The $364 bn Indian retail industry is all set to witness modern retailers changing geographical landscapes of their retail stores in Mumbai, Bangalore and Delhi and relooking at their cost structures, in the Q1 of 2009.
According to industry experts, with competition becoming more intense on the front-end, the move will cut down costs by 10% to 40%, streamline supply chain by enhancing operational efficiencies and optimizing resources. For the purpose, retail majors are currently looking at outsourcing high-end third party logistics which will enable retailers to save more. Says Vineet Kanaujia, general manager, marketing, Safexpress Private Ltd, ?Many retail majors have approached us in order to meet their evolving needs and we hope to finalise with them very soon.? However, due to competitive strategies, Kanaujia refused to divulge details.
Radhakrishna Foodland Private Ltd has recently shut down its Foodland Fresh store in New Panvel, Navi Mumbai, and is understood to relocate it closer to its warehousing facility in Mumbai in order to save transportation costs, sources close to the company said. The move by Radhakrishna Foodland comes at a time when D-Mart set up its outlet in the vicinity and turned a big crowd puller. Reliance Retail has also recently launched Reliance Fresh stores nearby and has started offering huge discounts on buying fresh fruits and vegetables. Reliance Retail is also in the process of relocating its 80 retail stores to locations in metroes which the company feels will prove profitable. R Subramaniam, managing director, Subhiksha says, ?Subhiksha has shut down over 80 stores in select metroes due to poor performance in late 2008. But we are now in the process of relocating stores to new areas in order to streamline supply chain and enhance operational efficiencies.?
RPG Cellucom which had started looking at upmarket locations to set up its mobile retail stores after shutting its 18 retail stores in its third quarter ending December 2008, is continuing with its plans to relocate its other stores in metroes. ?Wherever we find a suitable location, we will replace the base of existing stores with new locations,? sources close to the company told FE.