Home improvement retailer MR DIY India is gearing up for its next phase of rapid expansion, aiming to reach 1,000 stores by the end of 2029, as Group Chief Executive Officer (CEO) Vikas Gupta believes the retailer has "barely touched the surface" of the Indian market. The company is targeting 40 to 50 per cent year-on-year (YoY) growth over the next three to four years, backed by aggressive expansion into tier 3 and 4 markets, a growing product portfolio and a sharper focus on operational efficiency, the top official said.
In an interview with BW Businessworld, Gupta stated the retailer will cross the 500-store milestone by November-December this year and continue adding 15 to 20 stores every month. He also highlighted that MR DIY is strengthening its India play through higher local sourcing, while introducing around 400 new stock keeping units (SKUs) every month and expanding newer categories such as cosmetics to cater to evolving consumer preferences.
“Over the last one year, we have been growing more than 60 per cent year on year. With the pace of stores that we are opening and a good SSSG, I am hoping that we continue to deliver at least 40 to 50 per cent growth over the next three to four years,” Gupta noted.
Making Most Of The India Opportunity
Gupta added that MR DIY India's growth story is still in its early stages despite the retailer's rapid expansion. "At 440 stores, with the kind of assortment and the model that we have, I think we have barely touched the surface," he said.
Drawing a comparison with the group's global footprint, Gupta said MR DIY operates 6,500 stores across 15 countries, while markets such as Indonesia, the Philippines and Malaysia each have more than 1,300 to 1,400 stores despite being much smaller than India. "In India, we have just barely touched and scratched the surface," he said.
The CEO added that the next phase of growth will come from expanding deeper into tier 3 and 4 markets while increasing store density across tier 1 and 2 cities. "Expansion remains a priority," he said, alongside improving operational efficiency, introducing "newer, better SKUs", enhancing affordability and strengthening customer experience.
On store productivity, Gupta said same-store sales growth (SSSG) has been "fairly, fairly good" this year after a "slightly muted" consumer environment last year, with the company witnessing an "extremely solid pickup". He attributed the momentum to improving brand awareness, expanding the store network, introducing around 400 new SKUs every month and focusing on operational efficiency "rather than only playing price as a lever". Gupta added that the retailer has also opened five to six flagship stores over the past year.
The New Definition Of Value
Gupta added that the definition of value has fundamentally changed over the last few years. "Consumers are not only looking for affordable prices, but they are also looking for quality and convenience. They are looking for trust in brands and quality of products that are being offered," he said, adding that for a value retailer like MR DIY, "it is very important to deliver value consistently to the customers."
According to him, improving the shopping experience has also translated into "significant uptick in terms of sales and throughput in the stores." "There has been a redefinition of value," Gupta said, arguing that "value was perceived to be a synonym for cheaper. That is not true anymore." He cited the example of a five-foot mirror priced at around Rs 950, saying that despite not being a low-priced product, it has seen "a significant amount of interest", with customers registering their names for restocks and more than 30,000 to 40,000 people posting about the viral mirror on Instagram.
"Clearly, value is not only pricing; value is what customers' perception is in terms of the quality of product as well as the pricing," he said.
On the evolving value retail landscape, Gupta said consumers today are "largely looking at quality, convenience, as well as variety", irrespective of whether they shop through offline retail, ecommerce or quick commerce. While "a lot of players are trying to optimise on some SKUs without giving that degree of variety", he said MR DIY has focused on offering "a significant amount of variety" instead.
That strategy has helped the retailer achieve store conversion rates of upwards of 80 per cent, compared with 20 to 30 per cent, at best 40 per cent, across most retail formats outside supermarkets, he explained.
Beauty Bet And Category Play
Gupta noted that the company's recent entry into cosmetics was driven entirely by consumer demand, with more than 40 per cent of MR DIY India's business coming from younger consumers aged roughly 12 to 30 years. "A lot of consumers kept asking for more and more products and cosmetics," he said.
MR DIY recently introduced its beauty range with 100 to 120 SKUs and plans to expand it to 400 to 500 SKUs by the end of the year. "The initial pickup has been really good," he said.
The Group CEO added that the beauty market still has "very limited players who are affordable". "What we are trying to balance out is to maintain a balance between a good quality product as well as affordability," he said, adding that consumers are willing to buy cosmetics from the retailer only after developing trust in the brand. "If you are able to offer that, hopefully, this category should continue to pick up," he added.
Beyond beauty, Gupta said MR DIY's business is anchored by three broad category clusters. Household and furnishing products contribute 45 to 50 per cent of sales, while youth-focused categories such as stationery, sports, toys, cosmetics and jewellery have been the fastest-growing segments over the last five to six years.
He added that niche categories, including computer accessories, pet care, hardware, and gardening, remain underserved by organised retail, allowing MR DIY to offer greater quality and variety to consumers.
Local Sourcing, Private Labels And Smaller Cities
Gupta said scaling a network of more than 400 stores, each spanning around 7,000 square feet, while ensuring the availability of over 12,000 SKUs across the country has required significant investments in supply chain and sourcing. According to him, the retailer has rapidly strengthened its local sourcing capabilities by expanding category-specific teams and working closely with suppliers. "Today, 35 to 40 per cent of our merchandise is sourced locally," he said, adding that the company has "very aggressive plans" to further increase sourcing from India by enabling supplier growth and leveraging the government's manufacturing push.
On private labels, Gupta said every product sold by MR DIY India is company-owned, with brands such as Mr Toys, Mr Dollar and Adorea operating under its umbrella. "We believe that this is to ensure that the quality is consistent for customers," he said, explaining that the company follows a rigorous audit process for third-party manufacturers to maintain quality while offering value. He added that although the retailer currently operates three to four private labels, it plans to launch more category-specific brands over the next few years. |
