The Hindu Business Line : Jay Retailing plans to expand The Loot

MUMBAI-BASED Jay Retailing and Merchandising Pvt Ltd is expanding its retail chain `The Loot' to 100 from the present 13 in the next two years with an investment of Rs 150 crore.

The chain offers readymade garments and footwear at discounts of 25-70 per cent all through the year.

The expansion will be partly funded by debt, while the rest would be the promoter, Mr Jay Gupta's personal contribution.

"Apart from the metros, we are planning to open outlets in mid-sized cities including Surat, Nashik and Baroda. While some would be company owned, others would follow the franchisee model," said Mr Susil Dungarwal, Chief Executive Officer, The Loot.

Explaining The Loot's ability to offer substantial discounts, Mr Dungarwal said, "We do a lot of opportunity buying, that is purchasing excess production of companies. Besides, our supply chain management is such that it results in cost savings."

Advertising, which accounts for 7-8 per cent of the budget of garment companies, is another area where

The Loot cuts overheads, he said. "We do not advertise. Our business runs on word-of-mouth publicity and we pass on the savings to the customers."

While the earlier stores had smaller formats, the company now plans to open stores of 5,000 sq. ft. space or more. The stores stock Adidas, Nike, Reebok, Wrangler, Lee and Benetton among other brands.

Though currently The Loot offers semi-formal and casual garments, it plans to add the formal range in the future. The company has also tied up with Spencer's for the shop-in-shop arrangement.

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