V-Mart Retail is banking on tier 3, 4 cities to drive future growth as it sees huge potential in these markets. Going forward, the company will focus on these cities for its store openings.
V-Mart has already started with its expansion in these markets and recently added two new stores in the state of Bihar and Uttar Pradesh to take its store count to 202 in the country. It will be adding three more stores before the end of this fiscal.
V-Mart had posted strong numbers for the third quarter with a profit of Rs 42 crore ($5.9 million) with a revenue of Rs 468 crore on the back of strong sales during the festive season from October to December 2018.
“V-Mart has always been pioneering in tier-3, tier-4 cities,” Lalit Agarwal, managing director of V-Mart told the Economic Times. “This is our forte and this is what we are known for. Tier-3 and tier-4 are very different from tier-1 or tier-2 markets. That is the mode that we want to follow and that is where we see a lot of opportunity and growth which can come in.
“V-Mart sees a huge potentiality going forward. We have just scratched the surface by reaching maybe 100-odd towns in these tiers but there are thousands of towns in these locations which can actually be inhabited by retailers like us,” he added.
The company has earmarked an investment around Rs 100 crore on the opening of new stores in these markets.