Despite a 30% drop in footfalls in malls across the country over the last three months, ITC is undeterred with its expansion of Wills Lifestyle.
KOLKATA: Despite a 30% drop in footfalls in malls across the country over the last three months, ITC is undeterred with its expansion plans for the lifestyle retailing business division — Wills Lifestyle.
In fact, the company, for the first time is mulling to take the franchisee route for expansion. It is also weighing plans to roll out a smaller speciality retail format, targeting very high-end consumers.
Atul Chand, divisional chief executive, Wills Lifestyle, said ITC was looking at the franchisee route, because it wanted to penetrate deeper into tier II cities.
“Franchisees will have a better understanding of the local market,” he added.
Chand said talks were on with various players, especially in tier II towns, for a franchisee agreement.
A retail analyst observed that the franchisee model will also not require any investment in the real estate. Wills Lifestyle has plans to roll out 100 stores across 40 cities over the next two years. At present, there are 55 stores in 30 cities. The company is also experimenting with a very niche, speciality retail format, which dovetails with its overall blueprint to make Wills Lifestyle an upscale brand. For starters, the company is experimenting with a 1,500 square feet store on a pilot basis at the ITC Maurya hotel in Delhi.
“At this point, we are evaluating the project. The results have been encouraging and we are open to the idea of rolling out more such niche stores across the country in the future,” Chand said.
Wills Lifestyle has also been affected by the slowing economy. Retail sales fell 30% in September-November, but some players, including Wills Lifestyle, are hoping to churn positive numbers in the December-January period. An analyst said shopping has now become more need-driven and retailers are looking to the wedding and party seasons to boost sales.
m_madhumita@dnaindia.net
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