The Hindu Business Line : Trumart expanding in-store label

Mumbai, Aug. 9 Pyramid Retail group’s supermarket chain Trumart is to aggressively expand its in-store label. “It is more profitable for a supermarket to sell its own private label products, as it requires zero marketing cost and brings greater margins,” Mr Upamanyu Bhattacharya, Chief Executive Officer, Trumart, said.

The store will launch private labels in household cleaners, oil and grocery by the end of this year, following the success of Uttam, the recently launched in-store label in the grocery segment. “We will sell products with a low brand loyalty like sauces, jams, jellies and a range of FMCG items,” he said. “The prices of products under the label will be competitive or lower than that of other brands,” he added.

The supermarket chain is looking to make its presence felt in tier-II cities. It currently has 29 stores in Mumbai, Pune, Jaipur, Nagpur, Ahmedabad and is to enter Madhya Pradesh next month. It has plans to take the number of stores to 90 by the year-end, preferring to set shops in residential and main street areas. The store is present in malls such as Raghuleela in Mumbai, Eternity in Nagpur and Arya Square in Jaipur and is open to entering other malls, depending on the real estate costs. Predominant in western India, the store will enter tier-II cities in South India in the next phase of expansion.

Looking at rentals in the range of Rs 1,500 per sq ft, the real estate cost is the prime cost making the stores enter smaller cities first, where they can get better space and visibility. The average size of Trumart stores is 2,000-3,000 sq ft and currently the company is focussing on 4,000 to 7,000 sq ft of store space.

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