Future Group wants to expand brand presence in tier-II cities
Future Group plans on increasing the proliferation of its smaller format stores in tier II and III cities. This move is directed to ensure that, in the next five years, 65% of the total sales come from its private labels. Future Retail will increase the number of Easyday stores across India; it also plans to up the Heritage and Nilgiri stores in the south. Here's more.
What's the plan?
Currently, Future Retail's Big Bazaar, including Food Bazaar, has 287 stores and there are 414 Easyday stores across the country. In the south, they have 120 Heritage and 154 Nilgiri stores. CFO of Future Retail, C.P. Toshniwal said that although Big Bazaar enjoys the highest penetration, the plan is to open "smaller format retail stores" to cater to tier II and III towns.
Currently, private label products bring 35% of the total sales. The target is to open smaller format stores and make it 65% by market penetration and brand recognition. Speaking of post-GST challenges, Toshniwal said, although there were minor supply disruptions, it was regularized within a few weeks. The firm handles most of its own merchandising and supply chain. Therefore, stocks got dispersed without hassles.