India-based textile and apparel conglomerate Raymond is mulling to foray into the untapped towns in the country.
The textile company is eyeing markets in Tier IV, V and VI cities through an asset-light franchise model to fulfil the huge demand gap in these markets. This was reportedly revealed by a senior company official.
Raymond decided to set up stores in these markets after conducting a study last year and hopes to note around 10 per cent like-to-like sales growth from this initiative, informed Raymond Retail Director Mohit Dhanjal.
The company will go for small format stores as these towns do not require large stores that need higher investment. Currently, it operates around 767 stores, mostly under franchise model in 416 towns and is also present in about 3,500 multi-brand stores.
Raymond has identified around 1,200 urban townships with a population of over 50,000 and around 800 of these identified areas are yet to have the presence of the company.
According to Dhanjal, the company is planning to spend Rs. 50-60 lakh to open mini Raymond shops in these areas. Tie-ups with local investors have also been inked and it anticipates noting revenue of Rs. 1 crore from each of these stores in the time to come.
Around 40 mini Raymond shops have been set up by the firm in the past two months and is planning to add 60 more such stores by the end of this year.
