With an ambitious target to reach a turnover of about Rs 2,000 crore by the end of 2012, Arvind Limited is pushing ahead on its retail network. A step towards this came in the form of the launch of its second ‘Megamart Outlet Centre’ in Pune, the first being in Chennai. Spread across 55,000 sq.ft, the value retail store houses brands across categories for menswear, womenswear and kidswear along with accessories, luggage, footwear and also personal electronics. Megamart Outlet Centres offer more than 150 of the top apparel & lifestyle brands at discounts ranging anywhere between 20-60 per cent.
According to J Suresh, CEO, Arvind Brands and Retail, “The value retail market in India is pegged at about Rs 12,000 crore and the future looks bright with an expectation of it reaching Rs 30,000 crore by the end of 2012. We see a 20 per cent annual growth in this segment. Also, you must know that the Indian value retail market is the fastest in the world.”
Arvind began its foray into discount retailing back in 1995 with its first Megamart. The target for the company was to reach to tier II and tier III cities across India and this has been well achieved with 93 Megamart units now present across 42 cities in India. The large format stores, which are called Megamart Outlet Centres, have presence in Chennai and now in Pune. An additional outlet in Bengaluru in on the cards.
Apart from clothes, accessories, footwear, electronics and fragrances, each store also features a multi-cuisine food court that includes brands such as St. Marche, Café Coffee Day, The Mobile Store and value-add ones like a kid’s play area. In addition, trained baby-sitters at stationed in the store to care for young children as parents browse the shelves.
By the end of this fiscal, the company plans to open four more Megamart Outlet Centres; by 2012 there would be in all 30 Megamart Outlets spread across 21 towns. Investment per Megamart Outlet Centre is close to Rs 10 crore. About 70 per cent of the merchandise is from various brands; the remainder belongs to private labels.
— Zainab Morbiwala, Mumbai Bureau