V-Mart Retail Ltd., Indias most-profitable department store chain, is planning to sell apparel and other goods online to attract youth in villages and small towns.
The retail store, which runs medium-sized stores that sell clothes, accessories, footwear and everyday staples. It is also planning to add 30 to 40 stores every year to its current 177 stores, Samir Misra, the Harvard University-educated chief operating officer of the retailer, said in an interview.
We are in the process of an omni-channel strategy, Misra said, referring to integrating both online and physical shops. We will be finalising our e-commerce strategy and omni-channel model in a year.
V-Mart doesnt plan to expand in larger cities because of the demand from smaller cities, said Misra. Metro market is also big indeed. But we have no intention to head there at this point of time, Misra said. We would continue to proliferate stores in smaller towns, he said. Two-thirds of consumers reside in smaller cities, which are emerging as attractive apparel markets.
Return on equity, a measure of how well shareholder money is reinvested, was 25% at the company, the highest among its peers, while another measure of profitability, return on capital was at 24% in the year ended March, according to data compiled by Bloomberg. The companys shares have risen 60% this year and closed last week at Rs 2,392.75.