Companies

Trent set to launch third hypermarket format

Alka Kshirsagar Pune | Updated on November 23, 2017 Published on October 20, 2013

Trent’s first Star Daily outlet launched at Pimple Saudagar, a Pune suburb. — Alka Kshirsagar

New store will have floor area of 25,000 sq ft

British retailer Tesco looks set for a firmer grip on the Indian market with Trent, its Indian partner with which it has a wholesale supply agreement. The duo is planning a third format under the hypermarkets segment.

According to a person close to the development, the Trent subsidiary that operates the Star Bazaar hypermarkets and has just launched the first Star Daily, a new convenience store format along the lines of Tesco Express, will also launch the third format.

“The company has firmed up plans for the new format and is scouting for locations in the city,” said the source, adding that Trent also plans to expand the number of Star Daily stores in the city.

The new store will typically have a floor area of around 25,000 sq ft against Star Bazaar’s 50,000-80,000 sq ft and Star Daily’s 1,800 sq ft. The first outlet is expected to become operational in six to eight months.

Trent Hypermarket Ltd has inked a franchise and a wholesale supply arrangement with Tesco Plc and its wholly-owned Indian subsidiary, Tesco Hindustan Wholesaling Pvt Ltd. The agreement allows Star Bazaar access to Tesco’s retail expertise and technical capability including best practices in functions like marketing, stock management, retail information systems and supply-chain infrastructure.

Star Bazaar also sources a significant share of merchandise from Tesco’s wholesale cash-and-carry business in India.

First Star Daily

To locate its first Star Daily, Trent has chosen Pimple Saudagar, a fast-developing Pune suburb that was a rather obscure location as recently as five years ago.

“The area is not mature enough to take on a full-fledged mall, and is ideal to test fire the new format,” said Mayank Sharan, Associate Director, Retail Services, Jones Lang LaSalle.

Sumeet Bhatia, who heads Cushman & Wakefield in Pune, added that Pimple Saudagar, with its IT-centric and young residents, provides the perfect catchment for such a retail venture.

A visit to the store reveals that there is little on the shelves to reinforce the British connection save a range of Serbuk Pencuci detergents and Bijirin Sarapan Berperisa Coklat (chocolate flavoured cereal), both sourced by Tesco from Malaysia.

But the tills in the store are ringing. The focus is clearly on groceries, personal and home care products, with farm produce from pak choi to potatoes and a selection of dressed fish and meats.

For a company that has been cautious on expansion over the past couple of years, this could mean more action.

Published on October 20, 2013
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