Guwahati, Nov. 25: Future Group is going “big” in the Northeast.
The group, which runs Big Bazaar, the country’s largest retail chain in value and lifestyle formats, along with Pantaloons, has not only opened two outlets in the region this month, but plans to scale up its high-margin apparel business in Guwahati, which it considers an important market.
“It has been over four years since we forayed into the Northeast with our first 75,000 square feet outlet in Guwahati. Our experience has been very good and the operations have been smooth so far. The response from customers has been positive and I feel we have been able to instil confidence in consumers about our products, which is why we have opened two more outlets — one at Jorhat on November 3 and the other at Silchar a week later,” Manish Agarwal, business head, Big Bazaar (east zone) told The Telegraph.
The outlets in Jorhat and Silchar have retail space of 28,000 sq feet each.
On expansion outside Assam, the official said the fourth Big Bazaar outlet would open in Tripura. “We are planning to open one more Big Bazaar outlet in Agartala by January. Likewise, we have plans to penetrate new markets in other states of the Northeast as well,” Agarwal said.
Given the fashion-conscious client base in Guwahati, the company plans to go aggressive to boost its apparel business.
“Guwahati is an important market and we plan to expand further in the city by opening more outlets in course of time. As of now, we are planning to open our first standalone fashion store, FBB (Fashion at Big Bazaar) at Paltan Bazar in about three to four weeks’ time,” the official said.
Big Bazaar currently has over 160 hypermarkets and 25 (FBB) standalone fashion stores. The standalone FBB stores have an average space of 15,000-25,000 sq feet.
The retail chain, given the boom in the sector of late, is optimistic about business growth in the Northeast.
“As far as the Northeast is concerned, the market is evolving. Business has grown over the past four years and hence, we plan to add new categories. For instance, at the Guwahati outlet, we had opened a food court and a bakery to add to the existing formats. The response has been good and we are exploring other areas where we can improve upon,” Agarwal said.
Future Group’s thrust on expansion comes at a time when community retailing has evolved as the new business model. In this regard, the company has created a sub-brand, Big Bazaar Family Centre, which focuses on community retailing. In accordance with the model, the group plans to reorient the Guwahati outlet into a Big Bazaar Family Centre. New products catering to the shopping needs of a family will be included under the model.
“We are still working on applying this model to the Guwahati outlet. Hopefully, it will be reoriented into a Big Bazaar Family Centre in a few months’ time,” Agarwal added.
Over the years, the retail sector has witnessed substantial growth with chains such as Vishal Mega Mart, which is now spread across the cities and towns of the Northeast, and Pantaloons, which will soon have its second outlet at Paltan Bazar, catering to the tastes and preferences of consumers.
Then again, V-Mart, the multi-brand Indian retail chain, plans to go aggressive in the Northeast and open its first outlet in Assam in 2014. As of now, the chain, which currently runs 62 outlets in 52 locations of the country, is focusing on four destinations – Guwahati, Tinsukia, Dibrugarh and Jorhat.
Industry sources maintain that a growing mall culture, consumerism and increasing disposable incomes have accounted for the favourable climate for retailers to open shop in the Northeast.
In March this year, Reliance Trends, the apparel, luggage and accessories specialty format of Reliance Retail, opened the region’s first outlet, spread over 25,000 sq feet, at Lachit Nagar here. “We plan to open 12 outlets in the Northeast in three years’ time,” an official of Reliance Trends told The Telegraph.
