More Retail is one of the largest networks of Supermarkets and Hypermarkets. The company has just opened its new outlet at Omaxe Connaught Place, Greater Noida. Also present at launch, Mohit Kampani, CEO, Aditya Birla Retail exclusively interacted with Retailer media.
More Retail is acquired by Samara Capital last year. Has Aditya Birla completely exited this business?
Yes, Aditya Birla has completely exit the business. We are the part of Samara Capital group now. The transactions have been just completed yesterday. We are 100% owned by Indian company called Bitzzig. Bitzig is owned by Samara.
What is the rationale behind selecting this location which is not surrounded by any commercial or residential establishments?
Typically, most of the retailers focus on catchment which is within the seven-eight kilometers of the establishment. However, for us there are two reasons to opt this location. First, it is a strategic location connecting nearby towns such as Meerut, Ghaziabad amongst others. Also, the mall has developed some attractions exactly to attract that kind of crowd at weekends.
Hence, we are expecting far wider catchment than normally you would expect within the mall. Also, as per our experience, in any developing catchment, it is always better to enter early. As a company we get advantage in terms of rental, locations. In this case, we are placed on the ground floor which is a very prime location.
What is the category split between food and non food items?
Though we are a grocery focused company, and 60-70% of our sales generate this category only. Since there is no traditional market here home and apparel will be strong category here. This store is expected to generate 40% sales from non food which is apparel and home. Remaining share will be of food.
What would the percentage of private labels?
This store is spread across 25,000 sq.ft area. Almost 40% of the store is our private label in the categories including home, fashion and food.
What are the plans to open new stores?
For next year, our plan is to open around 20 hypermarkets pan India. Among this seven-eight will come up in NCR area.
What kind investment the company is looking to pump in?
Typically, one store requires the investment of 6 to 8 cr. So, overall we are looking about 200-300cr of investment.