BAJAJ BROKING
V2 Retail will open 50 new stores in Tier 2 and Tier 3 cities this year. This expansion aims to boost revenue by targeting untapped markets and improving operational efficiency, which could impact V2 share price positively.
V2 Retail Ltd, a leading value fashion retailer in India, has announced plans to open 50 new stores this year. This expansion is part of the company’s growth strategy to increase its footprint in Tier 2 and Tier 3 cities. The company aims to capitalise on rising consumer spending in these regions, with new stores planned in cities such as Bhopal, Jaipur, Visakhapatnam, and Gorakhpur.
With 128 operational stores across 18 states, V2 Retail continues to expand its presence in smaller towns and cities. The company’s expansion will strengthen its position in regions where it already has a significant customer base, such as Uttar Pradesh, Bihar, Odisha, and West Bengal. Additionally, it will extend its reach to the southern states of Karnataka and Andhra Pradesh.
V2 Retail’s decision to focus on Tier 2 and Tier 3 cities stems from the growing demand for affordable, fashionable clothing in these areas. The expansion is based on market research that identified these regions as high-potential markets. By tapping into these untapped opportunities, the company aims to boost its revenue while improving operational efficiency and profit margins.
The retailer is also focused on consolidating its position in existing markets while penetrating new ones. This twofold strategy will help V2 Retail optimise its economies of scale, ultimately improving margins over time.
V2 Retail has set an ambitious revenue growth target of 60% year-on-year for the next quarter, driven by strong Same Store Sales Growth (SSG) and enhanced customer engagement during the festive season. The company’s profit margins are also expected to increase, backed by efficient inventory management and high sales per square foot, which stood at ₹904 per month in Q2 FY25.
V2 Retail’s growth and expansion plans have contributed to its strong performance in the stock market. With its focus on high-potential markets and robust sales growth, the company’s expansion strategy is likely to continue driving up V2 share price, especially as it enters the festive season and capitalises on increased consumer demand.
As V2 Retail prepares to open 50 new stores this year, its expansion into Tier 2 and Tier 3 cities signals its commitment to tapping into fast-growing markets. This move is expected to enhance both revenue and profitability, further supporting its strong position in the retail sector.
Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.
This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.
For All Disclaimers Click Here: https://bit.ly/3Tcsfuc
Share this article:
Level up your stock market experience: Download the Bajaj Broking App for effortless investing and trading