V-Mart Retail to invest Rs. 115 crore in FY20

India's leading value fashion retailer, V-Mart Retail is planning to invest Rs. 115 crore in FY20 to expand its footprint. During this fiscal, the company is planning to add new 60 stores, taking the total store count to 275 by FY20 end.

The company is also is planning to appoint 2,000 people. The company’s manpower cost has grown to 8.2 per cent (as a percentage of sales) in Q1FY20 as compared to 7.8 per cent in the corresponding quarter last year. Talking about the contribution from private labels, the company is hoping to achieve 75 per cent share from the same vs 70 per cent at present.

Looking at recently concluded quarter Q1FY20, the company had reported 25 per cent yoy jump in revenue. Same store sales growth (SSSG) stood at 5.2 per cent and volumes grew by 5 per cent for Q1FY20. Also, V-Mart Retail added new 13 stores in the same quarter. The company’s segment mix stood at Fashion- 94 per cent and Kirana- 6 per cent as on Q1FY20.

V-Mart Retail is one of the pioneers in setting up stores across various small Indian towns and cities. The company primarily operates in Tier-II and Tier-III cities, with a chain of value retail departmental stores offering apparels, general merchandise etc.

On Tuesday, the stock had opened at Rs. 1974.70 and made an intraday low of Rs. 1941.25 on the BSE. At 13:37 pm, the stock was trading at Rs. 1949.90, down by Rs. 52.55 or 2.62 per cent against the previous close of Rs. 2002.45.