Jaipur, The K Raheja group has lined up an investment of around Rs 1,500 crore for setting up 68 hypermarket stores named Hypercity and 250 convenient stores christened Expresscity across the country in five years.
Hypercity Retail CEO Andrew Levermore, while launching the group’s first Expresscity store in Jaipur, told ET that the group is betting big on retail revolution which is sweeping the country right now.
“Apart from Hypercity and Expresscity hypermarkets, we would be introducing a third format which will cater exclusively to hi-end customers only. The first such store of 10,000 sq ft, which is yet to be named, would come up in Mumbai by May 2008. It would ideally be a gourmet store housing luxury food items and select grocery items. If we obtain the licence, we would also offer worldclass wine to our premium segment customers. Besides the international standard packaged food, it will also have an interactive kitchen with super speciality chefs offering all kinds of dishes right from Italian, continental to our own south Indian,” he said.
The Hypercity offers its customers valued-added services like consumer finance, ATM facility, telecom services, pharmacy, bakery and restaurants etc under one roof while convenient stores, Expresscity, offer daily-use products such as groceries, dairy products, bakery items and meals.
The South African CEO of Hypercity Retail (India) Ltd said that the group is eyeing tier II and tier III cities as well for its rapid expansion plans. “Metros and tier I cities are automatic choice for any retail player. We wish to become anchor for development in tier II and tier III cities like Jaipur, Amritsar, Aurangabad and Lucknow etc. While Hypercity would cover 80,000 sq ft of floor areas, Expresscity would cover 2,500-4,000 sq ft. After evaluating the response of Expresscity in Jaipur, we would be chalking out our progression plans,” Mr Levermore said.
Terming Indian market as vast and diverse, Mr Livermore said that the Indian retail space can easily accommodate retail giants as well as around 12 million kirana stores across the country. “There’s opportunity for everyone.
While, pop & mom stores can give customers personal touch and home delivery facilities, retail biggies know each customer individually. When modern retail in South Africa was growing, the mom & pop stores formed cooperatives for better margins bringing them on a par with modern retailers. The kiranas can contemplate replicating this model in India to combat the fear they are having for the organised retail players,” he said.
Source : Economic Times, India