Though the company earlier planned to set up 16 such stores by 2014, Foodhalls concept head Avni Biyani said the expansion plans have been slowed and no new targets have been set. Our focus is on profitability and 16 stores will not happen. We would like to open two more stores in Delhi though, she told FE while launching the fifth Foodhall in Gurgaon on Wednesday.
More than 70% of the food items are imported and Foodhalls margins are anywhere between 30% and 32%.
While categories like fruits and vegetables, bakery and general merchandise are driving growth, Biyani said that pet foods and personal care sections need to grow faster.
Close to 25% sales are made in the bakery category, 15% in fruits and vegetables, 12% in electronics and rest in FMCG.
Foodhall deals with gourmet food compared with Food Bazaar catering to the mass market but the overlap of items sold between the two formats is close to 40%.