The Future Group CEO, Rakesh Biyani declared that the company would invest Rs 600 crore over 18 months to open around 60-odd Big Bazaar stores, during the launch of 70,000-sq. ft. family store at Express Avenue in Chennai. The floor space of the proposed stores is estimated to be between 40,000 sq.ft and 60,000 sq. ft.
“Funding for the expansion will be done mostly through internal accruals. The retail group will continue to grow at 30-35 per cent,” he said.
With the introduction of new technology systems, the company has managed successfully to reduce the checkout time by about 150 per cent on the cash out time. Since the technology has proved successful in 40-odd stores the company is planning to install the system in other 132 stores also.
Biyani also spoke on the completion of the merger of the subsidiary company, Home Solutions Retail India Ltd (HSRIL) that administers the consumer retail electronics chain stores, e-zone.
“As shareholders have given their nod to the merger of HSRIL with Pantaloon retail, the merger processes will be completed at the earliest. The consolidation is to integrate the supply chain and the back-end process. The home business segment has grown slowly in the last 12 to 14 months. To ride the rebound, we plan to open 73 e-zone stores, starting initially with 21 stores and add 12 to 15 stores in the successive phases of expansion.”
Chennai is one of the fastest growing cities in the country and to cater to the exploding needs of the people, shopping solutions under one shed would offer expected results for the retail stores.
In the present scenario, South India has around 33 stores in its basket with major cities like Bangalore, Chennai and Hyderabad having alone 10, 4 and6 stores respectively.