The Loot retail chain targets a turnover of Rs100 cr by 2009
26 Mar '07
2 min read
Promoters of The Loot chain of retail stores in country, Jay Retailing and Merchandising Pvt Ltd is planning to go public in 2009.
Company plans to run over 25 stores across India and target a turnover of Rs100 crore by that time, said Jay Gupta, Managing Director, after opening maiden Loot store recently.
Company was able to make a place for itself by offering a minimum of 25 percent reduction in maximum retail price of branded apparels and footwear, said Gupta.
It buys apparels or footwear in large quantities from brand owners to offers them at discounted prices to customers.
The Loot will compete with discount sale offers by brand owners or with 'owned outlets', due to its ability to offer variety of products at attractive prices, Gupta said.
"We will stock the entire range of fresh merchandise, albeit after a time lag of three to six months," Gupta said.
Present trend of introducing new designs every season has created an opportunity to pick up new stocks every three or four months, he said.
"There is a very small section of consumers who buys and wears designs only when it is in season; the rest will look for well-known brands with a lowered price tag," Gupta said.
Company would ensure its presence in state capitals, places near airports and at places where population is above 6 lakh, as part of its strategy for expansion, Gupta said.
"These are the places where we have customers who understand our value proposition," he said.
Company with 10 stores is present in Mumbai and Navi Mumbai, Hyderabad, Delhi, Nashik and Pune.
Company will look at valuation based on sales turnover of Rs100 crore at end of 2008 to decide upon size of funds it intends to raise through the issue, he added.
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