Home decor and lifestyle brand Nestasia is showcasing a conversion rate of over 80 per cent from in-store customers and a 30 per cent higher average order value in comparison to online sales. The brand has launched three brick-and-mortar stores in 2023 and has subsequently announced its expansion strategy targeting a total of 24 stores by the end of next year.
“Nestasia is strategically positioning its new stores for maximum impact, keeping its diverse range of products at the forefront. Nestasia has identified the preference for smaller-format stores in high-traffic areas while actively exploring the potential of larger-format stores in the future,” it said in a statement. Currently, its smaller-sized stores, ranging from 500 to 1000 square feet, in mall locations are ensuring a good rent-to-revenue ratio. The brand has also set an ambitious target of achieving a sales per square feet (SPSF) of over two thousand across all stores.
Nestasia is targeting to capture 20 per cent of its total revenue from offline stores by the end of 2024. In FY22, Nestasia achieved a net revenue of Rs 21.8 crore, and the brand anticipates reaching EBITDA positivity by the end of FY24.
“Expanding our physical footprint is a strategic move that aligns with our commitment to providing customers with a tangible, immersive experience of our design-led products. The positive response from our offline foray has encouraged us to pursue our mission of making homes special with even greater zeal. Our goal is opening 500+ stores over the next 3 years,” said Aditi Murarka, Co-Founder of Nestasia.
The brand’s first offline store was inaugurated in Kolkata, followed by the second in Bengaluru’s RMZ Eco World. The most recent launch has been its first store in Delhi NCR located in DLF Avenue Mall.