- V-Mart reports 93% revenue growth YoY for Q2 FY’22; accelerates expansion to reach 368 stores as of 30’ September 2021
- The Company saw sustained recovery post the second wave of Covid related disruptions, despite the early part of the quarter remaining impacted by partial lockdowns in parts of the country. Acquisition of 74 Unlimited stores in South India, effective from 1st September also helped increase the sales recovery to 107% for the quarter, versus pre-Covid levels (Q2 FY20). On a comparable basis, excluding the addition of 74 Unlimited stores, the recovery from pre-Covid levels stood at 100% for the Company.
- The company continues to remain focused and committed to the accelerated store expansion plan with 86 net store additions for the quarter (including 74 stores acquired in South India) and now operates a total of 368 stores across 26 states. The southern acquisition and transition went ahead smoothly, with V-Mart adding 800+ employees to its already existing 7000+ strong workforce.
- The immediate focus of the company in the newly formed south zone remains on ensuring people and product continuity, while improving merchandise assortment, sharper pricing and integration of systems and processes. A key initiative in the overall merchandise strategy for the company will now be cross-populating selective stocks from south to north, and vice versa to add more variety and better options for consumers of both geographies.
- Improved sales and better supply chain management initiatives helped improve EBITDA to 6.1% for the second quarter, which traditionally remains a subdued and a small quarter impacted by end of season sales and lower margins. The inventory levels remained healthy despite the upstocking for the festive season with comfortable liquidity and cash position.
- Our customers continued to increasingly leverage the convenience of digital platform with the online channel continuing to register dynamic growth. Digital content and social media initiatives remain increasingly central to the overall marketing strategy. The company has also started launching exclusive styles on its online platform which is witnessing encouraging traction. The company also continues to invest significantly behind digital transformation projects and data analytics to further augment decision support systems across all parts of the business
Commenting on Q2 performance, Mr. Lalit Agarwal, said the rapid market uptick post the second wave of Covid-19 saw a strong recovery on the back of increased operational days and festive led consumption (15th August Rakhi, Janmashtmi).
“Though the business got disrupted in Q1 owing to the second wave, it was encouraging to see operations recover quickly from mid-June onward, with rapid re-opening of our stores in almost all markets,” said Mr. Agarwal.
Strategic outreach of our brand through our omnichannel platform has also been encouraging. We saw significant consumer acceptance of our digital-based shopping avenues during the quarter, and continue to build upon that level of consumer trust by exciting offers, newer merchandise and customer service,” added Mr. Agarwal.