The observation that world over, it's the single-brand stores that are doing well led lifestyle retailer Globus to overhaul its business strategy in 2005. The change is paying off and the chain, set up in 1999 by the Rajan Raheja Group, is going to accelerate the pace of its store expansion, says Mr Vinay Nadkarni, Managing Director and CEO, Globus Stores.
Speaking to Business Line here, Mr Nadkarni said they had focused on fine-tuning the product mix and range in the last 5-6 years. The store, which now offers only ‘young fashion', has been selling entirely its own labels in womenswear, both ethnic and Western, and accessories since 2005. It has both private labels and other brands in men's and denims, though. “In the women's category, the product is important. Men, who don't enjoy shopping the way women do, just pick up a product and become brand-loyal. We need to stock those brands to get them to try ours,” explains Mr Nadkarni. The core customers are aged 16-25 but 80 per cent are aged 18-35 years, he said.
Globus expects to make Rs 250 crore by March 2012. With store additions, it has been growing at CAGR of 20 per cent and is making a profit, he said, though he declined to mention how much.
The chain has grown quite a lot in 2011, Mr Nadkarni said. It had added seven stores between April and October. Henceforth, it will add 8-10 stores every year, in Capital cities and major towns of States. It expects to invest Rs 5 crore per store and increase the number of stores from 34 to 37 by March 2012.