Retail majors across the country are all set to aggressively foray into the Tier II and Tier III cities by setting up a number of hypermarkets and supermarkets, as well as organising focused promotions to draw footfalls. This is to gain a first mover advantage to capture the growing market and to respond to the strong demand for branded goods in these cities.
Mukesh Ambani-promoted Reliance Retail is planning to set up about 30 RelianceMart hypermarket to include cities such as Ahmedabad, Kolkata, Pune, Chandigarh and Jaipur apart from cities like Mumbai and Delhi.
According to Raghu Pillai, president and chief executive officer, Reliance Retail, ?With the majority of retail majors flocking to cities like Delhi, Mumbai, Bangalore, Pune, Chennai and Kolkata, there is a tremendous opportunity for growth in Tier II and Tier III cities.
?Setting up RelianceMart in Tier II and III cities is aimed at providing international shopping experience to all customers at unmatched affordability, guaranteed quality and varied choice of products.?
Competitor Pantaloon Retail (India) Ltd is planning to set up Big Bazaar in 42 cities including Tier II and Tier III cities.
Currently, of the existing 66 Big Bazaars pan-India, almost half of them are in the Tier II (19) and Tier III (09) towns. In the coming year, the company is planning to add 22 stores in Tier II and 20 in Tier III cities.
Rajan Malhotra, CEO, Big Bazaar said, ?The customers in the smaller towns and cities are not accustomed to shopping in the organised retail malls. Realising this, Big Bazaar has undertaken a number of innovative initiatives like organising street plays, associating itself with local festivals, redesigning its merchandise mix for the area, involving in local festivals through sponsorships, and coming out with special offers for local festivals.?
