Retailigence

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Vishal Retail plans big push on small formats

Posted by retailigence on September 4, 2008

Diversified retail player Vishal Retail is going to give a big push to its small format stores with plans to set up 2,000 such outlets across the country by 2009-10. The company, which has around 140 hypermarkets in 84 cities under the name of Vishal Megamart, is expecting the small format stores to contribute as much as 25 per cent to its overall turnover.

“We launched our first small format store at Indore last week. We are now planning to have 250 such stores across the country by end of the current fiscal and then take the numbers to 2,000 by end of 2009-10,” Vishal Retail Group President Ambeek Khemka said. He said the small formats stores would all be under the franchise model and of 1,000-3,000 sq ft size. The Vishal gamarts, on the other hand, are of 20,000-25,000 sq ft area. “We are looking for a turnover of around Rs 180-200 crore from the new small format stores this fiscal,” Khemka said.

The new format stores would be located at metros, besides Tier II and III cities, he added.The small format stores would have different branding for different product segments. “The FMCG stores would be called ‘Vishal Daily Mart’, while the apparel stores would be known as ‘Vishal Fashion Mart’ and the durables and IT stores would be called ‘Vishal Technomart’,” Vishal Retails Head, Franchise Operations, Dipankar Guha said. While most of the investments would be made by the franchise operators, Vishal Retail would be funding the entire marketing and branding campaign which would “come to around two per cent of the topline investment”.

Sources:-Business standard.
Contributed by:- Vipin Rawat

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