Vishal Retail is working on a new pricing strategy. As part of the plan, some of the products will be priced in the range between Rs 19 and Rs 99
Vishal Retail is working on a new pricing strategy. As part of the plan, some of the products will be priced in the range between Rs 19 and Rs 99. Further, the company has succeeded in renegotiating rentals in some of the locations getting reductions to the tune of 25 per cent. The company which spends approximately Rs 9 crore on rentals annually is looking at saving a considerable amount on the rents it pays for its stores all over India. Resizing and relocation of some of the stores are also in the pipeline. Ambeek Khemka, president, Vishal Retail, said, “We started renegotiating our rent agreements with a series of property owners across the country and successfully brought down 25 per cent rentals in around 40 stores. We spend approximately Rs 9 crore (Rs 90 million) on rentals annually and with this achievement we can save a considerable amount this year.” This money will not only help make the company capital-strong in this economic slowdown but will also help fund the future expansion plans of the company. In order to attract consumers during this downturn, Vishal Retail is working on a new pricing strategy. With products starting as low as Rs. 19/-, Vishal Retail has on offer over thousands of products which fulfill all the household needs. Under this new strategy, products will be priced at Rs. 19/-, Rs. 29/-, Rs. 39/-, Rs. 99/- and so on thus catering to a much larger audience. Meanwhile, the company is also in the process of opening shops under the franchisee model in cities including Ajmer, Saharanpur, Panipat, Ludhiana, Indore, Jammu, Bharatpur and Muzzafar Nagar. Besides, the company is also looking at relocation and resizing as options. While relocation of stores has been done in Karnal and is in progress at some other locations, resizing of stores has been done in cities including Ranchi, Jalpaiguri, Raipur, Dhanbad, Jorahat, Delhi, Meerut, Barielly, Guntur, Surat, Kolhapur and Aurangabad, and are in progress in cities including Jamshedpur, Daripada, Haridwar, Shimla, Agra, Lucknow and Ahmedabad.