Grofers, the Gurugram-based online grocery platform, is converting 200 brick-and-mortar stores into its own branded outlets over the next few months. The company’s strategy is aimed towards expanding its business and pushing its private label of products to earn better margins.
So far, the SoftBank-funded company has changed nearly 100 such kirana and supermarket outlets to Grofers discount stores in the Delhi-NCR region. Grofers will manage back-end sourcing, inventory management and technology support on a revenue sharing model in these stores.
Albinder Dhindsa, Co-Founder of Grofers, said, “The move helps in having bigger purchasing power. Also, it will be a subset of our offline delivery system since we already deal with nearly 6,000 partner stores. We started testing this model in November last year and hope to have 200 such stores by expanding the network to Bengaluru in the next few months.”
Yeshu Bansal, Vice-President and Head (Offline Business), Grofers, stated, “We have converted several grocery stores into our own branded offline stores, around 100 kirana stores in Delhi-NCR have been a part of this effort that started somewhere in November last year. Our target is to have 200 such stores in the coming few months.”
“We are entering kirana stores in residential areas that has middle and the lower middle-class population. The goal is to help the retailer scale up his business by getting more footfalls, and for us, it helps push their homegrown brands (private label products) as well,” he added.