Footwear maker Relaxo is eyeing about 25 percent growth in turnover to Rs 2,500 crore this fiscal as it expands its retail network and introduces new products to tap the country’s youth population. The company also plans to open 50 standalone outlets in the current fiscal, taking total count to over 350 stores.
“Relaxo has been growing at a compounded annual growth rate (CAGR) of 20 per cent in the last five years. We are targeting turnover of Rs 2,500 crore in this financial year. We are increasing our retail distribution network …we plan to add to 50 stores this year,” Rajeev Bhatia, Assistant Vice President-Marketing, Relaxo told PTI.
According to a PTI report: The company had reported 18 percent growth in turnover to Rs 2,000 crore in the previous fiscal.
The company, which had been expanding its retail network through company owned stores, has adopted franchise route for store expansion. Going forward, new outlets will be a mix of company owned and franchised stores, he added.
The Delhi-based firm, which had gone in for new brand identity by changing its logo, said this change has helped it connect with youth customers.
Bhatia said the company has reworked its offerings by introducing brands and products targeting the younger population.
Presently, Relaxo’s key brands include Relaxo, Sparx, Flite, Bahamas and School Mate, in which Sparx and Bahamas are youth oriented brands.
The company has 9 manufacturing units and has presence in 30 countries and accounts for 5 percent of its total turnover.