In an effort to attract consumers, discount retailer Vishal Retail has said that the company is working on a new pricing strategy. As part of the plan, some of the products will be priced in ranges between Rs 19 and Rs 99. Further, the company has succeeded in bringing down rentals in some of the locations, informed a top company official.
Speaking to IndiaRetailing, Ambeek Khemka, group president, Vishal Retail, said, “We started renegotiating our rent agreements with a series of property owners across the country and successfully brought down 25 per cent rentals in around 40 stores. We spend approximately Rs 9 crore (Rs 90 million) on rentals annually and with this achievement we can save a considerable amount this year.”
“This money will not only help make the company capital-strong in this economic slowdown but will also help fund the future expansion plans of the company,” added Khemka.
Meanwhile, the company is also in the process of opening shops under the franchisee model in cities including Ajmer, Saharanpur, Panipat, Ludhiana, Indore, Jammu, Bharatpur and Muzzafar Nagar.
Besides, the company is also looking at relocation and resizing as options. While relocation of stores has been done in Karnal and is in progress at some other locations, resizing of stores has been done in cities including Ranchi, Jalpaiguri, Raipur, Dhanbad, Jorahat, Delhi, Meerut, Barielly, Guntur, Surat, Kolhapur and Aurangabad, and are in progress in cities including Jamshedpur, Daripada, Haridwar, Shimla, Agra, Lucknow and Ahmedabad.
— Sarimul Islam Choudhury