IndiaRetailBiz

Organised retailing, though booming is still nascent and evolving in India. Beset with skyrocketing real estate prices and extreme shortage of skilled manpower, not to talk of razor thin margins, it could look at catalogue showroom retailing as a retailing format that can not only be set up fast at low cost but could also be quickly scaled up across the country, including in tier II and tier III cities.

Unlike a self-serve retail store, in a catalogue showroom (store) most of the items are not displayed; customers are asked to view the products from printed or online catalogs in the store and are asked to fill out an order blank. The order is then brought to the sales counter, where an Associate arranges to retrieve the items from the warehouse or if so desired by the customer assures to deliver her the same at ‘Call and Collect’ centre of customer’s choice upon receipt of payment. Thus, catalogue serves to act as an interface between the product and the customer.

Hypercity, the hypermarket format of K Raheja group, which currently operates one hypermarket in Malad suburb of Mumbai, is getting ready to launch HyperCity- Argos (catalogue) on a pilot basis. HyperCity is owned and managed by Shoppers’ Stop– the group’s flagship retailing company.

HyperCity- Argos, is an outcome of the company’s agreement in February, 2007, with the UK-based Home Retail Group Plc., owner of Argos brand. Founded in 1973 by the Green Shield stamp entrepreneur, Richard Tompkins, Argos, over the years, has grown to become one of Britain’s leading general merchandise retailers in the UK and Ireland. It operates a unique format of catalogue stores, along with home shopping and online retail stores.

HyperCity- Argos catalogue is expected to initially offer about 5,000products under different categories. These products tol be sourced from all over the world, will be offered at prices similar to its brick and mortar counterpart.

“It is a ready business for us and we would have distribution centres through which we would be able to reach out quickly to a large number of cities across the country,” said Andrew Levermore, CEO, HyperCity Retail (India), a few months ago, while speaking about the group’s new retailing format.

While, HyperCity Argos will offer products online and showrooms to be called Display Centres (beginning with Thane), it will set up Call and Collect counters in different regions to cater to the needs of customers in that region. The Call and collect centres are likely to occupy 300 sq ft area, while the Display Centres would occupy about 10,000 sq. ft. of space.

“Catalogue retailing does not exist in this country and considering that property acquisition is high, we feel we can expand this business quickly,” added Levermore.