**Lenskart’s Retail Strategy Shifts Towards Smaller Markets**
Lenskart, a leading eyewear retailer, has seen offline retail contribute approximately 75% of its revenue, with a notable shift in store distribution favoring smaller markets. As of FY25, the company operates 698 stores in tier-2 cities and beyond, 469 in tier-1 cities, and 900 in metropolitan areas, as outlined in its draft red herring prospectus (DRHP). The metropolitan category includes major cities like Delhi, Mumbai, and Bengaluru, while tier-1 encompasses significant secondary cities such as Jaipur, Lucknow, and Indore. Tier-2 and beyond refers to smaller towns and rural areas.
The expansion into smaller markets has proven fruitful, with these areas now representing 34% of Lenskart’s domestic presence, a significant increase from 483 stores in FY23, according to the DRHP. This strategic move aligns with a broader trend in Indian consumer demand, as smaller towns become increasingly viable retail markets due to rising incomes and greater digital adoption. A joint study by the RBI Innovation Hub and Boston Consulting Group indicates that rural and semi-urban regions contribute nearly 47% of India’s GDP, with digital payment adoption reaching 30% in these areas, as reported by a Bain–CII study.
Analysts suggest that Lenskart’s opportunity lies not only in demand but also in cost advantages and competitive gaps. “Tier-2 locations offer rents that are sometimes 40–60% lower, allowing for quicker breakeven compared to tier-1 markets,” noted Varma. Furthermore, around 75% of Lenskart’s sales come from offline stores, with 75-80% of orders priced below ₹10,000, and approximately 60% falling within the ₹2,000 to ₹10,000 range, which is their primary pricing band. These markets still have limited branded retail options, presenting a significant opportunity for Lenskart.
In contrast, competition in metropolitan areas is intensifying. “There’s a clear trend of premiumization, with customers willing to spend ₹10,000 and above often gravitating towards global brands, making it more challenging for Lenskart to differentiate itself,” added Meena.
Lenskart has aggressively expanded its footprint, adding 1,215 stores over the past two years, marking an 81% increase. The company started FY23 with 1,508 stores and concluded FY25 with 2,723, including international locations. In FY25 alone, Lenskart opened 445 new stores and closed 111, resulting in a net addition of 334 stores. Store closures have remained modest, with 67 in FY23 and 59 in FY24.
As Lenskart continues to navigate the evolving retail landscape, its focus on smaller markets may provide a sustainable path for growth amid increasing competition in larger cities.
**FAQ**
**What percentage of Lenskart’s revenue comes from offline retail?**
Approximately 75% of Lenskart’s revenue is generated from offline retail.