V-Mart Retail Ltd. plans to hire 2,000 people and invest Rs 115 crore this financial year as it looks to expand its operations.
Chairman and Managing Director Lalit Agarwal shared, "We would hire around 2,000 people this fiscal to enhance our back-end support and manpower."
The value fashion and lifestyle retailer has already opened 20 new stores this fiscal and currently operates 233 outlets. Majorly, operating in tier-II and III cities, V-Mart now plans to add around 60 stores this fiscal, taking the total count to 275. Further, it also expects the contribution of its private labels to increase to around 75 percent of total sales, from 70 percent at present.
The new stores might open in Bihar, Jharkhand, West Bengal, Odisha and north eastern states, besides markets like Madhya Pradesh and Rajasthan.
Agarwal shared that consumption levels are much higher in the markets they operate in at the present. V-Mart identified how these markets are under-served. Agarwal and his team, hence, wishes to continue to go deeper and focus on tier II, III and IV towns as they expand. More stores require more staff. However, the retailer doesn't look to only increase the workforce but also plans to enhance their skills.
Besides investing Rs 1.5 crore per store (on average), V-Mart will also invest around Rs 25 crore in warehouses and training of staff.
With about 7,000 employees, currently, the company is also working on an omni-channel retail strategy by integrating offline stores with its online e-commerce portal.
It is a wise decision by V-Mart to not only expand its operations with offline store but also focus on going online. The e-commerce sector in India has grown at a furious pace of 34 percent and of which, E-tailing (a mix of online retail and marketplace) grew at a whopping 56 percent since 2009. With emerging new technologies, increased use of mobile and changing consumer demands, online retailing is only to grow further.
For retailers like V-Mart it is important to follow the trend and focus more on taking their business online as well. By integrating their offline and online stores, V-Mart can tap on to different types of consumers.