Formal wear brand Arrow is targeting over 20 percent year-on-year sales growth in the next 4-5 years, and plans to open 55 exclusive brand outlets this fiscal to expand its footprint in Tier II and Tier III cities.
“We will continue to see growth upwards of 20 percent in the next 4-5 years. We don’t see this growth slowing down,” Sumit Dhingra, Chief Operating Officer – Heritage Brands Division, Arvind Lifestyle Brands told PTI.
According to a PTI report: The brand, however, does not disclose its financial numbers.
Dhingra expects demand for work wear as a category to continue to grow in the foreseeable future. “However, the way people dress up for work is changing so we have three sub brands within Arrow to meet that need,” he told PTI.
“We plan to open 55 exclusive brand outlets (EBOs) and 250 shop-in-shops this fiscal. One of the big initiative of this year is to enter Tier II and Tier III markets,” he further told PTI.
We are well represented (with stores) in top 6 cities. Bulk of our expansion this year, will happen in Tier II and Tier III towns. Out of these 55 new outlets, 40 would be in Tier II and TierIII towns, Dhingra said.
At present, there are over 250 Arrow EBOs, out of which 45-50 per cent stores are in top 6 Indian cities, and 1,000 shop-in-shops in multi-brands outlets like Shoppers Stop.
Dhingra, expects online sales, which is the fastest-growing sales channel, to contribute up to 20 percent of Arrow’s sales in the next five years.
“At present, online sales contributes 11 percent of Arrow’s overall sales. It is growing by 60 per cent year-on-year. We expect it to grow faster than other other channels and account for 18-20 percent of Arrow’s total sales in the next five years,” he was quoted by PTI as saying.