Pantaloon to invest Rs 500 cr to expand India footprint
Pantaloon Retail India, India’s largest listed retailer, plans to invest more than Rs 500 crore to expand its seamless mall Central and the value fashion format Brand Factory over the next two years.
By ET Bureau |
KOLKATA: Pantaloon Retail India (PRIL), India���s largest listed retailer, plans to invest more than Rs 500 crore to expand its seamless mall Central and the value fashion format Brand Factory over the next two years. Towards this, PRIL will add 25 Brand Factory stores and 10-12 Central malls by 2011. At present, PRIL operates 10 outlets each for Brand Factory and Central.
Post-expansion, Brand Factory���s revenue is projected to grow from Rs 250 crore to Rs 1,500 crore by calendar 2011, while the Central chain will see turnover growing from Rs 750 crore to Rs 2,500 crore.
Talking to ET, PRIL V-P (marketing & customer experience management- Central & Brand Factory) Rajesh Seth said the company expects both formats to emerge as top revenue grossers. While a Brand Factory store is spread over 40,000-60,000 sq ft, a Central mall occupies anything between 1.25 lakh sq ft and 3 lakh sq ft.
"Both formats are unique in character, have little competition and enjoy a huge first-mover advantage. While investment in the Brand Factory format varies from Rs 1,000-1,500 per sq ft, it is around Rs 2,000-2,500 per sq ft for Central," he said.
PRIL plans to set up at least 4-to-5 Brand Factory stores in each of the metros and even expand into tier-II markets like Vizag, Surat and Nashik. Currently, the stores are located in Bangalore, Hyderabad, Pune, Ahmedabad and one just launched in Kolkata. PRIL expects to break even each of the outlets in their first year of operation.
"A Brand Factory store has more than 200 leading brands across categories and nearly 95% of merchandise will be sold at a discount throughout the year. Since the fashion cycles have become smaller and nearly all brands are stuck with huge unsold merchandise, we buy such stock from them at a discount and pass the price benefit to consumers. The stores target consumers who are in the 17-to-32 years age group and vie for best brands at a discount," said Mr Seth. The 10 Central malls are spread over Bangalore, Hyderabad, Pune, Mumbai, Gurgaon, Indore and Baroda.
Post-expansion, Brand Factory���s revenue is projected to grow from Rs 250 crore to Rs 1,500 crore by calendar 2011, while the Central chain will see turnover growing from Rs 750 crore to Rs 2,500 crore.
Talking to ET, PRIL V-P (marketing & customer experience management- Central & Brand Factory) Rajesh Seth said the company expects both formats to emerge as top revenue grossers. While a Brand Factory store is spread over 40,000-60,000 sq ft, a Central mall occupies anything between 1.25 lakh sq ft and 3 lakh sq ft.
"Both formats are unique in character, have little competition and enjoy a huge first-mover advantage. While investment in the Brand Factory format varies from Rs 1,000-1,500 per sq ft, it is around Rs 2,000-2,500 per sq ft for Central," he said.
PRIL plans to set up at least 4-to-5 Brand Factory stores in each of the metros and even expand into tier-II markets like Vizag, Surat and Nashik. Currently, the stores are located in Bangalore, Hyderabad, Pune, Ahmedabad and one just launched in Kolkata. PRIL expects to break even each of the outlets in their first year of operation.
"A Brand Factory store has more than 200 leading brands across categories and nearly 95% of merchandise will be sold at a discount throughout the year. Since the fashion cycles have become smaller and nearly all brands are stuck with huge unsold merchandise, we buy such stock from them at a discount and pass the price benefit to consumers. The stores target consumers who are in the 17-to-32 years age group and vie for best brands at a discount," said Mr Seth. The 10 Central malls are spread over Bangalore, Hyderabad, Pune, Mumbai, Gurgaon, Indore and Baroda.
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