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20% of Chennai’s Market with Organized Retail Supermarkets

May 9, 2008


In an exclusive study conducted by Kiranafirst, an NGO in Chennai dedicated to support the survival of neighborhood stores[Kiranas] has found out that Kiranas have become more prosperous while organized retailers are still struggling.
FoodWorld Retail,Chennai Citi CenterIt has been nearly 12 years now that Chennai was first introduced to the concept of Supermarket under the brand name FoodWorld [All the FoodWorld Stores are now known under the Spencer’s brand name]. In these 12 years, modern organized supermarkets [Subhiksha, Reliance Fresh, More for You, etc] have more than 250 establishments across Chennai occupying 700,000 sft of retail space and about 500,000 sft of backend logistics and distribution space.
A sample of 304 Kiranas were included for the study.

The research focused mainly on household expenditure – food, groceries, etc. The estimated market size is Rs 250 crore per month. Organized retailers control 20% of the market or their topline share is Rs 50 crore / month. However, the share of supermarket revenues is higher in high street areas and is between 30% to 35%, comparable with other developed markets in the Asian region. Stay tuned for more 🙂

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