Fashion brand Max, part of Dubai-based US $9 billion Landmark Group, is looking to double its turnover to Rs 5,000 crore in the next four years by expanding its sales network to 400 stores in 120 cities.
According to a PTI report: Max Fashion will invest around Rs 400 crore over the next four years to open new stores in Tier I and II cities.
It is also planning to expand its value apparel retail format ‘Easybuy’ and aiming to have a network of 180 stores by then catering Tier III & IV places.
“By FY 2020-21 we would be Rs 5,000 crore company. This year we would close at around Rs 2,400 crore. Last fiscal, we were at Rs 1,800 crore,” Executive Director, Max Fashion India, Vasanth Kumar was quoted by PTI as saying.
He was further quoted by PTI as saying: “In the next four years, we would operate 400 stores in 120 cities”.
Launched in 2004, Max Fashion is presently operating a chain of 190 stores in 75 cities.
“Every year, we would invest around Rs 100 crore for expansion. We invest around 5 crore to open one store, of which Rs 2.5 crore is on capex and the rest is working capital,” Kumar was quoted by PTI as saying.
Max has added 40 new stores so far in the current fiscal and has plans to open 40 more next fiscal.
“We are growing 35 per cent per year and we would maintain this growth for the next 2-3 years,” he was quoted by PTI as saying.
Besides, the Landmark group is also expanding its value apparel retail format ‘Easybuy’ and aiming to have a network of 180 stores by FY 2020-21.
“This is to cater Tier III cities and below and it is operating at a price which is 40 per cent cheaper than Max. It is growing 20 to 30 stores per year now,” Kumar was quoted by PTI as saying.
Presently, the company is operating 30 stores and would add around 30 stores next years also.
“After two years, we would add over 40 stores every year in Easybuy. We would have around 180 stores in next four years,” he was quoted by PTI as saying, adding Easybuy is based on franchise model and requires half the space of a Max retails store.
The company is also evaluating to Omnichannel retail system and is currently piloting the ‘endless aisle’ system by integrating its store inventory with warehouse inventory.
“If a particular size of dress is not at a particular store at that time and is available at our inventory, then it would be delivered at customer’s house next day,” Kumar was quoted by PTI as saying.
On whether Max Fashion is considering to expand in the neighbouring countries, he said: “We have some enquiries from Sri Lanka, Nepal and Bangladesh but we have not yet planned anything. We would focus in India as it has huge opportunity on micro level.