SUCCESS OF PANTALOONS RETAIL

INDIA LIMITED
INDIAN WAL-MART

SUBMITTED TO:

SUBMITTED BY
JAGJOT SINGH
ENROLLMENT NO.

ABSTRACT
The thesis is focused on finding out the concept of value retailing followed by the
Pantaloons Retail India Limited in India and to do an empirical study and analysis on one
of its business lines The Food Bazaar. The aim was also to find out that how the
concept of private labeling has proved to be beneficial for the growth of the organization.
The research was conducted to find out the ways and methods that the company has been
following in the business of organized retailing including the hypermarket concept. The
research was conducted in NCR region (Noida & Gurgaon) with the sample size of
around 300 customers and primary information was collected from them in the form of
questionnaire. Also the financial statements of past four years were analyzed to find out
the financial performance of the company. After doing the brief analysis about each of the
verticals of the Pantaloons Retail India Limited, an in-depth research was conducted on
its food bazaar business line in order to find out that from where the modern consumer
prefers to shop from and what ratio of his income is he willing to spend on various food
items. The objective was to figure out that what are the various parameters that a shopper
takes into account before he buys a particular item and how comfortable is he when he is
buying from malls rather than the from the local kirana shops. The study was also done
on consumers perception on the concept of brand + bargain and the analysis about the
same has been mentioned at the end.

ii

Thesis Synopsis
1) Title of the proposed thesis: success of Pantaloons retail India limited-the
Indian wal-mart.

2) Objective of the thesis:

To understand the concept of value retailing followed by pantaloons retail
India limited in India.

To understand the concept of lifestyle retailing by the company.

To understand the management of the company, its expansion plans, growth
strategies, challenges and competitive strength and a complete analysis of its
business model.

To understand the concept of hypermarket and power of private labels by

the company.

To do the empirical study on food bazaars

3) Research design :
Research Descriptive
Data source Primary Data
Research Approach Survey Method
Research Instrument Questionnaire
Questionnaire type Structured non-disguised
Type of questions Both Close-ended & Open-ended
Sampling Unit Individual
iii

 Sampling Frame NCR

Sampling Procedure Simple Random sampling to select 5 stores and
convenience for select customer/shoppers.
Sample size 300 customers approx

4) Scope of the thesis :the scope of the thesis is as follows: Complete information about Indian retail industry
The company background- pantaloon retail India
In-depth analysis about Brand + Bargain shopping
Empirical study on food bazaar o consumer perception research methodologies
Analysis
Suggestions and recommendations
conclusion

iv

ACKNOWLEDGEMENTS
I would like to extend my heartfelt gratitude to all those who have contributed towards the
successful completion of my thesis. Foremost among them is Mr. Bharat Khera for his
helpful and generously extended support and by sparing his valuable time to guide and
suggest us towards completion of this project.
I do owe a deep sense of gratitude to all the members of Pantaloons Retail India and
all those who stood with me and for their continuous support and co-operation during the
thesis. They too have contributed in no mean amount towards the success of my endeavors. I
also thank the Director and the faculty of my institute for giving me an opportunity to do the
thesis.

Table of Contents
Page No.
Abstract
Synopsis
Acknowledgements
1. Indian Retail Industry
1.1 Some Key Facts
1.2 International retailers
1.3 Retail Omnibus
2. Company background
2.1 Major Milestones
2.2 Management of the Company
2.3 Expansion Plans
2.4 Challenges
3. Pantaloon Competitive Strengths
4. Pantaloon strategy
5. Characteristics of Select Retail Formats
6. Business Analysis of Pantaloon Model
7. Major verticals
7.1 Pantaloons
7.2 Big Bazaar
7.3 Food Bazaar
7.4 Fashion Station
8. Brand factory
8.1GINI & JONY FREE WORLD
8.2 BLUE SKY
9. Data Analysis
9.1 Big Bazaar Revenue Mix
9.2 Pantaloon Revenue Mix
9.3 Value Revenue Mix
9.4 Lifestyle Revenue Mix
9.5 Revenue Mix
9.6 Retail Space Mix
9.7 Performance of various formats on 31.12.2006
9.8 Pillars Going Forward For 2010
10. Bottlenecks and Challenges with Indian Retailers
11. Performance of Pantaloon Retail
11.1 Point of sale
11.2 Sourcing of merchandise
11.3 Selling of Merchandise
11.4 Higher Inventory turns
12. Key risks
13. The power of private labels by Pantaloons

