V2 Retail

2025-01-28

affordable value retailer

  • target of 100 new stores for next year
  • 10% SSSG growth target
  • capex per store : 1-1.05cr , working cap per store : 1.3cr
  • total expansion requirement : 220-230cr (internal accurals)

focus is on making the supply chain more better

  • current in house product development : 35%
  • plans to increase it to 80% by next summer
  • earlier 15 designers , now 24 of them

focus on apparel segment , reduced general merchandise space from 15% to 6-7%

  • Revenue growth target: 40-50% for next decade
  • EBITDA margin target: 10% pre-IndAS
  • ROE target: 25% in next 18-24 months
  • Revenue per square ft target: ₹1,200 in two years

store maturity takes 2-3 years . customer retention rate : 70% in mature stores ( up from 55-56%)

  • Cost per square feet: ₹190-195

  • Rental costs: ₹50-55 per sq ft

  • Employee count: 30-35 per 10,000 sq ft store

  • Head office: 450 employees managing 163 stores

  • Start with 1-2 stores, gather data for 1-2 years, then expand

  • cluster based approach