Mumbai: Discount store chain, The Loot, is re-negotiating rentals on many of its stores in the range of 15-30% besides planning to expand its store network to 200 from the present 95 by March 2010, a top company official said.
“We have been re-negotiating rentals since the last 45 days. We feel we will be able to achieve substantial savings,” The Loot’s Managing Director, Jay Gupta, told PTI here.
The company is re-negotiating rents on its stores in metros as well as in smaller towns, he said.
“We also intend to expand our network pan-India to 200 from the present 95,” he said, adding that “by end-March this year, we will add five more stores taking our network to 100.”
He said that the company has managed to secure reductions of 15-20% in rents in the metros and 20-30% in smaller towns.
“The places where we have re-negotiated rentals include Mumbai, Pune and Ahmedabad, among others,” Gupta said.
On expansion, he said that while the fall in real estate prices was “certainly a favourable factor” the company would be cautious while expanding.
“We will take measured risks,” he said.