Retailigence

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Mega Mart brings US brand Cherokee to India

Posted by retailigence on September 30, 2008

Arvind Mills-owned value-retail chain Mega Mart has launched US family lifestyle brand Cherokee in India. The brand caters to casual wears for men, women and children, including toddlers and infants.Mr Suresh J., Chief Executive Officer – Brands and Retail, said the company will open six large format stores (40,000 to 50,000 sq ft) this year, going up to 30 by 2012. It also plans to ramp up value outlets (500 sq f) from 100 to 500, spread across 100 cities.

At present, Mega Mart operates two large format stores in Chennai and Pune and intends to open one in Bangalore next week. Cherokee will offer garments in the range of Rs 300 to Rs 1,000.

“We will be investing Rs 400 crore in the next two years and targeting sales turnover of Rs 2,000 crore by 2012,” said Mr Suresh.

The company recorded a sales turnover of Rs 140 crore in 2007 which is expected to touch Rs 300 crore this year, while for the next year it is expected to reach Rs 500 crore.

At present, the company plans to manufacturer Cherokee branded garments in Mumbai, Bangalore and Tirupur, but it is also exploring possibilities of importing a few women’s and kids’ wear from abroad. Cherokee will provide its expertise on design and product development to Arivnd Mills.

Agreeing that some of the retail textile businesses are under pressure, Mr Suresh said, a few players who had entered the business when the rentals were on the higher side are facing the heat, besides sales volume has taken a hit due to high inflation.

“We will not rush to open up new stores, but wait for the right property and right price. Rentals in metros have already started coming down and has corrected about 50 per cent to 60 per cent in the last eight months,” he added.

Mr Larry Sass, Executive Vice-President, Cherokee Group, said “We had studied the Indian market for the last four years, before zeroing in on Arvind Mills and hope the value for money Cherokee offers will be well received.”

Source: Business Line

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