Revisits SKUs per store in catchment areas.
Big Bazaar, the ‘value’ retail format of Future Group, is investing around Rs 70 crore in setting up 10 new Big Bazaar stores in East over the next few months. Kolkata, currently has seven Big Bazaar stores and another four would be added over the next three months.
Big Bazaar expects Rs 280 crore revenues by June 2010 from Kolkata, thanks to the improving consumer demand, more retail options, as well as through revisiting stock keeping units (SKUs), and tailor-made, region-specific value offerings that the company is aiming at providing.
Big Bazaar touched Rs 245 crore as of June 2009 in Kolkata, contributing close to 60 per cent to Future Group turnover in the region.
Manish Agarwal, chief of operations in East, Future Group, said, “We will invest around Rs 70 crore in setting up new Big Bazaars in East. We will add 1.5 lakh sq ft to the existing 2.5 lakh sq ft of Big Bazaar in Kolkata. We are looking at Rs 800-1,000 of sales revenue per sq ft from our Big Bazaar stores in East.”
Future Group has its most profitable Big Bazaar on VIP Road in Kolkata which earns Rs 1,800 per sq ft sales. The store covers 25,000 sq ft.
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“Every catchment area’s requirements are different. So, as we embark on a major expansion drive for Big Bazaar stores in East, we are looking at stocking products that are relevant to people of that area first where our new stores would come up. For our existing stores too we are studying the requirements of the catchment area and redoing merchandise stocks,” said Agarwal.
Big Bazaar, has therefore, started what it calls ‘customer community program’, under which it studies the consumers of the surrounding community where each Big Bazaar is set up.
“We are also celebrating Big Bazaar eighth anniversary in East, between November 7 and 15. As part of the celebrations, we have invited consumers to SMS us if their birthday falls within this period, so that we can send each one of them a birthday cake. So far, we have received 17,000 SMSes,” informed Agarwal.