vi

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14. Detailed Financials

14.1 Income Statement
14.2 Balance Sheet
15. TABLES
15.1 Table No.1
15.2 Table No.2
15.3Table No.3
16. Empirical Studies on Food Bazar
16.1 Research methodology
17. Analysis
17.1Choice of retail store for grocery shopping
17.2 Expenditure on various food items
18. List of references
19. Appendice
19.1Questionnaire

vii

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SUCCESS OF PANTALOONS RETAIL INDIA LIMITED

INDIAN WAL-MART

1. Indian Retail Industry: Strategies, Trends and Opportunities

2007
Retail is Indias largest industry, accounting for over 10 per cent of the countrys GDP
and around eight per cent of the employment. Retail industry in India is at the crossroads.
It has emerged as one of the most dynamic and fast paced industries with several players
entering the market. But because of the heavy initial investments required, break even is
difficult to achieve and many of these players have not tasted success so far. However,
the future is promising; the market is growing, government policies are becoming more
favorable and emerging technologies are facilitating operations.
Retailing in India is gradually inching its way toward becoming the next boom industry.
The whole concept of shopping has altered in terms of format and consumer buying
behavior, ushering in a revolution in shopping in India. Modern retail has entered
India as seen in sprawling shopping centers, multi-storeyed malls and huge
complexes offer shopping, entertainment and food all under one roof. The Indian
retailing sector is at an inflexion point where the growth of organized retailing and
growth in the consumption by the Indian population is going to take a higher growth
trajectory. The Indian population is witnessing a significant change in its
demographics. A large young working population with median age of 24 years,
nuclear families in urban areas, along with increasing workingwomen population and
emerging opportunities in the services sector are going to be the key growth drivers
of the organized retail sector in India.

1.1 Some Key Facts

-

Retail is Indias largest industry, accounting for over 10 per cent of the countrys
GDP and around eight per cent of the employment.

The market size of Indian retail industry is about US $312 billion

Organized retailing comprises only 4.5 per cent of the total retailing market and is
estimated at around US$ 8.7 billion

The organized retail sector is expected to grow to US $ 70 billion by 2010

1.2 International retailers

India's vast middle class with its expanding purchasing power and its almost untapped
retail industry are key attractions for global retail giants wanting to enter newer markets.

The Australian government's National Food Industry Strategy and Astride

initiated a test marketing food retail in India wherein 12 major Australian food
producers have tied up with India-based distributor AB Mauri to sell their
products directly at retail outlets.

US-based home delivery and logistics company, Specialized Transportation Inc,

will enter the Indian market through a strategic alliance with Patel Retail, a
subsidiary of Patel Integrated Logistics.

Wal-Mart has announced its plans for India in partnership with Bharti,

US coffee chain Starbucks is well on its way to set up its first store in India this
year.

US based Tommy Hilfiger has tied up with Creative Portico, a Mumbai based
home textiles company, to sell its home textiles and furnishings in India.

Alfred Dunhill, a UK-based luxury mens brand, has tied up with Brand house
Retail Ltd. for its India venture and will be opening four stores in the country.

The worlds largest furniture retailer, Ikea, has established an office in Gurgaon
for market research and is holding talks with domestic companies to open stores
in India.

3
Some of the international players that have already entered India include McDonald's,
Pizza Hut, Dominos, Levis, Lee, Nike, Adidas, TGIF, Benetton, Swarovski, Sony, Sharp,
Kodak, and Medicine Shoppe among others.

1.3 Retail Omnibus: Four Reports on the Retail Scene in India

The Omnibus edition of Pantaloon retail papers spans this very happening sector, which
not only brings so much joy to the inveterate shoppers in terms of retail therapy, but also
employment and livelihood to tens of thousands of Indians.
Indias GDP growth rate is a healthy 9% for 2005-06 and this has had its ripple effect
on all industries more so the Retail sector, of which only 3% organized until now.

The Indian retail industry accounts for 10% of GDP and 8% of employment.

India is being touted as the next big retail destination with an average three year
compounded annual growth rate of 46.64%.

The Indian economy is poised to take the third position in the world in terms of
Purchasing Power Parity by the year 2010.

The Indian Retail Market is a Rs. 1,200,000 million market as per the Images
India Retail Report 2007.

