Hypermarket

Retail is an industry where it is all about detail. Hypermarkets around the world are always large boxes on cheap real estate, on the edge of big cities with good infrastructure where customers happen to come and shop at least once a week or once in 10 days. The consumer is prepared to buy food, apparel, and electronics, and put everything in the same trolley. This model is not applicable to India.

Hypermarkets in India will not be the scale of hypermarkets elsewhere in the world. They could be 55000 sq. feet size for tier II cities and 75000 sq. feet for tier I cities.

In smaller cities, they find large well-laid out store intimidating. As a brand, one can be considered premium or price sensitive. A crisp looking store is given elsewhere. It is not considered expensive. A hypermarket can lower the prices by subsidising the prices of food items from the margins of the non-food items. It is an efficient format.

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