Success of Subhiksha (Small Store Format)

Saturday, April 8, 2006



1. No frills and small retail size.
2. Focus on foods and grocery ( which constitutes 85% of sales)
3. Prices 9.5% cheaper than MRP
4. Majority of items sold are private labels, as margins on these are 3 times more than what FMCG offers
5. Indian customers prefer buying from neighborhood stores. Statistics show that 60 per cent of the grocery and food items that are bought are bought from hypermarkets, while the rest is bought from the local Kirana store.
6. While it is possible to have large spaces in global markets because there are many varieties available there, this might not be the case in India. So while you can have 4,000 sq ft for bakery in the US, you cannot have more than 500 sq ft in India as we don�t have that variety.
 

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