Marking an important turning point in its growth strategy, V2 Retail reported a robust 37 per cent increase in revenue in the first quarter of the current fiscal year.
V2 Retail ended the last fiscal year with a turnover of Rs. 1,150 crore and plans to attain a turnover of Rs. 1,600-1,700 crore this year. Akash Agarwal, Whole-Time Director, credits their success to maintaining a humble markup of 55 per cent in the fashion industry, which resounds well with customers and ensures quick breakeven for new stores.
As one of India’s rapidly growing retail chains, V2 Retail has tactically positioned itself as a destination for value fashion, mainly serving Tier-2 and 3 towns. Their growth strategy is aggressive yet targeted, with plans to launch 40 new stores this year, previously launching 10 in the first quarter. This expansion focuses on established regions like Bihar, West Bengal, Odisha, Uttar Pradesh, and Jharkhand, capitalizing on present brand presence to promote customer loyalty and recognition.
The company’s stress on Tier-2 and 3 cities suits its cost-effective structure, with average rental costs around Rs. 50 per square foot. This cost-effectiveness, tied with rising disposable incomes and growing value consciousness among the middle class, positions these regions perfectly for V2 Retail’s value fashion offerings.
Indentifying the increasing value of digital presence, V2 Retail intends to initiate its e-commerce platform within the next two months, striving to deliver a flawless shopping experience across online and offline channels. The platform will feature location-specific inventory to reduce return expenses and ensure speedy delivery.
Looking ahead, V2 Retail plans to open 50 new stores yearly for the next three years, aiming a turnover of around Rs. 3,000 crore by the closing of this period. The company is also dedicated to sustainability, incorporating recycled yarn into its products to line up with global trends in sustainable fashion and appeal to environmentally aware consumers.
