Provogue visualises its new stores as sales drivers
22 Sep 2007
Mumbai: Provogue (India) Ltd. is looking at its turnover growing 40 - 45 per cent basis its retail expansion, according to Bipin Gurnani, president, Provogue.
According to Gurnani, the company is planning to set up 40 Provogue stores, and four discount stores under the Promart brand by March 2008. Gurnani is also CEO of Promart.
The company estimates its capital expenditure at about Rs33 crore for this expansion. Provogue India had reported a net profit of Rs16 crore on revenues of Rs238 crore in 2006-07.
Provogue presently has 116 stores, and has set up one Promart store in Ahmedabad.
Gurnani says that the company plans to launch a Provogue store every 10 days in cities that have an appetite for its brand of clothing. Provogue''s strategy is to saturate all markets that can accept its product.
After Ahmedabad, the next Promart store is underway at Indore. Promart stores will typically admeasure an average of 45,000 sq ft, which will house discounted merchandise for all branded apparels and non-apparels, including foreign brands.
Citing prohibitive real estate prices in tier-1 cities, the company plans to set up Provogue and Promart stores in many mini-metros, tier-2 and tier-3 cities. The company says setting up a Provogue store requires an investment of about Rs60 lakh. The company will invest up to Rs3 crore for setting up each Promart outlet.
Provogue stores will cover a floor space of between 1,000 to 6,000 sq ft., and the company has plans to set up most of these within malls and/or high streets.
As
a brand extension, Provogue India plans to extend the brand to ''bed and bath''
retailing, and plans to sell bed and bath products through its existing retail
outlets.
