Vishal Retail Ltd, the chain that runs discount stores of FMCG and apparels country wide, has planned to add a new format of specialty stores and will franchise through local retailers.
It expects around 50 lakh square feet of retail space by 2009 fiscal-end and is focusing on tier II and III cities as part of its aggressive expansion plan.
Speaking to media, Ram Chandra Agarwal, chief managing director, Vishal Retail Ltd, said, “We have identified this franchisee route as our new avenue of growth in retail and we firmly believe that this partnership will help small retailers to survive the onslaught of organized retail.”
According to a company source, these stores will be categorised in segments including apparel, gift and novelties, FMCG and consumer durables and the first store will come up at Indore in Madhya Pradesh.
In this new plan, Vishal Retail will completely take over the supply chain of its franchisees and provide them with technology, new practices, visual merchandising skills and special promotional schemes, besides its brand and customer base.
Vishal Retail is currently operational at over 135 locations in 86 cities with an area of over 35 lakh square feet of retail space countrywide.