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Reliance, Aditya Birla and Tata's Star Bazaar are focusing
on large European-style hypermarts while old hands like Spencer's and
the Future Group are scaling up their hypermart formats, providing better
profitability, volumes and higher brand recognition, according to a report
by Economic
Times.
"Supermarts have already established brands. Now hypermarts can
leverage that recognition and create a captive customer in smaller markets.
European style of hypermarket with roomy isles and white lights seems
to be favoured by the new players in India", says a marketing consultant.
According to a Technopak, a retail consultancy firm, 66% of the total
domestic investments in retail (estimated to be at $1,011 billion by 2017)
would be done in hypermarts and supermarts formats. In the next five years,
32% of the new investment in retail is expected to be in the hypermarkets,
says a study done by them.
Typically, a hypermarket is weekend shopping destination that works on
low price points and high volumes, covers a large floor area (anything
from 40,000 square feet to 200,000 square feet) and has a larger catchment
area. It is a combination of supermarket and departmental store and stocks
large amount of product categories, including groceries, general purpose
goods to specific apparel and even automobiles etc.
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