Retail chain Megamart sees itself as a lifestyle value retailer

Chennai: Arvind Mills Ltd division Arvind Brands, which runs its discount retail format under the Megamart brand, is all set to open its first mega store of 40,000 sq ft in Chennai.

Arvind Brands runs around 75 Megamart stores across 25 cities, totalling sales of Rs102 crore. The company reportedly wants to scale up this retail format and change the brand perception from that of a discounter to a retailer, by offering a great shopping experience at value prices.

The 40,000 sq ft mega store is reportedly coming up in a Chennai suburb, in the premises of an unused garment factory, and has been designed by a UK-based design consultancy, JHP Design, a commercial design consultancy that has retail projects across the world to its credit.

The Chennai mega store will be reportedly spread across three floors, and will host all the attributes of a lifestyle store, that too at retail prices 12-15 per cent lesser than elsewhere. It is planned as a full value retailer, selling men''s, women''s and kids apparel, not just a retailer of surplus or out-of-fashion stock from the Arvind Brands'' stable. The mega store will also stock a few private labels, and a host of competing brands.

Amongst other product lines, the store will retail luggage, home furnishings, bed, bath and personal accessories, footwear, kitchenware and personal electronics, plus a utility bill payment counter, a food court, and kids'' play area. Ostensibly, there would also be a "marketplace" for unsold discounted goods that will be sold at practically throw-away prices.

According to company sources, Megamart will try to set up around three large-format value stores in the current financial year, including stores in Pune and Hyderabad, and at an investment of Rs400 crore, the company plans to set up at least 30 similar stores over a three to four year time span.

Megamart plans to spend around Rs15 crore on advertising for its new identity.

Alongside its large format, the company plans to continue with the expansion of its smaller format stores, and wants to take the number from 75 to 90 within the next few months, finally closing the tally at around 200 in about the next two years.