Tata-owned Infiniti Retail Ltd, which owns the Croma electronics retail chain, is planning to run both large and small format stores to cater to a different segment of households. “We started the retail chain for consumer electronics and durables with large format stores of 10,000 sq.ft. each,” said Ritesh Ghosal, chief marketing officer. “By March 2019, we will have 130 stores across the country.”
Besides, Croma also plans to have small format stores of 2000 sq.ft. each in smaller towns, crowded areas and near major metros that have a sizeable segment of the household. It would also enable to penetrate into small cities easily.
“Right now, we have small format stores in New Delhi and in Mumbai. It is in pilot. Currently, it are not hitting the right numbers. We are tweaking it and then we will scale it up. It is like a hub and spoke model. While large format stores will cater to customers within 3-5 km radius, small-format stores will be at arms length,” he said.
Ghosal said the firm’s vision was to have at least 1000 large format stores in five years beginning from FY18. Infiniti Retail plans to add 70 stores during the next fiscal. It entails an investment of over Rs. 300 crores.
“We made a profit of Rs. 16 crore last year. This year, it should be around Rs. 30-35 crore. The profit from five Croma stores will be sufficient to fund one new store. Like that, while 20 stores will be funded through internal resources, rest of the funds will come from banks,” he said.―The Hindu