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ALDO India eyes growth in tier 2 & 3 markets with AI-led retail

Premium footwear and accessories brand ALDO, a subsidiary of the Apparel Group, is intensifying its efforts to expand in tier 2 and 3 cities in India. The company is harnessing AI-driven insights and placing greater emphasis on athleisure to better align with shifting consumer trends, according to a company representative.

“While tier 1 cities remain core to our business, the next wave of expansion will largely come from tier 2 and tier 3 cities,” Arpit Kumar, assistant vice president at ALDO India said.

ALDO currently runs 73 stores across India, including ALDO Accessories outlets, and aims to substantially expand its offline footprint in the coming years.

Addressing the brand’s approach to online and offline growth, Kumar noted that offline retail remains ALDO’s strongest channel, aligning with the broader retail strategy of the Apparel Group. However, online platforms—both the brand’s own website and third-party marketplaces—are experiencing faster growth and play a vital role in ALDO’s omnichannel strategy.

“The shift to digital post-Covid has been significant, but our strength lies in delivering consistent brand experience offline, which we are now extending to emerging geographies,” Kumar noted.

While ALDO continues to cater to demand for office and occasion wear, the growing popularity of athleisure highlights a shift in consumer lifestyles and a rising preference for casual, comfortable fashion.

“The contribution from this category has grown steadily and remains a major ocus for our upcoming collections,” said Kumar.

ALDO is actively integrating AI tools to optimize its retail operations and elevate the customer experience. Kumar shared that the brand is investing in initiatives such as store-level heat mapping, gender-specific footfall tracking, and behavioral data analysis to gain deeper insights and improve in-store performance.

“There are ongoing AI projects aimed at better understanding who is walking into our stores and where they spend time,” he said.

“Consumers are increasingly seeking exclusivity, not just in products but also in how they are served. That’s an area we are investing in,” Kumar added.

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