In an interview, Vineet Jain says that tier 2, 3 consumers are turning more aspirational and trend-driven and the company is riding the ‘value pride’ wave
V-Mart Retail is sharpening its focus on India’s fast-evolving value fashion market, riding a wave of “value pride” among aspirational consumers in smaller towns, as tier 2 and 3 markets now contribute nearly 70 per cent of its business. Vineet Jain, Chief Operating Officer, V-Mart Retail said that rising Gen Z-driven demand, faster trend adoption and higher spending on fashion and celebrations are reshaping consumption patterns
In an interview with BW Businessworld, Jain noted that the company is pairing this demand tailwind with aggressive, cluster-led expansion and strong operating metrics. It reported a 24 per cent year-on-year rise in quarterly revenue to Rs 971 crore, alongside 12 per cent same-store sales growth in the last quarter of FY26. V-Mart continues to add 15 to 16 per cent retail space annually, supported by supply chain efficiencies, private label-led merchandising and an increasingly integrated omnichannel model.
Around 85 per cent of the company’s business is currently contributed by the fashion segment, with rest 15 per cent coming from the home and fast-moving consumer goods segment.
Bharat’s Aspirational Shift
V-Mart is witnessing a sharp shift in consumer behaviour across smaller towns, with tier 2 and 3 markets emerging as highly aspirational and fast-evolving fashion hubs. Jain highlighted how social media and connectivity have compressed trend cycles. He added that “customers are very, very aspirational, especially the youth generation… generation Z customers,” with fashion and celebration-led consumption in these markets now rivalling or even surpassing metros.
This shift aligns with the broader “value pride” trend the company is betting on, where customers take pride in making smart fashion choices. “This is reshaping demand and pushing us to deliver accessible fashion at compelling value,” he added.
V-Mart has been recalibrating its merchandising accordingly, strengthening categories such as coordinated sets, denim and leisurewear to cater to this evolving, youth-led demand in Bharat. “We have evolved our assortment, moving away from traditional categories like kurtas and strengthening salwar suits, coordinated sets, denim and leisurewear,” he noted.
“The market is pretty large… the room is there for many more players,” he said, while underscoring that “our offerings are very different… more relevant for the tier 2 and tier 3 market.”
Focus On Store Additions
This sharp Bharat focus is also reflected in its business mix, with “around 70 per cent of the business… from the tier 2 and tier 3 market.” The strategy is supported by cluster-led expansion and a growing retail footprint, enabling the company to deepen its reach in these high-growth regions while maintaining strong store-level profitability and operational efficiencies.
“We never go like we open the one store here, then one store there… generally, we go and conquer the market,” Jain said, explaining the company’s catchment-based approach. By focusing on covering entire regions, such as district centres across Uttar Pradesh and Bihar, V-Mart is able to build scale within clusters rather than spreading stores thinly across geographies.
“This year (FY26) we opened a significant number of these stores… the ever highest number,” Jain said. V-Mart added a record 92 stores during the year, taking its total network to 577 outlets across nearly 300 cities. During the last quarter, the company opened 29 and closed six stores
The same store sales growth (SSSG) was 12 per cent for the fourth quarter (V-Mart at 12 per cent and Unlimited at 9 per cent). The expansion strategy remains structurally consistent, with “15 to 16 per cent of the extra space” being added annually. The company is leveraging its multi-brand presence (V-Mart, Unlimited, and LimeRoad) to deepen market penetration.
“Every year we are adding like 15 to 16 per cent of the extra space in the kitty. I think that is the way we are moving with the expansion thought,” he highlighted.
Omnichannel Approach And Profitability
V-Mart is increasingly viewing omnichannel as a unified customer journey rather than separate channels. “Consumers are coming both the ways… online customers, they are going offline also. Offline customers, they are going online also,” Jain said, emphasising that “it is the one way of serving to the customer… not like two different business.” The company is embedding digital touchpoints within stores, enabling assisted commerce for walk-in shoppers.
He highlighted how this plays out on the ground: “if you are not getting any size or any options… immediately you can scan the QR code there and order… delivered in the next two to three days.” This “phygital” approach, supported by LimeRoad and in-store integrations, is helping V-Mart extend assortment beyond shelves, improve conversion, and enhance customer convenience.
On profitability, V-Mart continues to operate a structurally strong model backed by disciplined expansion and internal accruals. “We are good sustainable model… almost like a debt-free organisation,” Jain said, noting that growth is largely funded internally. A key differentiator remains store-level economics, with “almost like 95 per cent plus or 97 per cent plus” of new stores being “profitable from the day one,” eliminating the typical gestation lag seen in retail.
This profitability-led expansion comes amid sustained demand momentum, with the company reporting strong revenue growth and double-digit same-store sales growth in the last quarter. “We have not seen any kind of the demand reduction even as of today,” he added, expressing confidence in the long-term outlook, particularly as “tier 2, tier 3 market are like amazing,” reinforcing V-Mart’s continued focus on Bharat-led growth.
