Posted by Dr. Vishesh Rawat
Aadhaar, the rural market-focussed 70:30 joint venture (JV) between the Future Group's Future Ventures India and Godrej Agrovet, hopes to turn around and starts making profits, by 2011.
Aadhaar, a modern retail chain operating in semi-urban and rural markets, has opened around 70 outlets across the country. The chain has mapped out an expansion plan of around 200 stores to be achieved over a period of time and therefore needs to balance the strain of losses from new outlets against the profits from older outlets as it expands in rural India.
The retail chain targets to leverage the Godrej's brand franchise with consumers in these markets and Future's expertise in the retail business.
"We have been steadily expanding the chain under its new chief executive officer Saurabh Chaddha as 3,000-sq-ft format stores.
On an average, each outlet takes around two to three years to become profitable," said a top Godrej official in charge of the group's retail interests.
Damodar Mall, group customer director, Future Group said that the group has reconfigured the format to meet consumer needs. "To do this, we have also changed the look and feel of the store," he said.
In the restructured format, the stores now sport the strengths of the JV's promoters by way of `The World of Godrej' section and `Big Bazaar Best Deals'. While the former offers a selection of products from the Godrej Group ranging from furniture, locks, white goods and its fastmoving consumer goods (FMCG) range, the latter section offers a selection of fashion and general merchandise selected from Big Bazaar outlets.
Tuesday, September 22, 2009
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