestyle, gift and novelties, FMCG and electronic goods.
The new apparel store will retail the extensive range of garments for men, women and kids. On offer are company’s own brands of clothing including Zeppelin, Kitaan Studio, Paranoia, Chlorine, Fizzy Babe, Jasmine, Zero Degree, Soil and Massa Bay.
According to the directors, the company seeks profit margins in the bulk purchases and mass sales, and that is why they are able to offer fine products at low price.
Presently, Vishal is operating 72 fully integrated stores spread over a total area of 1,734,461 square feet in 50 cities.
The company recorded a turnover of over Rs 600 crore in financial year ending 2006-07, which is more than double of Rs 288 crore, witnessed a year ago. This ascent inspired the group to chalk out an ambitious expansion programme.