Promart, a new multi-brand clothing and accessories discount chain, owned by welknown Provogue Apparel group (2006 Turnover: Rs. 182 crore), will launch first of its retail stores in January, 2007. This store to be based in Ahmedabad will have retail space of 50,000 sq ft. Plans envisage adding more stores during the year, reports Reuters.
The chain will offer 20% to 60% discount on mid-priced brands apart from clearance of excess and seconds materials. The businesss model is based on the understanding that, to dispose off excess stocks, one clearance outlet will be required for every seven stores. Branded players, however, do not have adequate infrastructure for the same.
Each of Provogue’s stores is expected to chip in an average annual turnover of Rs.35 crore. Revenues, within the next three years, are expected to be evenly distributed between Provogue brand one hand and Promart together with Prozone mall development venture. In the coming years, while, Provogue is expected to drive profits, Promart will provide scale.
Provogue is evolving into a retail-centric group of branded business.