Future looks to double share of consumer basket; eyes 6 to 9 pc revenue growth with omni-channel push

Retail major Future Group is embarking on an omni-channel push to double its share of the consumer basket from the current 20 to 30 per cent, to 60 per cent. The retailer announced a tie up with SAP company Hybris for the same, and is eyeing a 6 to 9 per cent growth in revenue over two years with this omni-channel strategy.

 

Rakesh Biyani, joint MD, Future Retail, said, "We’re only able to cater to 20 to 30 per cent of what the consumer really consumes, today. We’d like to be responsible for 60 per cent of that basket. We’re hoping to at least cater to 10 percent of our common customer base which would chalk out to a phenomenal number to be serviced." 

 

For the end-consumer, it will mean online shopping and home delivery across the Group’s retail brands by March 2015, beginning end-September with eZone. They could also order online (block the inventory) and pick up the products at the stores. Products not available in stores could be ordered in-store, for home delivery.

 

An ‘Endless eye’ feature across brands will see the retailer extending the range of products to include those not part of the stores’ physical SKUs.

 

Rakesh explained, “On an average we sell about 40,000 SKUs in a store (Big Bazaar) but the range on offer across 180-odd Big Bazaars would go across to more 2,50,000 SKUs over the next one year.”  

 

The overall investment would be ‘Rs 100-odd crores over a period of 18 months’.

 

On the communication, Kishore Biyani, group CEO, said, “Future Group as a company, is looking at how in the next 60 to 80 days we can call ourselves as a company which is positioned along the lines of connected commerce and we believe in our statement of ‘Udna hai aaj abhi’ with us turning into a data-led company. The business is completely going to be about connected commerce for which we will be launching a campaign soon.”

 

One of the features that the tie-up will bring to Future Group is the on-ground data assistance at the shop floor. Using Google Glass, technology assistance from Hybris and importing information from the company’s loyalty database, the shop-floor assistants at any of the Group’s outlets will be able to view a consumer’s ‘wishlist’ as he or she walks into the store.

 

Besides hypermarket chain Big Bazaar, Future Group owns retail brands Foodhall, Central, Brand Factory, Planet Sports, Home Town, eZone and KB’s Fairprice.