The Hindu Business Line : Non-apparel retailing next stop for Megamart

Mumbai, Jan. 4 Arvind Mill-promoted retail chain Megamart is expected to venture into non-apparel retailing by adding new categories such as luggage, footwear and lifestyle electronics at its larger format stores under ‘Megamart’ outlet centres.

Mr J. Suresh, CEO, Brands & Retail Division, Arvind Mills, told Business Line, “We intend having 30 per cent of our products from the non-apparel segment while the rest will continue to comprise apparel brands from Arvind Mills.”

The retail chain is already in talks with players such as Mobile Next to set up shop-in-shops within its stores for a variety of lifestyle electronic products such as cameras, mobile phones and laptops. For luggage there would be brands from VIP and American Tourister while footwear would comprise brands from M&B, Reebok, and Nike.

Value price points

However, instead of being discount driven like the rest of the Megamart stores, the non-apparel section would be more ‘offer’ led. Explains

Mr K.R. Venkatchalapathy, Business Head, Megamart, “While our non-apparel products would be still value driven they would not sell on discounted prices. Instead such products would have more offers attached to them and would be based on value price points.” Bringing in a host of new categories, Megamart is currently in discussions with other players such as Timex (for its watches and sunglasses) and brands in the space of cosmetics and perfumes as well.

Meanwhile, the balance 70-75 per cent of Megamart Outlet Centres would comprise Arvind Mill’s apparel brands such as Lee, Wrangler, Arrow, Flying Machine, Newport, Excalibur, Ruf ’n Tuf, Ruggers, Elitus, Auburn Hill, Mystic Dew, Yash, Iris and Colt.

Apparel plans

At the same time there are plans to have separate retail brands to represent its departmental stores at the top end of the retail market. Adds Mr Suresh, “We intend having a separate brand for our departmental stores and hope to have 3-4 of them by 2009-10. These would be apparel focussed stores in the premium to luxury segment and to begin with would have brands from our own portfolio.”

The new departmental stores would be company owned and measure between 15,000 and 25,000 sq ft and are expected to come up in the big retail oriented metros such as Bangalore and Delhi. Considering there are already a portfolio of high-end premium brands with Arvind Mills under Arvind Brands and other joint venture companies’ brands along with licensee brands, bringing them all under a separate retail entity is what is being envisaged.

Meanwhile, the Megamart brand of retail stores is targeting a revenue turnover to the tune of Rs 2,000 crore in the next five years and is expected to be spun off as an independent company in the near future.

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