Landmark enters east, launches 24th Max in India

At a time when retailers are struggling with high rentals and companies like Pantaloon Retail are slowing the pace of expansion by shifting focus to profitable growth, Dubai-based Landmark Group has charted an ambitious expansion plan of opening 37 Max stores by 2011-12 with an investment of Rs 148 crore. The company on Thursday entered the eastern region with the value fashion brand Max, which was launched in the country in 2006, with the first store opening at New Town City Centre 2. This will be Max?s 24th store in India.

In 2010-11, Max plans to open eight stores in metros and 12 in mini-metros, which have a population of more than 10 lakh, like Raipur, Baroda, Amritsar and Jullandar.

Max had a turnover of Rs 185 crore in 2009-10 and is aiming to double it in 2010-11. ?We are targeting a Rs 200 crore increase in turnover every year,? said Max executive director Vasanth Kumar. In 2009-10, the brand has seen 36% growth over 2008-09. Its average bill size is Rs 900-1000.

Max wants to increase total retail space to 4.5 lakh sqft in 2010-11 from 2.5 lakh sqft in 2009-10.

?We source for a large number of stores. The high quantity helps us procure at a lower price which we pass on to the consumer,? said Max senior vice-president CS Shekar. Max is drawing on its large base?115 stores across nine countries?to keep prices 25-30% lower than say a Pantaloons or Westside product of same quality, he claimed.

The store offers international fashion trends at a price range of Rs 199 to Rs 599 for most of its products. It has menswear, ladieswear, kidswear, footwear and accessories.

India contributes 10% of Max?s global sales. ?Our target is to take this to 15% in the next 3-4 years,? said Kumar.

In the Rs 1 lakh crore Indian retail space, which is growing at 12-15%, the discount segment occupies Rs 77,000 crore and standard segment Rs 15,000 crore. ?It is these two segments that are value conscious, so we want to cater to them,? said Kumar, adding that the value fashion segment is worth Rs 40,000 crore in India and largely unexplored.