Rearranging Home Store

In a bid to become a leaner organisation, Home Stores (India) Ltd (HSIL) has shut down four of its own stores and five franchisee outlets.

"There has been a shift in focus on how to run the business," says Abdullah Mohammad, managing director, HSIL. "We are looking at penetrating into the malls. Our plan is to add another 45 to 50 Home Stores in the next two years," he says.

Mohammad says that the company has shut down a few small stores and does not want to get into franchisee agreements with other companies. "We want to take our products and services to a larger audience," he says.

The retail company HSIL owns a home decor store, The Home Store as well as Sabka Bazaar, a supermarket chain. As a result of restructuring its business, HSIL expects to touch a turnover of Rs 500 crore in the next four years. At present HSIL owns 20 Home Stores and 22 Sabka Bazaar outlets.

The company will open 20 more stores. including three large-format departmental stores in the national capital region this year. While the company has franchisees in Bangladesh and China, talks are on to open one in Sri Lanka.

HSIL officials may be upbeat about their future plans, however industry watchers sound a warning note. Says retail consultant Namita Jain: "It has to find a niche for itself. It's biggest challenge will be to position itself which would draw customers." There are other hurdles too.

Most retailers have a problem with unprofessional suppliers. Also the clutch of suppliers is limited leading to retailers stocking the same products. Cheap imports are also not the solution. For HSIL to grow it not only has to have a vision but deep pockets too.