Raymond bets big on small format stores to tap non-metro customers

Source: https://retail.economictimes.indiatimes.com

New Delhi: Textile manufacturer and retailer, Raymond, is aggressively expanding its exclusive retail outlets in tier IV towns and beyond in order to tap the non-metro consumers who are not yet shopping from the brand. The company has so far opened 200 small format retail outlets called Mini TRS (The Raymond Shop) in about 80 weeks in smaller towns with populations as low as 50,000.

“There are 800 smaller towns in the country where we can potentially open our small-format exclusive outlets. In the last year and a half we have opened 200 such outlets and are on course to open 100 more outlets in the coming six months,” said Mohit Dhanjal, director-retail at Raymond.

“We believe we can open 100 Mini-TRS stores every year for the next 2-3 years, going forward,” Dhanjal further said.

In addition to the Mini TRS stores, the company already has 700 TRS stores which are almost three times bigger and present across 380 top towns and cities across the country.

According to Dhanjal, the company realised that the bigger store format will not work in the smaller towns and thus decided to come up with these mini-stores.

“The average size of TRS is about 2,500 sq.ft., while we have optimised the Mini-TRS stores to about 800 sq.ft. The cost to launch a normal TRS store ranges in between Rs 1.5-2 crore while the smaller store entails an investment of around Rs 50 lakh,” the executive said.

The textile-major feels that with 300 Mini-TRS stores, the model can contribute to around 20 percent of incremental revenue for the Raymond Shop channel.

For the new format stores, Raymond has created a portfolio that is much sharper and more relevant to the customers in the area. “We can set up these stores in 15-30 days as compared to 90 days for the bigger stores,” said Dhanjal.

Categories: Asia, Brands, Business, India, Retail, Textile

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