The Loot will add 50 stores in the next six months, plans an IPO soon

In an interview with DNA, Jay Gupta of The Loot Stores underlines what the company’s plans are for the festive season and beyond. Excerpts:

How do you foresee growth in this festive season for the retail industry and specifically for The Loot?
The footfalls on normal days are consistent and they go up during weekends, but during festive seasons we have see a major rise in footfalls as we on our part also introduces extra offers for our consumers.

The festive season does help us do more sales and it also helps introduce new consumers to our brand. We expect a growth of 60% in this festive season. The Loot has been growing at an average of 40% to 50 % on a year on year basis.

How many stores are you planning to add in the short-term?
We will add more 50 stores in the next 6 months.

Do you feel the need for any change in your business model?
No, we are pretty much fine with it; small changes happen on a year to year basis as we grow in size.

You plan to float an IPO this year..
Yes, we are looking forward to an IPO. Things are at a planning stage.

You have managed to open stores in some of the smallest towns of the country. How did you do that, and what have been the learnings?
We are now 150 stores, pan-India, present in Tier II and Tier III cities. We basically operate on the franchise model when it comes to smallest towns because every city has different rules and regulations about which, the franchisees are well aware and this helps in smooth functioning of the stores.

This has been possible with the support of the franchisees. We see potential based on the buying behaviour of consumers for various national and international brands.

Do you plan brand extensions to the The Loot?
The Loot as a brand name itself
signifies the discount format in which we have been operating. And this has been well-accepted and looking at the
positive feedback I think the current
format is very much acceptable for the
long run.

Are realty players still keeping rentals high?
No, they have realised that the retailer cannot afford high rentals so they are becoming more accommodating.

What are some of the emerging trends that you foresee in Indian retail?
More specialised retail is coming in various formats and even international players are coming into the retail scene.