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Purvita Chatterjee

Mumbai, Sept. 8 Videocon Industries-promoted Next Retail is toying with the idea of setting up smaller format stores under two brands — Next Express and Next Digital.

Measuring less than 2,000 sq ft, these outlets are expected to stock select categories of consumer durables and will be devoid of frills and accessories generally associated with the retailer’s large format standalone stores.

According to Mr K.S. Raman, Director, Next Retail, “These smaller format stores will come up next year in areas where there is potential. Next Express would have restricted product categories while Next Digital will stock only IT related products.”

Currently in a consolidation phase, Next Retail has been shutting down outlets and at the same time opening new ones.

“We shut down nearly 20 outlets and there has been no expansion in the five months. But in the next three months we would be adding another 120 stores,” said Mr Raman.

However, next year, the retailer would start launching its smaller format stores under Next Express and Next Digital which would be run through both company-owned and franchise operations. With the purpose of reaching out to class B & C towns, Next Retail expects to strengthen its operations in States in the North-East and in Tamil Nadu. It has invested Rs 120 crore in expanding its stores into the interiors of the country and its future stores are likely to be planned in these States. As Mr Raman says, “We want to consolidate our presence in the interiors of the country and States in the North East is where we are looking at expanding our presence.”

Along with the Planet M outlets now under its fold, Next Retail would be trying out the shop in format by bringing in some of the Planet M stores within its Next standalone formats.

“Our first pilot store with Planet M would be in Vashi. Planet M would bring in new categories such as mobiles, music and gaming products. Its format would be included within our Next Retail store,” added Mr Raman.

Currently, Planet M has 250 stores and has positioned itself as ‘Fun’ retailer including lifestyle categories such as sun glasses in its portfolio. Mr Subir Ghosh, Managing Director, Planet M, said, “We have repositioned ourselves as being `Fun’ retailer and have appointed ad agency TBWA to work on our brand.”

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