For V-Mart the mid-tier cities have been good and they have outperformed in these cities than the tier I, said Lalit Agarwal, CMD, V-Mart Retail.
Strong earnings from Avenue Supermart had given wings to the entire retail sector.
Talking about the business outlook for the company and sector Lalit Agarwal, CMD, V-Mart Retail said there is need for organised and good retail and the demand seems have improved post GST.
The same store sales growth for the company in Q3 will be not too great but good because in the same quarter earlier year they had done well, said Agarwal and so they are not expecting any extraordinary growth. However, first two quarter had seen good growth, he added.
He said the industry is facing stiff challenge from online retail, so the brick and mortar players are also being tactical and are creating avenues for sale. So, there could be some pressure on margins but would get offset by volumes, said Agarwal.
The market in tier II, tier III cities is getting expanded and the company also plans to open up more stores in these cities, said Agarwal, adding that they are seeing potential to open stores in Uttar Pradesh and Bihar. Tier IV towns also look good opportunities – tehsil kind of towns.For V-Mart the mid-tier cities have been good and they have outperformed in these cities than the tier I, he said.