Indian textile firm Raymond is planning to expand to markets in small towns, where it sees a big demand gap, according to company’s retail Director Mohit Dhanjal. As the company has no presence in around 800 out of 1,200 towns with a population of over 50,000, it expects up to 10 per cent like-to-like sales growth from this initiative, he said.
The company plans to set-up mini Raymond shops in these tier IV, V and VI towns using an asset-light franchisee model, Dhanjal told. He feels each such store can generate annual revenue of Rs. 1 crore. About 40 mini Raymond shops have been set up in the past two months and another 60 will be opened by the end of this year, he said. Raymond operates about 767 stores, mostly under franchise model in 416 towns, and is also present in about 3,500 multi-brand stores.