The Hindu Business Line : Big Bazaar to expand footprint in South

From just four retail outlets two years ago, the chain now has 23 outlets across the four southern States. The turnover from the region is expected to touch Rs 1,000 crore in the company’s current financial year that ends in June. Now it is looking at further expanding its footprint in the South.

Mr M.Venkateshwar Kumar, Business Head-Big Bazaar, Pantaloon Retail (India) Ltd, Bangalore, shares his plans with Business Line. Excerpts from the interview:

Please trace the growth of Big Bazaar in the South since you began operations?

When we began our operations about two years ago, we had just four stores in the South — two each in Bangalore and Andhra Pradesh. Now we have grown into a chain of 23 outlets in all the four southern States. We have 12 stores in Karnataka, of which eight are in Bangalore, six in Andhra Pradesh including four in Hyderabad, two in Tamil Nadu — one each in Coimbatore and Chennai and three in Kerala —in Palakkad, Trichur and Thiruvananthapuram.

Our business turnover in the South, which was Rs 200 crore in the first year when we had four stores, is expected to touch Rs 1,000 crore when our financial year closes in June 2008.The South contributes about 35 per cent to the overall business of Big Bazaar.

Are the small retailers apprehensive about the entry of the corporate sector into the retail business?

We have 23 Big Bazaar stores in the South and in each place the business of nearby retailers has increased rather than come down! The entire area where a Big Bazaar store is located actually grows with it. There is no data point ever of any retailer suffering loss because of our entry. We like to grow along with the society and go with the flow and adhere to the core value of Indian-ness. In Kerala, the initial fears of retailers over our entry have been put to rest and we are not into unfair trade practices.

What is your roadmap for growth in the next one year?

We have signed up properties which are in various stages of development. In the next one year, we expect to have around 32 Big Bazaar stores in operation in the South, up from 23 now. Predominantly, the expansion would take place in Kerala and Andhra Pradesh and entry into places such as Salem, Madurai and Tirunelveli in Tamil Nadu.

Has the entry of organised players in retail business lifted the expectation levels of the public?

The role model for Big Bazaar is Saravana Stores in T. Nagar, Chennai. The roots and learning from Tamil Nadu and Saravana give us a lot of motivation. The hypermarket or organised retail concept is here to stay. India has the largest youth population and there is a boom in sectors such as IT, BPO, telecom and insurance. The salary and aspiration levels are moving up. The retail segment also would improve its convenience factor, value proposition, and so on and the customers would be the ultimate beneficiary.

Will you replicate the same model every where, offering a range of products from grocery to electronics and apparels at all centres?

Big Bazaar offers a wide range of products. Depending on space availability, we would have an entertainment zone. Under our group we have e-zones for electronic goods, furniture bazaars and standalone food bazaars. . We will have different formats depending on customer profile and space.

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