Electronics, appliances and IT products retail division of Videocon Industries , Next Retail India today said it is aiming for over 65 per cent jump in sales this to touch Rs 2,500 crore.
The retail chain that currently operates 609 Next stores is also aiming to take the total number to 1,000 across India by the end of 2011-12.
“We are targetting sales of Rs 2,500 crore in the current fiscal and hope to open around 400 new stores by the end of March next year to touch a mark of 1,000 stores by then,” Next Retail India CEO Sunil Mehta told PTI.
Last fiscal the company had a turnover of Rs 1,500 crore. He said the new stores would be a mix of company run and franchisee operated outlets.
Asked about investments for store expansion, Mehta said: “Depending on the size one store can cost anywhere between Rs 1 crore to Rs 5 crore”.
Explaining the company’s strategy, he said the chain has adopting a two-pronged strategy to drive expansion by catering to consumers at Taluka and district level as well as by addressing the needs of premium consumers in big cities.
Small sized Next Retail stores with a focus on appliances and popular electronic items would be opened at district and Taluka levels across India to tap rural and semi-urban consumers, he said.
“At the same time, we are also opening big lifestyle stores spread across over 8,000 square feet in metros and mini metros offering high end premium products to cater to a different set of customers,” Mehta said.
Of the new stores planned this year, about 50 will be big lifestyle stores.
According to Mehta, the total market retail size of consumer electronics, appliances and IT products is estimated at Rs 65,000 crore, out of which the organised segment is about 10 per cent.
Next Retail competes with the likes of Tata group’s Croma, Reliance Industries’ Reliance Digital and Future Group’s e-Zone.
Source : Economic Times