Organized Retail market is zooming ahead with an annual growth rate of 30%.

The Retail sector is vibrant with growth happening in all related areas be they malls,
hypermarkets or single brand luxury stores, they have dotted the commercial landscape of
the metros, and have even percolated to the Tier II and Tier III cities.
Malls are fast becoming sought-after entertainment hotspots. From a situation where
there were no malls about a decade ago, the country will have over 300 malls translating
to over 100 million sq.ft. in available mall space by the end of 2007.

4
Food and Grocery retail holds the most potential, as almost 99% of it is unorganized. A
number of big players are entering the field of organized food retail like Reliance, Aditya
Birla Group and the Bharti Group, which has tied up with the worlds largest retailer
Wal-Mart. All these major players are expected to show an annual growth rate of 25
30%.
The Retail boom has also led to the opening of a large number of single brand outlets
across the country. With big brands and bigger outlets across all segments, from Apparel
and Footwear, Watches, Books and Stationary to Jewelry and Consumer Durables, the
sweep is indeed broad.
The Retail Sector is definitely witnessing a growth phase and everyone wants to make
their presence felt in order to take their share of this huge pie. Take a gourmet trip dig
in to sample the depth and breadth of this amazing sector.
Types of Retail verticals operating in India

Food and Beverage

Health and Beauty

Clothing and Footwear

Home Furniture and Household Goods

Consumer Durable Goods

Leisure and Personal Goods

2. Company Background Pantaloon Retail India

Founded in 1987, by Mr. Kishore Biyani, Pantaloon Retail in Indias leading Retail
Company. It is the flagship company of the future group. Starting its 1 st outlet in 1997,
Pantaloons in Kolkata, it currently has over 4 mm sq. ft. of area under business. The
company operates under multiple formats hypermarket, apparel stores, specialty stores
under various brands including Big Bazaar, Pantaloon, Food Bazaar, Collection, E Zone,
etc. The company also operates an online portal, futurebazaar.com.
Pantaloon Retail (India) Limited is today recognized as one of the pioneers in the
business of organized retailing in the country with a turnover of over Rs.2,884.43
millions for fiscal 2006, as opposed to a turnover of Rs.1,463.12 million for fiscal 2005
and Rs.881.04 million for fiscal 2004. During the same period Pantaloon profit after tax
was Rs.124.75 million, Rs.30.20 million and Rs.3.82 million, respectively. As a result,
Pantaloon sales increased between fiscal 2004 and fiscal 2006 at a CAGR of 80.94% and
Pantaloon profit after tax increased between fiscal 2004 and fiscal 2006 at a CAGR of
471.44%.
Pantaloon Retail is one of the leading retail houses in India. As of November 15, 2006,
Group/Company operated 46 retail stores, including three stores which are operated by
Pantaloon franchises. These 46 stores are spread over about 1,113,000 square feet and are
located in 17 states across India. In efforts to strengthen Pantaloon supply chain,
Group/Company has set up seven regional distribution centers and an apparel
manufacturing plant.
The company is headquartered in Mumbai with zonal offices at Kolkata, Bangalore, and
Gurgaon (Delhi). It has 4 kinds of stores; Pantaloon stores, Central Malls, ALL Stores,
Fashion Stations and Mela Store. In the Value segment, Group/Company cater to the
masses through Pantaloon Big Bazaar, Food Bazaar outlets and Gold Bazaar Stores with
over 6.5 lakh sq. ft. retail space across Kolkata, Mumbai, Thane, Pune, Hyderabad,
Bangalore, Nagpur, Ahmedabad, Kanpur, Chennai and Gurgaon (Delhi).

6
Subsequently, with evolution of retail industry in India and change in consumer
aspirations, Group/Company diversified Pantaloon portfolio of offerings to include other
retail goods. Currently, Group/Company sell readymade apparels and a wide range of
household merchandise and other consumer goods such as footwear, toys, watches,
toiletries, grocery items, sports items, crockery, gift and novelties.
It began its retailing operations in India way back in 1987. Currently, it manufactures and
sells ready-made garments through its own retail outlets and two discounting stores.
Group follows the concept of value retail in India. In other words, Pantaloon business
approach is to sell quality goods at reasonable prices by either manufacturing ourselves
or directly procuring from manufacturers (primarily from small and medium size vendors
and manufacturer). Group/Company endeavor to facilitate one-stop-shop convenience for
Pantaloon customers and to cater to the needs of the entire family. Group/Company
believes this concept as helped us grow to Pantaloon current size within a short time
frame of four years.

