New Delhi: Making its entry into the last mile retail space, Kishore Biyani promoted Future Group on 8 August said it will set up 1,500 new format fairprice shops over the next two years.
The neighbourhood stores to be branded as KB’s Fair Price shops plans to sell leading brands of around 300 essentials, almost 10% cheaper than the market price and the local brands up to 20% less.
“Our target is to provide essential items cheaper than market price and looking at a 20% market share of the neighbourhood retail market,” Pantaloons Foods MD Narendra Baheti told PTI.
One thousand and five hundred new format stores are coming up in two years in top eight markets of the country aiming about 20% share of the retail market in the catchment areas where these shops would be opened, he said.
The company’s initiative is to give competitors like Subhiksha a run for their money. Positioned as no-frills fairprice shops with tag line ‘sare jahan se sasta´, Baheti said adding it would alter few rules of retail scene in India.
Baheti said initially the stores would be owned by the company and in future other business models would also be identified based on the market research and success of the project.
Asked about investments in the new venture, he declined to give a cumulative figure but said cost of setting up one 2,000 square feet store was around Rs280 per square feet as against Rs2,000 per square feet for a modern super market store.
The company plans cluster stores each in Mumbai and Delhi as a part of the pilot project followed by Kolkata, Ahmedabad, Hyderabad, Bangalore, Pune and Chennai.