Megamart adds Value Retailing to Portfolio

Arvind Mills owned retail chain with 75 discount stores under the brand name “Megamart” has unveiled a new strategy to move towards lifestyle based value retailing rather than being a discount retailer. Earlier Megamart would stock mostly out of fashion brands targeting the really low class in the pyramid.

The company is setting up its first mega store of 40,000 sq ft in Chennai designed by UK based designer, JHP. This store will be a value retailing store stocking mens, womens and kids lifestyle value brands. The merchandise is expected to retail atleast 12-15% less. The store will also stock luggage, home furnishing, kitchenware, footwear, bed, bath, personal accessories and electronics.

Business Head of Megamart, Mr. Venkatachalpathy said,

We are an independent SBU and operate at arm’s length from our parent Arvind Brands. We are in discussion with several other brands to stock them in our store.

The Chennai Megamart will have a marketplace where unsold merchandise will be sold at a still deeper discount. The next two stores will come in Pune and Hyderabad. Rs 400 crore is earmarked for setting 30 such stores on PAN India basis. Existing smaller stores will be doubled too. A Rs 15 crore advertising budget is also set aside for the same.