Lifestyle International, the Indian arm of Dubai-based $1.5 billion Landmark group, has set its sight on tier-III cities with its value retail chain Max. It want to weave a synergy between company-owned stores in metros and franchisee model in the smaller cities, where value retailing has huge appeal.

Out of the total Rs 1 lakh crore retail industry, Max is aiming to tap Rs 30,000 crore to Rs 40,000 crore value retailing industry with its franchisee model. Landmark group runs Lifetsyle, a premium retail chain, Max hypermarket division and international brands division which has launched brands like Bossini and Kappa in the country.

It will be signing properties in 50 cities like Kozhikode, Mysore, Hubli, Manipal, Rajkot, Nasik, wherever the cities have over 5 lakh population. In Mumbai, it is planning to open stores in Vashi and Thane, and wants to take it to 8 in the next four years.

Interestinly, it is signing properties on behalf of franchisees unlike the popular franchisee model, where franchisees themselves deal with properties.The group has lined up Rs 150 crore investment for four years in the expansion and toying with the idea of master franchisee in the states and sub-franchisees in the smaller cities.

“All stores will have an area of around 22,000 sq ft with investments of Rs 5 crore per store. We plan to spend 3-5 per cent of our turnover on marketing,” Vasanth Kumar, executive director, Max Retail division.On the company-owned stores side, Max is aggressively planning to expand them in tier-I and tier-II cities.

Currently, it has 6 stores, which it want to take to 20 by March 2007 and 50 till 2008. At present, it has 6 stores and its 65 per cent of business coming from apparels and 35 per cent from footwear and accessories.

It is seeing a business of Rs 10 crore to Rs 12 crore coming from the company-owned stores and half that amount coming from the franchisee model. It is expecting a turnover of Rs 200 crore turnover from its operations in the next two years. The group already has 50 Max stores in the west Asia and has operations in 7 countries.

For the full story Visit http://www.business-standard.com/compindustry/storypage.php?leftnm=lmnu1&subLeft=1&autono=275072&tab=r

Related Content

Subscribe to the post comments feeds or Leave a trackback