Garment retailer Pantaloons plans to roll out 50-60 stores nationally in the next three years, doubling its presence from about 60 stores to around 120 stores, according to Mr Pankaj Tibrewal, Chief Operating Officer, Pantaloons, Mumbai.

He said while the levy of excise duty and input cost hike would lead to an upward revision of readymade garment prices from the coming season, Pantaloons would be a “lot less affected than competition”.

Speaking to journalists in Coimbatore on the sidelines of the opening of its first showroom, he said South India was an important market for Pantaloons, and “we are going to expand very dramatically in the South”. He said the South accounted for about 20 per cent of the sales, and he expected the region to be the fastest growing market for Pantaloons in the next few years.

Surging south

Mr Tibrewal said, “Nationally we are growing at about 35 per cent.” In the next few years, he said the company intended to grow by at least 50 per cent in the South. He said it would be difficult to estimate the impact of price increase on sales. Because of Pantaloons' vertical integration, it was able to offer the same brands, designs, etc., at a lesser price than competition. Moreover, after prices rose, some customers might shift from costly brands to value-for-money purchase, making him confident of growth.

Asked whether he expected the weaker players to exit the retail market or the market itself to expand because of demand growth to accommodate all players, Mr Tibrewal said the market was expanding but if customer expectations were not met, then players would have to struggle. After much experimentation, the company has found that the store area between 25,000 sq. ft and 40,000 sq. ft is “where the sweet spot is” for offering a “compelling array to the customers”.

He said by the end of current fiscal (the company follows a July-June fiscal year), the company would have about 60 stores, with this year's addition being at 14 stores. Over the next three years, the company has planned to double the number of stores.

‘Right time', right place

Mr Nitesh Gawri, Business Manager—South, Pantaloons, Bangalore, said the Coimbatore store was the 12th Pantaloon store in the South. He said the company had found that people of Coimbatore had been buying from its stores in Chennai and Hyderabad, and so “it is the right time to come and explore the customers here”.

He said the Coimbatore store, spread over 43,000 sq. ft, was the biggest in the zone. Pantaloons, belonging to the Future Group, plans to open four stores in the next seven months in the South, including in cities like Kochi, Mysore and Vizag. Vijayawada, Thiruvananthapuram, Salem and Madurai, among others, were also on its radar, he added.

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