ARVND is working on a massive restructuring strategy for Megamart (MM) stores. It has reduced the store count for MM from 216 to 166 over the past couple of years due to restructuring
The management is opening Power Megamart stores of 10,000 sq ft plus and closing down 3,000-4,000 sq ft stores. Around 20% -25% of the total area is currently under Power Megamart and management plans to bring around 50% of its area under power Megamart by FY15
Power Megamart have around ~8% EBITDA margins primarily due to higher offerings of private labels and value retail format instead of discount store format.
