Cherma’s embarks on expansion drive

To open around 10 outlets in twin cities; eyes over Rs 120 cr turnover this fiscal

Cherma’s, a leading apparel retailer in the city, is gearing up to expand its network across the twin cities by opening 8-10 new outlets over the next eight years. The retailer on Thursday launched Rs 5 crore worth of special offers to celebrate its 35th anniversary.

“Our first priority is to expand our network in Hyderabad where we want to have eight to 10 new stores. At present, we have five stores. With apparel business growing in the city, we are of the strong view that we can have 12 to 15 stores here,” Kaizad Pestonji, Director, Cherma’s Group, told after unveiling the retail chain’s 35th anniversary offers.

“We would be looking at one to two new stores a year from next year and tentatively, the expansion will happen in next seven to eight years,” he added. The group is opening its new showroom in Kondapur in 2016. For expansion outside Hyderabad and Telangana, Cherma’s is likely to follow franchise route. “If people approach us and if we get right proposal, we will consider allowing franchise stores outside Telangana,” he said.

On online plans, he said Cherma’s would have an online market place by 2016 before launching a portal of its own a year later.“We are already in talks with Flipkart and Amazon and the initial discussions have taken place. We are waiting to finalise a few things, but we have put the plans on hold for now because we want to focus more on our retail schemes and 35th anniversary celebrations,” Pestonji explained.

The retailer will move forward on this after Diwali. “By 2016, our online market place will definitely be on. Probably by 2017, we will consider having our own portal,” he said. He however maintained that brick-and-mortar store culture would continue and account for major chunk of garment sales in the country as people in India would always like to touch, feel and try garments before buying. That’s not possible online and therefore, the store culture will very much exist, he added.

Capt. K F Pestonji, President, Cherma’s, while replying to a query, said that the group had clocked a total turnover of Rs 120 crore last year. “Garments business is not booming in the city now, but still we will cross the last year’s turnover mark this year,” he said.