Owing to the increasing demands in small towns, textile and apparel Major Raymond has planned to install small stores in these towns to earn 10% like-to-like sales growth from this initiative.
Raymond retail director Mohit Dhanjal said, "We had conducted a study last year and identified at least 1,200 urban townships with a population of over 50,000. We have no presence in at least 800 of those towns. We are looking to set up mini Raymond shops in these tier IV, V and VI towns, through an asset-light franchisee model.”
He added, “Typically, it would cost Rs 50-60 lakh to set up a mini Raymond shop, and the company has tied up with local investors for this. He expects these stores can generate a revenue of Rs 1 crore each. In the past two months, the company has set up about 40 mini Raymond shops, and will open another 60 stores by the end of 2018.”
The company will install small stores which require small investment considering the dynamics and needs of the town people.
He said, "Larger stores of about 2,500 sqft require Rs 1.5-2 crore investment, and generate average income of above Rs 2 crore.”
Raymond operates in 416 towns with about 767 stores working under franchise model, and is also present in about 3,500 multi-brand stores.
Dhanjal said the company expects an uptick in sales through its retail outlets in the current quarter, as well as the next quarter, with a spurt in demand.