After having created a strong foothold in the Indian hypermarket segment, retail giants such as Hypercity Retail (India) and Pantaloon Food Products, part of The Future Group, are going a step forward to launch branded small convenience stores in Tier I – IV cities.
Hypercity Retail (India) Private Ltd is planning to launch small convenience stores called ?Express City? with an area size of 4,000 sq ft per store, specifically targeted at women customers.
?Express City? stores will stock pre-cut and refrigerated fruits and vegetables, apart from refrigerated ready-to-cook food products and 12 meal options as well.
Says Andrew Levermore, CEO, Hypercity, ?We have observed that apart from a hypermarket format, it is essential to provide smaller convenience solutions for women shoppers. To begin with, three ?Express City? stores will be launched very soon as part of the company?s test-launch in Jaipur, followed by four additional stores and then a pan-India presence. Depending upon the availability of property, we will set up ?Express City? in other cities as well.? The company will invest Rs 1,500 per sq ft in Hypercity and Rs 2,300 per sq ft in Express City, he added.
Pantaloon Food Products is planning ?KB?s Fair Price Shop? branded 1,500 stores with an area size of 1,200-1,500 sq ft each in Tier I – IV cities in he next two years, at an investment of Rs 100 crore, Damodar Mall, head-Pantaloon Food division said.
According to him, ?As compared to other neighbourhood convenience stores, which stock 2,500 SKUs, KB’s Fair Price Shop will stock only 300 items. Products at our stores will be 8% cheaper as compared to other stores. This is possible because, our stores will not be air conditioned, and the 300 items will not have bar codes and will be sold out of cartons.?
These shops will also discourage home delivery and giving shopping bags for free. A total 13 KB?s Fair Price Shops are expected to come up in Delhi and a few in Mumbai too by September 2007.