There’s no discounting this
Started in the year 2004 as a ‘value retail’ format, The Loot today has successfully set up 25 outlets across India, including in tier II cities. Recently, the retail chain launched a store each in Jabalpur and Raipur. Jay Gupta, managing director, The Loot ( India ) Pvt. Ltd, speaks with Zainab Morbiwala onexpansion plans and the concept of the store.
The Loot Philosophy
The Loot is a multi-brand discount store, offering customers a wide range of products with discounts ranging between 25 per cent and 60 per cent.
Incepted in September 2004, The Loot was the fructifying of a concept centred on sale of top quality branded readymade garments, shoes and accessories at discounted prices to consumers, throughout the year.
In contrast to other retail formats, our value proposition – and, consequently, the retail experience – is entirely unusual. The main differentiator between The Loot and other retailers is the fantastic discounts we offer. The Loot is the only outlet in India that offers a minimum of 25 per cent off on all merchandise all around the year.
The Loot’s strength lies in innovative and creative procurement and efficient supply chain management. This helps in getting a better pricing from manufacturers, enabling us to pass on the benefits to the customer.
Brands at The Loot
The store retails brands like Banana Republic, Gap, Old Navy, Mercedes, Kappa, Bossini, Adidas, Nike, CAT, ID, Spykar, Lilliput, Giny & Jony, Disney, Ruff Kids, Lee Youth, W, Welspun, Puma, Reebok, Fila, Umbro, New Balance, Van Heusen, Allen Solly, Arrow, Lee, Lee Cooper, Wrangler, Pepe Jeans, Parx, Park Avenue, Blackberry, Rifle, Ragz Jeans, Recap, SF jeans, Thomas Scott, Red Tape, Marco Ricci, and Rifle.
Expansion agenda FY 2008-09
We plan to roll out 100 stores by the end of 2009. It is a model that will work across the metros as well as tier II and tier III towns in the country. We plan to open stores in all state capitals, cities that have airports and also those with population above 800,000. The mantra at The Loot is to continuously innovate and keep adding newer experiences, which will bring the customers back again and again.
Investment
We plan to invest approximately Rs 50 crore for the proposed expansion.
New categories apart from bags, belts, shoes and clothes
We have with us Mercedes accessories that include tool kits, binoculars, paper knives and pens. We also have towels and napkins from Welspun and Reebok. We have recently launches undergarments for men from Eccentrics and Lee Cooper. In the future we plan to add eyewear, perfumes, watches and jewellery.
The concept of multi-brand discount stores in India
There is definitely opportunity for such a model in India. The industry figures point towards huge gaps and yet-to-be harnessed potential.
Retail market Size Percentage
Indian retail industry 1,200,000 crore 100%
Organised retail industry 55,000 crore 4.6%
Footwear, clothing and accessories 26,400 crore 48%
(Source: India Retail Report 2007)
Research also shows that almost 45 per cent of branded goods are sold under discounts (below MRP). The total potential in this segment was Rs 11,880 crore as of 2006, and this is growing.
In India, the awareness of branded products is on a steep rise. The Indian customer loves bargains and discounts, and it really works on the psyche of the customer.
Today’s customer does not look for mere shopping; it is an entire process and is determined by factors ranging from appropriate lighting and proper stacking of merchandise, to the quality of sales executives and after-sales service. It is the ‘entire shopping experience’ that matters.
