India: Future Group looking at small stores expansion

Date : 26 May 2017

Future Group which operates Future Retail, a leading grocery retailer in India, plans to have 10,000 neighbourhood stores by 2021.

Growing from a network of acquisitions

Future Retail has 300 large and small format stores under Big Bazaar, Fashion at Big Bazaar and Food Bazaar. However, the growth of these will be limited to 400-450 in the next four years. After acquiring Easyday neighbourhood stores from Bharti Retail in May 2015, Future Retail has increased their count from 186 to 420. Nilgiris, another small store format from the South under the Future Consumer arm, has 153 stores. Heritage Foods based in Hyderabad has 124 small stores, and they are now in the acquisition process. The stores under these three banners will grow to 10,000 by 2021.

Building an ecosystem to ensure profitability

Future Enterprise provides backend support of logistics and supply chain for the retail group. It is building up its capabilities for big data to acquire and retain customers. The group also has a food park set up to produce wheat flour and biscuits. These food items will be sold at their own stores and at other retailers. Future Group's ecosystem will include sourcing, production, supply chain, logistics and well penetrated outlets. It is likely to offer products at a price that is highly competitive. The group has charted a strong growth strategy, supported by a system to deliver profits. We believe the company is well on its course to strong growth.