V2 Retail Targets Addition Of 100 Stores Annually For Next Three Years

Apparel company V2 Retail aims to grow its revenue by 40% to 50% over the next two to three years, backed by an aggressive expansion plan of opening 100 stores annually, according to Whole-Time Director Akash Agarwal. Most of the new stores will be in tier-two and tier-three cities, where the company already has a strong presence.

“We plan to open 100 stores every year, at least for the next two to three years. About 70% to 80% of these will be in existing geographies where our brand is well-established. But we are also entering new markets,” Agarwal told NDTV Profit.

The company has set an ambitious revenue target of Rs 1,200 per square foot per month, having already met its previous benchmark of Rs 1,000 per square foot. It expects to close FY25 with revenue between Rs 1,800 crore and Rs 1,850 crore. “Going forward, another 40% to 50% growth for the next two to three years,” he said.

Same-store sales growth (SSSG) will continue to remain a key focus area for the company, with V2 Retail targeting double-digit growth in FY26. The company has already achieved Rs 1 crore in monthly revenue per store, the top executive mentioned.

“Anywhere between 8% and 10% growth on such a high base is good for us because it's a fixed-cost business. Even a 10% increase in sales can boost profitability by almost 20% to 25%,” Agarwal explained.

According to him, V2 Retail is also working on a data-driven strategy to expand into new markets, aiming to establish itself as a national-level retailer over the next five years. The company analyses market trends for six to twelve months before making expansion decisions, ensuring it tailors its product mix to local consumer preferences.

“Whether we are present in tier one, two, or three, our target customer remains the same. We have around nine or ten stores in Delhi, strategically located in areas with a strong migrant, lower middle-class, and middle-class customer base. So it’s not that we are avoiding tier-one cities, but most of the expansion will be in tier-two and tier-three,” Agarwal said.

International expansion is not on the immediate horizon for V2 Retail. “The plans are not there in the near future, but once we feel strong enough and the model is robust, we might consider international markets. Right now, India is big enough for more than 3,000 stores, and we’ve just reached 189. There's a long way to go,” he added.

Shares of V2 Retail ended Friday's session 0.17% lower at Rs 1,616.05 apiece on the NSE in comparison to the benchmark Nifty 50's rise of 0.69% to 23,350.4 points.