HyperCITY retail exits gourmet biz
Big Box retailer HyperCITY Retail has exited the gourmet retailing, Gourmetcity,
citing it as an unviable business. A subsidiary of the Raheja group-led
Shopperâs Stop, HyperCITY had launched the gourment business in 2008 when
it was headed by expat CEO Andrew Levermore.
After the initial jump
in curiosity-led sales, the retailer recorded a marked drop in sales especially
in the recent challenging consumer environment. Industry watchers say, in an
inflationary market, consumer have been very watchful of their spends and shop
more at value and discount formats to cut costs. While most retailers have
announced plans earlier to enter the segment, Future Groupâs Food Bazaar
is one of the few players to do so while Spencerâs has a small presence.
Godrej Groupâs Natureâs Basket has managed to do comparatively well
in few markets.
Gourmet retailing involves high-quality premium food
and retailers are tapping this growing segment owing to rising incomes,
globalization of taste and health and nutrition awareness. Gourmetcity as a live
kitchen offered foods such as specialty cheeses, exotic snacks, pre-packaged
meats, sauces, vegetables and fruit; bakery and confectionary products and
dining accessories sourced from across the world.
The retailer has
re-strategised its business plans to focus on its highly successful hypermarket
format – with four HyperCITY stores in the pipeline in the coming year.
HyperCITY, has successfully completed 4 years of operations in Mumbai and with
its latest foray HyperCITY Hyderabad in July 2009, it has expanded its national
footprint to four stores across India.
B S Nagesh, vice-chairman,
HyperCITY said, âWe have experienced tremendous success with the HyperCITY
format, and have decided to consolidate our Gourmetcity business. Gourmetcity
was a futuristic store concept created as part of our innovation and expansion
plans but the return on investment does not make this business feasible. We are
confident of the continued support from our partners, employees and stakeholders
and belief of what works best in a mutually rewarding
environment.â
The first GourmetCity was launched in Orbit Mall,
Mumbai, but did not attract footfalls that translated into actual sales.
HyperCity had also earlier called off plans to launch convenience formats which
was to be called Express City.
