The Future Group will open a chain of stores called Food Hall to sell only foodstuff in an attempt to tap into India's largest retail segment that's growing rapidly.
It will convert about 16 of its Food Bazaar supermarkets and two counters in Pantaloons stores into the new brand. Food Bazaar shops sell grocery to general merchandise, but the new stores will stock only food items.
“We are making food a bigger play”, chief executive Kishore Biyani said. “Customers want more assortments and variety in food”.
Food is the biggest chunk of India's $435 billion annual retail business, with a share of 70%.
Food retailing is a $3 billion annual business for organized retailers that are expected to expand to $16 billion a year in 10 years, according to retail consultancy Technopak Advisors Pvt. Ltd.
Food retailing is a $3 billion annual business for organized retailers that are expected to expand to $16 billion a year in 10 years, according to retail consultancy Technopak Advisors Pvt. Ltd.
“There is a lot of variety in food in India that can also help a dedicated food stores,“ says Abhishek Malhotra, partner at consulting firm Booz and Co. “This can be a valuable proposition.“
Future Group also operates three gourmet Food Bazaar stores selling international brands. These would be folded into the Food Hall brand.
Biyani has ambitious plans to tap the growing food business and is targeting `10,000 crore revenue from food in four years.
Question:
Which factors have attracted to Kishore Biyani in food stores?