Promart, that offers 25 to 60 per cent discount on lifestyle brands throughout the year, will be opening 200 stores by the end of 2013, while ensuring break-even of each store within one to one-and-half years.
“We are adopting new strategies for Promart while keeping the format same. The focus will be on tier II to tier VI cities where the real estate costs are 50 to 70 per cent lesser than the metros. In smaller cities, the labour costs too are at least 25 per cent lower,” said Puneet Agarwal, CEO of Promart Retail.
Promart is opening stores in cities like Bharuch, Bhavnagar, Vapi and Valsad. The store sizes also have been reduced from 7,500 sq ft earlier to 1,500 to 3,500 sq ft. In tier II and III cities, the company will open around 100 own stores, but in smaller cities it will look at franchising as well.
“The promoters have deep pockets. We have invested Rs 100 crore in the business and will be further investing Rs 50 to Rs 100 crore. This will be funded by promoters themselves and this will give us space and time to settle the operations,” he said.