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Metro Brands Limited (MBL), previously known as Metro Shoes, is an Indian multi-brand footwear retail company based in Mumbai. Metro Brands operates from a network of 766 Stores in 182 cities across 31 Indian states and Union territories. Originating in 1955, It is one of the largest footwear retailers in India today, housing brands such as Multi Brand Outlets (MBO) of Metro, Mochi, and Walkway alongside Exclusive Brand Outlets (EBO) of the global brand Crocs.
MBL’s revenues increased by 15 percent compared to the previous year, particularly driven by the addition of new stores. However, the growth rate in top-line revenue has slowed down comparatively to its stronger performance in the same quarter last year, which was the first normal quarter after the COVID-19 lockdown that saw a surge in demand. MBL managed to maintain its gross profit margins when comparing year-over-year.
In response to this, MBL has been making significant strides in the Indian Footwear market lately, primarily through Its massive expansion plan. This plan includes the opening of 200 new stores across India in the next two years, with a view to increase profitability. Furthermore on the itinerary, is the scaling-up of the recently acquired sports and athleisure brand FILA, through effective product positioning and improved distribution strategies. Also giving impetus to the brand’s growth is the acceleration of the brand’s e-commerce wing.
Speaking of MBL’s expansion, it intends to expand its operations in a strategic manner by focusing on cluster-based expansion, which involves opening new stores in proximity to its existing ones to avoid sales overlap. Additionally, it plans to engage in backfill expansion by introducing new sub-brands near their current stores.
In addition to boosting its presence at existing locations, MBL has its sights set on entering new markets, specifically in Tier 2 and Tier 3 cities. As MBL already operates in 182 cities, it recognizes the immense growth potential in tapping into new, previously untapped cities.
Touching on the acquisition of the FILA brand, MBL is presently in the process of repositioning the brand and clearing-up old inventory. After which, it aims to increase distribution, potentially multiplying FILA stores levels from a current 23 to a couple hundred through both exclusive and existing outlets.
Notably, MBL recognises a rising consumer inclination towards online shopping in post the COVID-19 pandemic and is therefore significantly increasing its e-commerce sales. MBL's online sales have experienced a remarkable 71 percent growth since COVID-19. Using E-commerce, MBL can enable itself to capitalize on a larger customer base. Currently, it produces major sales through six third-party websites and three own-brand websites.
MBL is integrating its physical stores with online platforms to ensure seamless inventory availability, with the ultimate goal of delivering a multi-channel experience to its customers.
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