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V2 Retail targets 400 stores, ₹2,800 crore revenue by FY27

By targeting underserved regions and addressing local preferences, V2 Retail ensures accessibility and customer satisfaction, solidifying its position as a trusted fashion retailer in the value segment…

In the early 2000s, as organised retail gained momentum in India, Ram Chandra Agarwal launched Vishal Mega Mart, a hypermarket chain that became a household name. After selling the chain in 2011, Agarwal embarked on a new journey with V2 Retail. Leveraging its legacy, V2 quickly established itself as a leader in the value fashion segment, crossing the ₹100 crore milestone early in its journey.

Fast forward to 2025, V2 Retail operates 160 stores across Tier II, III, and IV cities, catering to the growing demand for affordable fashion. The company is now set to undergo a major transformation, shifting its focus toward strengthening its omnichannel presence and expanding private label offerings.

This strategic pivot comes as India’s value retail market continues to grow, driven by rising aspirations in smaller cities and increasing digital adoption. V2 Retail’s plans to enter new cities and categories position it as a key player to watch in the competitive value fashion retail landscape.

Local & Affordable to its Core

V2 Retail’s growth is driven by its focus on affordability, quality, and a wide range of trendy apparel catering to local preferences. Strategic store locations, efficient supply chain management, and a deep understanding of regional customer needs enables the company to deliver value-driven shopping experiences, fostering strong community trust and loyalty.

We stand out in the competitive value retail segment through our commitment to providing quality at affordable prices, a diverse product range, and a strong presence in underserved Tier II and III cities,” says Akash Agarwal, Whole Time Director, V2 Retail.

The brand’s focal point remains affordability and it is able to achieve that through efficient supply chain management, bulk procurement, and localised sourcing. It also offers competitive pricing keeping in mind the purchasing power of its budget conscious consumers.

Market Presence

V2 Retail currently operates 160 stores across India, covering a retail area of 17.22 lakh square feet as of December 2024. Its stores are strategically located in tier 2 and 3 cities, spanning northern and eastern regions of the country, including Uttar Pradesh, Bihar, Odisha, and West Bengal. Some notable locations include Gorakhpur, Varanasi, Jamshedpur, and Hubli, among others. “By targeting underserved regions and addressing local preferences, V2 Retail ensures accessibility and customer satisfaction, solidifying its position as a trusted fashion retailer in the value segment,” says Agarwal.

Additionally, V2 plans to aggressively expand its store count, targeting over 200 stores in the next two years. Agarwal reveals that the company has allocated 60 crore for expansion and inventory purposes and is looking to open 20-25 stores over the next two months, targeting both existing and newer markets.

“While Tier I diversification remains limited, V2 Retail is exploring select urban markets for strategic growth. Investments in inventory and efficient operations support this expansion, ensuring sustainable scaling while staying true to its value-driven retail approach,” states Agarwal.

Challenges 

Operating primarily in Tier II and III cities, V2 Retail faces challenges such as evolving fashion trends, infrastructure limitations, and logistical complexities. The company addresses these through market research, customer feedback, and collaborations with local and global suppliers.

Key supply chain challenges include demand forecasting and maintaining seamless operations in remote regions. V2 leverages regional distribution centers, advanced inventory management systems, and data analytics to overcome these hurdles. Strong vendor relationships and a robust logistics network ensure timely delivery and restocking, even during peak shopping seasons.

Leveraging Technology

Technology plays a pivotal role in V2 Retail’s transformation. The brand integrates point-of-sale systems, personalised marketing, and inventory management tools to deliver a seamless shopping experience. Digital kiosks, mobile payment options, and loyalty programs enhance customer convenience, while data analytics helps tailor product offerings to evolving preferences.

Looking Ahead

V2 is targeting 400-500 stores and a revenue of Rs 2,800 crore by FY27. The company aims to get there by strengthening its online presence, enhancing private label offerings, while exploring new markets. In 2024, the company recorded an annual revenue of Rs 1,165 crore, growing 38.6% from the previous year. By 2025, it is chasing a revenue of Rs 1,800 crore.

This growth will be supported by 250 new stores, enhanced product offerings, and strong omnichannel presence that will capture a larger share of India’s value fashion retail market.

Looking ahead, the company also aims to diversify its product offerings by enhancing private label products and exploring new categories to meet evolving customer demands. The company is also open to strategic collaborations with other brands to expand its portfolio.

Omnichannel Push

V2 Retail’s hybrid approach will integrate its upcoming e-commerce platform with physical stores, offering features like click-and-collect services and real-time inventory visibility. Personalised marketing across channels, powered by customer data analytics, will ensure a consistent shopping experience.

“The next big change in the value retail segment is the integration of technology-driven personalisation and sustainability. Consumers are increasingly demanding customised shopping experiences and eco-friendly products. V2 Retail anticipates leveraging data analytics, omnichannel strategies, and sustainable sourcing to align with these trends, ensuring relevance and leadership in the evolving retail landscape,” Agarwal concludes.

Conclusion

The last few years have marked the rise of aspirational fashion in India, providing significant opportunities for value chains. V2 Retail is tapping into this shift through private label development, enhanced product design, and in-depth market research.

By maintaining affordability and addressing evolving preferences, V2 Retail ensures sustained competitiveness and appeal in the growing value fashion segment. Its focus on innovation and customer-centric strategies positions it as a key player in India’s dynamic retail industry.

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