Value fashion retailer V2 Retail Ltd plans to open between 170 and 200 new stores in FY27 as it accelerates expansion across India, building on the addition of 136 stores in FY26.
The company, which has crossed the milestone of 350 stores nationwide, said future expansion will be guided by performance in individual states, with strong traction emerging from several newer markets.
Expansion drive gathers pace
V2 Retail has adopted a measured approach to entering new states, typically launching four to five stores initially to gather data on consumer preferences, product assortments, sizes and colour choices before scaling operations.
The strategy appears to be paying off. States such as Gujarat, Andhra Pradesh, Karnataka and Goa have delivered encouraging performance, while two of the company’s three stores in Maharashtra are performing exceptionally well.
The retailer currently operates in 25 states and plans to deepen its presence in both established and emerging markets.
Speaking at the company’s latest earnings call, V2 Retail Ltd Chief Executive Officer Akash Agarwal, said, “In FY27, the target would be to open anywhere between 170-200 stores, completely dependent on how we are performing and how the momentum continues.”
Ambition to reach 2,500 stores
The company sees significant headroom for growth within India and has set a long-term target of operating 2,500 stores across the country.
According to management, around 30% to 40% of new store openings are expected to come from recently entered regions, while 50% to 60% will continue to come from the company’s core markets.
V2 Retail has expanded into several new states in recent years, including Andhra Pradesh, Telangana, Maharashtra, Gujarat, Rajasthan, Punjab and Haryana, and intends to eventually establish a presence in every state in India.
Supply chain network expands
To support its growing footprint, the retailer is strengthening its supply chain infrastructure. The company has already established a zonal warehouse in Kolkata and is finalising another facility in South India. Along with its central warehouse, this will create a three-warehouse network supported by around 18 distribution hubs across densely populated markets.
Focus on value fashion
V2 Retail said customer demand remains healthy across categories, supported by its focus on affordable fashion, trend-led assortments and competitive pricing.
The company is increasingly relying on analytics-driven merchandising, supply chain responsiveness and operational discipline to improve operating leverage and drive growth.
Management added that V2 Retail has moved away from in-house manufacturing and is now focused entirely on its retail business.
Price hikes likely amid rising yarn costs
The retailer indicated that recent increases in yarn prices may lead to a 3% to 4% increase in product prices in the coming months as it seeks to protect margins.
The company also increased safety stock levels in March due to geopolitical uncertainties, resulting in higher inventory. However, it expects inventory levels to normalise once conditions stabilise and plans to maintain inventory at 90-100 days and creditor days at around 45 days.