Kishore Biyani plans to set up 1,500 stores over 18 months across top cities. Small Bazaar stores will be non-AC, basic format stores which will offer limited stock keeping units with massive discounts.
What is the Motivation in setting up – Small Bazaar chain?
Internal Consumer Marketing Research @ Pantaloon revealed that Indians prefer fresh supplies and proximity of stores in residential areas to make frequent purchases. More often than not, Indian consumers do not have access to good roads, cheap fuel or have large storage space to stock up the big volume purchases. The research further reveals that most consumers visited Big Bazaar and Malls for entertainment rather than making purchases. The footfall conversion is very low when you compare it with the Western World.
How is Small Bazaar different from Food Bazaar ?
Food Bazaar, Pantaloon’s large food format did not get the kind of volumes needed to be successful in the low-margin foods business since consumers visit the store for their monthly purchases and not for daily requirements.
We have reliably learnt that the first set of stores will open in Delhi / NCR for which they have already made Real Estate arrangements. In another development, Subhiksha has told that they will add 200 more stores.