New Delhi: Arvind Lifestyle Brands plans to open 55 new Arrow exclusive outlets in the current financial year in order to expand the presence of the brand in tier II and tier III cities of the country, said a top official of the company.
“We have launched the new format of Arrow which is modern and showcases the heritage and history of the brand to the consumers. We plan to launch 55 new stores this year in the new format and renovate some existing stores into the new concept,” said Sumit Dhingra, CEO – Heritage Brands Division, Arvind Lifestyle Brands Limited.
According to Dhingra, the brand will renovate around 40 stores out of the existing 250 stores to align them with the new retail concept, this year, apart from the proposed store expansion.
Most of the new exclusive stores will be launched in the smaller cities said Dhingra.
“We will be opening the majority of stores in tier II and tier III cities of the country. We have a very good store presence in tier cities. Hence we believe smaller cities will help us to grow even more,” the executive said. Arvind will open around 20 percent exclusive outlets while the remaining will be launched and operated by franchise partners.
Dhingra said Arrow has been growing at a CAGR of 20 percent and expects the brand to grow at the same rate for the next 4 years.
Although Dhingra declined to comment on the investment plans, he said that the new format stores will be in the size range of 1,000-1,200 sq.ft. and costs around Rs 5,500 per sq.ft to build, excluding the mall deposits and the merchandise.
The company is also looking to increase the store count of its international brand Aeropostale by 12 outlets by the end of the year.