2.1 Major Milestones

1987: Company incorporated as Manz Wear Private Limited. Launch of Pantaloons
trouser, Indias first formal trouser brand.
1991: Launch of BARE, the Indian jeans brand.
1992: Initial public offer (IPO) was made in the month of May.
1994: The Pantaloon Shoppe exclusive menswear store in franchisee format launched
across the nation. The company starts the distribution of branded garments through multibrand retail outlets across the nation.
1995: John Miller Formal shirt brand launched.
1997: Pantaloons Indias family store launched in Kolkata.
2001: Big Bazaar, Is se sasta aur accha kahi nahin - Indias first hypermarket chain
launched.
2002: Food Bazaar, the supermarket chain is launched.

7
2004: Central Shop, Eat, Celebrate In The Heart Of Our City - Indias first seamless
mall is launched in Bangalore.
2005: Fashion Station - the popular fashion chain is launched
ALL a little larger - exclusive stores for plus-size individuals is launched
2006: Future Capital Holdings, the companys financial arm launches real estate funds
Kshitij and Horizon and private equity fund Indivision. Plans forays into insurance and
consumer credit.
In order to reduce costs and take advantage of economies of scale Company have
embarked on backward integration of Pantaloon products.
The company plans to diversify into the business of discounting in a big way, which is
targeted at the growing middle class segment. It has Indias second largest retail chain
with 46 retail outlets and two discounting stores branded as Big Bazaars across the
country at an estimated retail space of 4,01,300 sq. ft. The company plans to double its
retail space in the next couple of years.
Pantaloon has come up with an excellent revenue model, focusing on value for money
segment. Pantaloon plans to target the upper middle and the middle class segment, which
forms the large chunk of Indian population. This segment is very price conscious and
always looks out for value for money. Pantaloon has already opened two discount stores
at Hyderabad and Calcutta. It also plans to sell household items through its discount
stores along with apparels. Since the company has got strong brands like John Miller and
Pantaloon, coupling it with the discount store model would boost the sales to the larger
population.

Pantaloon successfully launched its discount store chain (branded as Big Bazaar), which
targets the large and growing upper-middle and middle class of Indian society. This is
totally in contrast to the other organized retail players, which focus on high net-worth of
individuals. Pantaloon has the second largest selling space amongst the retailers. Big

8
Bazaar offers products and services such as a chemist, a photography shop, a bakery,
financial products, automobile accessories, bicycles, and electrical hardware among other
items the range is vast and fulfils practically every need of the consumer under one
roof. This is backed by complete automation of the retail outlets. After completion of the
central hub at Mumbai the companys operations would be fully integrated which would
give its operating efficiency a boost?
Big Bazaar has strong own brand names in its portfolio across product categories. The
brands include Pantaloon, John Miller, and Bare. Higher percentage of own brand sales
improves margins, thus reducing the break-even level of sales.

Big Bazaar has

diversified from apparels to household items in its discount stores. This has enabled them
to enlarge their basket of offerings.
Pantaloon Retail is one of Indias major retailers with presence in following two
segments:
Lifestyle Retailing Pantaloons, Central, Fashion Station, aLL, MeLa
Value Retailing Big Bazaar, Food Bazaar.

9
Pantaloon Retail operations can be summarized in this following diagram

Pantaloon
Retail (India)
Ltd.

Value

Lifestyle
Retailing

Pantaloons

Central

Entertainment,
Leisure and
sports

Retailing

Fashion
Station

aLL

Big
Bazaar

MeLa

Food
Bazaar

10

2.2 Management of the Company

Pantaloon Retail over a period of time has built a strong management team to drive the
company for its high growth phase. Though, Mr. Kishore Biyani is the face of Pantaloon,
the company is not a one man show and has built a strong second and third line of
management, to fulfill its massive expansion and growth plans. Though there have been
concerns regarding lack of talent in the growing retail sector, the company has the best
talent in place to drive each business category.

