The clothing brand Cantabil, which has 550 locations across 250 towns in the nation, plans to create 85 additional locations this fiscal year in an effort to expand into tier II and beyond, according to Deepak Bansal, director of Cantabil.
Because larger stores generate higher returns, the business is also concentrating on growing its store size from 1,250 square feet to 1,600 square feet.
“This financial year, we are planning to invest Rs. 20 crore to aid the expansion plans and out of the 85 stores that we are planning to open, 20 per cent will be via franchise route and the remaining 80 per cent stores will be company-owned and company-operated,” he explained.
Currently, 15 per cent of the company’s stores are located in malls, while the rest 85 per cent are on high streets. The brand intends to maintain this distribution in the future.
“20 per cent of our stores are in metro and Tier-1 cities, 40 per cent in Tier-2 cities, and the remaining 40 per cent in Tier-3 and beyond,” he added.
The company ventured into new markets last fiscal year, including athletic apparel and shoes. The firm anticipates that these new categories will develop even more this fiscal year, contributing an estimated Rs. 10 crore to revenue. In FY ’24, these categories brought in Rs. 2.6 crore.
“In FY 23-24, we opened 5 exclusive outlets for activewear and footwear and added this as a new category to 60 of our existing family stores, and this fiscal year, we are planning to add these categories to 30 more family stores and won’t be opening exclusive outlets,” he asserted.
“Apart from this, at present, we have 45 exclusive stores focusing on women and kids and this fiscal, we are aiming to add 15 more stores,” he further added.
Accessories made up 5 per cent of total sales in the previous fiscal year, and the firm hopes to increase that percentage to 6 per cent in the current one. The firm intends to raise its online sales percentage to 7.5 per cent this fiscal year from 5 per cent in the previous one.
“Our offline average ticket size stands at Rs. 4,600 with average selling price of Rs. 1,100,” he stated.
The brand’s revenue objective for the previous fiscal year was Rs. 675 crore; however, it ended up ending at Rs. 620 crore. This fiscal year, the brand hopes to reach its goal of Rs. 750 crore.
