Flipkart’s Myntra to expand offline stores from 12 to 100 in next 2 years
By March 2020, Myntra will open 50 stores for its biggest-selling brand, Roadster, besides expanding its offline presence with HRX
Bengaluru: Online fashion retailer Myntra is planning to expand its offline presence from the existing 12 stores to 200 within the next two years to strengthen its private label business.
By March 2020, Myntra will open 50 stores for its biggest-selling brand, Roadster, besides expanding its offline presence with HRX. It also operates the franchise of the Mango label in India.
Myntra is opening stores primarily for strengthening its brands, chief executive Ananth Narayanan said in an interview. “We are not opening stores because we want them to be big sales centres. It is a great way to do branding for us and to provide the touch-and-feel experience to consumers. In future, stores can also help us deliver products faster to (online) consumers.”
Even after the launch of the 200th store, offline will comprise only about 5% of its business, said Narayanan.
Myntra, which also owns Jabong, generated gross merchandise value (GMV) of $1.2 billion in the last financial year. Its earnings before interest, tax, depreciation and amortization (Ebitda) margin narrowed to -5% in March, from -17% in the year-ago period. The company expects the GMV to increase by more than 50% this year.
Myntra is not the only online retailer to expand its operations to the physical space. Many online retailers, including Eyewear retailer Lenskart, furniture retailers Pepperfry and Urban Ladder, and baby products seller Firstcry, are looking to strengthen their brands or boost sales through brick-and-mortar stores.
Myntra’s private label business accounts for more than 25% of its business. This week, it launched its second Roadster store in Bengaluru.
The company has increased the use of technology, offering real-time online prices, faster checkouts and a seamless way to browse through products.
“Roadster is the fastest growing casual wear brand in the country, witnessing 100% year-on-year growth. The launch of ‘Roadster Go’ is set to redefine the overall offline fashion shopping experience and marks the beginning of a new era in the Indian fashion retail industry,” Narayanan said separately in a statement.