At the front end of the food business, as most food retailers in India have learned, there is really no one-size-fits-all formula. Brands today have varied formats – from large-scale hypermarkets to smaller supermarkets. The crucial part here is to get the mix right across these varying formats. Retailers will need to strike the right balance to be truly successful.
Large-scale formats work well in key metropolitan cities where the trend increasingly is for families to do weekly shopping trips for household supplies. The challenge on this front often comes from the inadequate supply of space and land bank to build large-scale hypermarkets. With the smaller supermarket format, fonding the right location is the key. India’s high population density, and the presence of well-entrenched unorganized retail often makes this a challenging proposition.
The focus for most retailers will be to capitalise on smaller formats, which are more cost-effective. Smaller convenience stores and supermarkets are the way forward for most big retail chains. This format will continue to grow in the coming years, as retailers look at sizably growing their presence in the market.
The key future focus across these formats is to improve footfalls and basket size. Brands need to improve in this area while ensuring that they continue to provide excellent customer service, convenience and exceptional value to give customers a truly remarkable shopping experience.