Restructuring existing stores to accommodate new formats
Future Group is planning to invest Rs 100 crore in East India over the next four months, in setting up new stores and in re-doing existing stores to accommodate new formats.
Future Group currently commands 2 million sq ft in East with all its formats put together.
To begin with, the company is restructuring its Big Bazaar store on Lee Road and converting it into a Brand Factory, due for launch before the Durga Puja. Once operational, the company would look at restructuring two to three more stores in Kolkata to accommodate formats that are not available in the city right now.
Sandeep Marwa, CEO - East of Future Group, said, “We are investing close to Rs 100 crore in setting up new stores over the next four months or so. Also, we are converting our Big Bazaar store at Lee Road into Brand Factory. We have retained the Food Bazaar there.”
“We wanted to launch some of the formats in Kolkata that were not available. We wanted to launch Brand Factory and Central formats in Kolkata but for that, space and environment of our existing stores had to match. After all, a Brand Factory or a Central in Kolkata should look like what it is in other cities,” Marwa reasoned.
Though Central could not be launched, the Brand Factory format matched Lee Road Big Bazaar’s environment, space and other facilities. The company is retaining its Food Bazaar inside the store since it was bringing in good revenues for the company.
“Once Brand Factory starts rolling before the Durga Puja, we would look at converting around three of our existing stores in Kolkata into formats that are not available here right now. The volume is important so that we can advertise the properties cost-effectively,” Marwa said.
Among other plans, Future Group would add another 4 lakh sq ft in East for Big Bazaar, to its existing 10 lakh sq ft. While Pantaloons would add another 40-50,000 sq ft in the next four months, to its existing 4 lakh sq ft in East. Future Group currently commands 2 million sq ft in East with all its formats put together. “Consumer sentiments have been improving continuously and our sales growth this year over corresponding previous has been exceptional,” Marwa said. For instance, HomeTown, launched in Kolkata two months ago, clocked sales of Rs 1 crore on August 16, a figure that Marwa claims is highest in any Future Group store within two months of launch.
Again, during Big Bazaar’s five-day ‘Mahabachat’ offer, the stores in East clocked a revenue growth 30 per cent higher than corresponding period in the previous year. Pantaloons, which had also put its inventories on sale, recorded 25 per cent growth in revenues over corresponding previous.
“During the Mahabachat offer, we sold 11,000 insurance at Rs 79 per person. Footfalls were more than 10 lakh in East across all Big Bazaar stores,” Marwa added.
During the five-day Mahabachat offer, Big Bazaars in East sold 35,000 jeans and 15,000 sarees, while its revenues from foods business grew 40 per cent over corresponding previous. Big Bazaars sold 2.5 lakh litres of oil, as oil was priced at Rs 4 cheaper per litre compared to market price. Also, during this period, Big Bazaars sold 50,000 kgs of rice and 1 lakh litre of cold drinks.
