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Why Citykart is one of the go-to value fashion retailer for small-town shoppers

North India’s rising value fashion retailer, is transforming affordable shopping in Tier 2 and Tier 3 cities

New Delhi: Founded in 2015 in Lucknow, Uttar Pradesh, Citykart has swiftly emerged as a key player in North India’s value fashion retail segment. Offering affordable fashion for men, women, and children, along with footwear, accessories, home furnishings, and general merchandise, Citykart has made its mark in tier 2 and tier 3 cities where organized retail was previously scarce.

With a mission to bring affordable clothing to non-metro regions, Citykart operates exclusively offline and has carved out a loyal customer base, becoming the ‘shopping mall’ for families in smaller cities and towns.

Value proposition

Citykart caters to the unique needs of families in Tier 2 and Tier 3 cities, offering fashionable products at price points that appeal to budget-conscious consumers. The retailer positions itself as an alternative to local mom-and-pop stores, which often struggle to match the quality and affordability that Citykart provides. Its in-house design team curates the fashion collections, sourcing products from vendors across India.

The company’s stores operate on a unique weekly delivery model, where new merchandise is introduced every week to keep the collection fresh, ensuring that customers always find something new with every visit.

Product diversification

While apparel remains the cornerstone of Citykart’s offerings, accounting for 82% of sales, the retailer has diversified into non-apparel categories, including footwear, luggage, cosmetics, personal care products, and household goods, driving additional growth. Citykart’s seasonal strategy sees a higher stock-keeping unit (SKU) count in summer, with 25,000–30,000 SKUs, and a reduced number in winter due to seasonal demand.

Offline-only model

Unlike many of its competitors, Citykart is a purely offline retailer. While there are no immediate plans to launch an e-commerce platform, the company is focused on offline growth, expanding its network of stores and deepening its relationship with customers in underserved markets.

Market position

In an increasingly competitive value retail space that includes brands like V-Mart, Zudio (Tata), Max (Landmark Group), and Reliance’s Youtsa, Citykart is positioning itself as the go-to value fashion retailer for non-metro shoppers. Its focus on affordability, weekly merchandise updates, and rapid expansion make it a formidable player in India’s growing value retail sector.

Expansion milestones

Since its inception, Citykart has grown rapidly, reaching a significant milestone of over 100 stores in 2023. It now operates over 107 stores across 76 cities in 9 states, including Uttar Pradesh, Bihar, Odisha, Assam, Madhya Pradesh, Chhattisgarh, West Bengal, Jharkhand, and Tripura. These outlets collectively span 8.95 lakh sq. ft. of retail space, offering a diverse range of products at budget-friendly prices.

Employment generator

Citykart employs around 2,800 people, approximately 30% of whom are women. With its continuous expansion, the company is a significant employer in the regions it operates, creating new job opportunities with each store opening.

Growth plans

Looking ahead, Citykart has ambitious plans to deepen its footprint, particularly in Uttar Pradesh and Bihar, while exploring 15 new regions across West Bengal, Odisha, Jharkhand, and Assam. The company aims to open 300 stores by 2026, with an immediate goal of launching 40–45 new stores by the end of the current fiscal year, backed by a Rs 100 crore investment.

This expansion is expected to generate 700–1,000 new jobs and increase revenues to Rs 950–1,000 crore by FY25, a sharp rise from Rs 626 crore in FY24.

The retailer’s expansion is part of a broader “fortification strategy” aimed at strengthening its presence in existing markets and aggressively entering new territories. With plans to continue expanding aggressively into new regions, Citykart is well on its way to solidifying its presence as a leading name in value retail. The company is prepared to adapt and grow with changing market dynamics while remaining focused on delivering affordable, high-quality products to its ever-growing customer base.

The post Why Citykart is one of the go-to value fashion retailer for small-town shoppers appeared first on India Retailing.



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