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Posted: Tuesday, August 14 2007. 11:00 AM

Future to open 1500 small Fair Price Shops

Kishore Biyani-promoted Future Group, whose flagship Pantaloon Retail is country's largest listed retail chain, has announced setting up over the next two years of a new format 1,500 shops retail chain to be called KB's Fair Price Shops, in top eight markets of the country, reports indiaretailbiz.com.

The new chain will signify the group's entry into small format, last-mile retail space. The group, which owns famous retail brands like Big Bazaar, Food Bazaar, Pantaloon, Home Town, Central, and e-Zone, has since its inception been active only in the large format stores space.

"Our target is to provide essential items cheaper than the market price and we are looking at a 20% market share of the neighbourhood retail market," said Narendra Baheti, Managing Director, Pantaloons Foods. Positioned as no-frills, fair price shops chain, with a tag line of "sare jahan se sasta," the new retail chain would alter a few rules of the trade in India, added Baheti.

The new non-air conditioned, no-frills, retail chain, with each shop measuring an average of 2,000 square feet retail space, will be based on neighbourhood, convenience, stores concept. Stocking only a limited variety of items required to meet daily needs of its customers, the chain proposes to offer merchandise at 10% lower prices than market for national brands and up to 20% lower than market prices for local brands.

Beginning with Mumbai and Delhi on a pilot basis, the chain plans to later on spread out to other metro and mega markets of Kolkata, Ahmedabad, Hyderabad, Bangalore, Pune and Chennai.

KB's Fair Price Shops, will bring the group into direct competition with no-frills, small format player Subhiksha, which has already set up over 780 stores, and is well on its way to achieve the target of 1,200 stores by March, 2008.

This will also put KB's fair price shops into competition among others with Ambani's Reliance 'Fresh,' RPG's Spencer's Daily Express, Birla's More, Piramal's Trumart, and Wadhwan's Spinach, which are also active in neighbourhood, convenience space, albeit with more glitzy presentation.

The cost of setting up KB's fair price shops, which are initially to be owned by the group, according to Baheti, would be around Rs 280 a sq ft against Rs 2,000 a sq ft required for a modern super market store.

Source: www.indiaretailbiz.com

 

Comments:

 
Posted By : Uday Sahu
Jan 25, 2008 1:27 PM
According to this article Fair Price store will give a tough competetion to kirana Stores.But don't you think the credit facilities provided by Kirana stores will impact the productivity of Fair store as customers have become loyal to kirana Stores due to the credit facility?
 
 
 

 
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