Landmark Group’s brand splash, apparel retailer, expects the increase in its turnover by 20 per cent this year from about Rs. 3, 000 crore, following the expansion in new African Markets and launch of more outlets in India.

Splash will invest about Rs.100 crore in India in three years to proliferate the sales to Rs.300 crore in the country, chief executive Raza Beig said in an interview.

The company will inaugurate 30 stores of about 8,000-9,000 sq. ft each in cities across India in three years, Beig said. Splash currently operates seven shops in India, including the one it opened in Bangalore this week.

The Dubai-based Landmark Group has marked the sales of about $5 billion last year from retail and healthcare. The group owns the Lifestyle department stores and Max Hypermarket chain in India.
India contributes a little part in Splash’s overall business, which comprises 154 company-owned stores and 60 licensed outlets of brands such as Lee Cooper and Bossini across 12 countries mostly in the Middle East. The company will also enter five or six new countries in Africa this year, Beig said.

Splash’s expansion in India comes as shoppers are cutting down the purchasing on items such as on clothes due to persistent inflation and slowing economic growth. Companies such as Shoppers Stop Ltd have said demand has been soft and warned that unless economic conditions improve, consumer sentiment will worsen. Pantaloon Retail (India) Ltd also said in August the economic slowdown has hurt sales and it would focus on inventory management and reducing costs.

Beig maintains confidence that Splash, with an regular sale price of Rs.900, will provide enough incentives to Indian consumers to drive strong growth. “I agree that demand has been soft. But, things have also been bad because (in apparel retail) there’re no new shapes, sizes and colours for consumers to choose from. Everyone has been doing the same me-too product.”

“An economic downturn is a good time to expand because real-estate costs will usually come down, even though it would take time for footfalls to grow,” said Anand Ramanathan, associate director at KPMG Advisory. “In India, access to capital is restricted due to high interest costs, so a debt-fuelled expansion is risky. But companies that have strong capital positions generally take advantage of a downturn to expand.”