New Delhi: Electronics and consumer durables retail chain, Vijay Sales, is eyeing a revenue of Rs 7,000 crore in FY23 and aims to cross the Rs 10,000 crore mark by FY25, said Nilesh Gupta, director, Vijay Sales in interaction with ETRetail. He added that the retailer saw demand for entry levels of products coming back during Diwali, resulting in volume growth. Edited excerpts below:
How was the festive season for you?
This was one of the best festive seasons we have seen in the last few years. After a long time, we saw volume growth along with value growth. Except for air conditioners and refrigerators, every category recorded growth. Televisions performed best in both value and volume growth terms, followed by mobiles and laptops. Overall it was a very good Diwali.
Did you see the demand for mass products coming back, which has been under pressure lately?
Post-COVID, mass premium products have been witnessing high demand and sales. However, this Diwali we saw a slight resurgence in demand for entry levels products resulting in volume growth. Thus, mass consumers are coming back.
How many stores do you have and how much do online and offline contribute to your sales?
We have a total of 121 stores currently. We open 10-20 stores a year and we’ll continue with that plan.
Online contributes 2-3 per cent to our sales. However, we are slowly and steadily moving towards an omnichannel strategy, where our online presence is helping in offline sales.
There’s a constant pricing war in online vs offline channels. What’s your strategy to deal with that?
Our strategy is very simple. Whenever we are not losing money we match the price offered by online channels. But if we are losing money and online is selling below cost, then we let it be. 95 per cent of the time we are able to match online prices.
What kind of impact do you see on margins due to this pricing tussle?
Margins have always been under pressure in our industry. Off late, since online and other players have become very aggressive, margins are at a pressure point and I think it will continue to be under pressure for the next 2-3 years.
What’s your revenue target for FY2023?
Our FY23 target is Rs 7,000 crore and we are inching towards that. If everything remains normal, I think we’ll be able to achieve that.