Shopping at large-format urban stores is sometimes like “entering a dump yard” as one can get lost in such environs, which also run the risk of being impersonal.

So Promart, a discount apparel retail chain, is eyeing consumers in Tier 2 to Tier 6 cities to sell them fashion through smaller stores.

Speaking to Business Line , Mr Ashish Garg, Managing Director, said there was now more spending power in these markets. Incomes have risen; so has credit card usage.

untouched territory

These cities are virtually untouched territory for discount retail chains, the likes of which include Megamart (owned by Arvind Ltd) Loot, and Brand Factory (Future group) which are largely present in urban centres, he said. Promart, which sells over 50 brands including Levi's, Gini & Jony, Pepe and Wrangler, now has five stores, mainly in Gujarat, and one in Mumbai.

Stores of 1,000-2,500 sq. ft., low rentals, a cash-and-carry model and no warehousing enable Promart to keep costs low and offer higher discounts, Mr Garg said.

While other chains offer discounts of 10-40 per cent, Promart offers 20-60 per cent. Cash payment gives them an edge by allowing them to buy a range of sizes. In credit operations, retailers are offered only unsold items, he says.

Promart will firm up a brand ambassador from Bollywood this month, Mr Garg said. The Rs 70-crore company intends to have 100 stores open by end-March 2013.

It is eyeing a Rs 450-crore turnover. It has firmed up plans and franchisees for stores in Maharashtra, Rajasthan, Uttar Pradesh, New Delhi and NCR. Promart has in-house apparel brands for men and women and plans to sell home linen and stationery.

Mr Garg and Mr Punit Agarwal, CEO, acquired this business from Provogue for Rs 90 lakh. It started operations in November 2011.

sra@thehindu.co.in

Related Topics