2.3 Expansion Plans

The concept of discount store resembles the Wal-Mart strategy. In India and especially in
metro cities like Mumbai, Bangalore, Calcutta and Hyderabad, where the population is
dense and consists of a high middle-class population, the concept of discount stores is
graining a lot of acceptance. The company plans to expand rapidly. The next year it plans
to open more stores in Mumbai and Delhi at critical locations.
It has planned to open three Big Bazaars (discount stores) in A-class cities like
Bangalore. Pantaloon has already bagged substantial retail space in Hyderabad (60,000
sq. ft.), Kolkata (35,000 sq. ft.) and Bangalore (40,000 sq. ft.). In Mumbai it acquired
50,000 sq. ft. area at each of its locations at Lower Parel, Mulund and the western
suburbs.

2.4 Challenges
The key challenges facing the company are as follows:

Fund raising The Company acknowledges that expansion plans of the company
cannot be met from internal resources. This means that the company has to tap
external sources to fund expansion. The company has recently allotted shares to
promoters at SEBI formula price. It plans to borrow heavily to fund its expansion

11
plans. As a consequence of increased interest payment and depreciation expense,
the net profit margins would remain flat.

Competition Although there are a few stores operating in this segment such as
Giant in Hyderabad, it is mostly international chains such as Wal-Mart and
Carrefour that are the better known names as discount stores worldwide.
Meanwhile, the general retailers in Mumbai are not too pleased about the concept
of discount stores. Group/Company cant figure out from where such stores get
their margins. It must have a feasible revenue model to sustain the venture.
The company is facing limited competition from the organized retailers but strong
competition exists from the downtown centers unorganized.

12

3. Pantaloon Competitive Strengths

It is believed that the following are Pantaloon principal competitive strengths which have
contributed to Pantaloon current position in the retail sector in India:
1.

Strong understanding of the value retail segment: Pantaloon business

plan involves implementation of the concept of the value retailing, targeting the
middle and lower middle income groups, which constitute majority of the
population in India. Group/Company intends to provide quality products at
competitive prices. Group/Company sells a vast range of merchandise across
apparels and accessories, FMCG products, food products and consumer durables
with over 63,000 SKUs. Pantaloon emphasis has been to maximize the value that
the customers derive in spending on goods bought in Pantaloon stores.
Group/Company endeavor to continuously reduce Pantaloon costs through a
variety of measures, such as, in-house production of apparels, procurement of
goods directly from the small and medium size vendors and manufacturers,
efficient logistics and distribution systems along with customized product mix at
Pantaloon stores depending on the regional customer behavior and preferences.
Central to Pantaloon value retail strategy is to pass on the benefits of cot reduction
measures to Pantaloon customers.

2.

Strong and efficient supply chain management: Pantaloon supply chain

management involves planning, merchandizing sourcing, standardization, vendor
management, production, logistics, quality control, pilferage control replacement
and replenishment. Pantaloon supply chain management provides us flexibility to
adapt to changing patterns in consumer behavior and Pantaloon ability to add
value at various steps/levels. In particular, Pantaloon supply chain management
gains strength from Pantaloon ability to undertake in-house manufacture, design
and development of apparels.

13
3.

Strong and efficient logistics and distribution network: Pantaloon

distribution and logistics network comprises seven distribution centers. Besides,
Group/Company have Pantaloon own fleet of 31 trucks, which helps us to
transport and deliver Pantaloon products in a cost and time efficient manner.
Group/Company believe that Pantaloon distribution and logistics set up is well
networked and allows us to fulfill the store requisition within short time period of
generation and receipt of order, which has helped us to optimize in-store
availability of merchandise and minimize transportation costs. Pantaloon strong
distribution and logistics network has enabled us to dispense with the requirement
of a dedicated storage space at every store, which is an industry practice, and
instead undertake periodical replenishment of depleted stock. Due to adoption of
an efficient racking system, Group/Company are able to benefit from optimum
utilization of the space allocated for display in Pantaloon stores. This provides us
assistance in maintaining a low working capital requirement and less carrying
cost.

4.

Group/Company is in a position to leverage Pantaloon geographical

spread: Pantaloon stores and distribution centers are spread in various parts and
regions of the country. This has not only enabled us to build Pantaloon brand
value but also facilitated us to explore cost-effective sourcing from different
locations, identify potential markets and efficiently establish new stores in
different locations. An aggregate of 40 of 46 of Pantaloon existing stores are
located in Tier II and Tier III cities, which, Group/Company believe, enables us to
capture market share in locations where a majority of Pantaloon target customers
are located.

5.

Group/Company possess the ability to identify new locations to promote

Pantaloon business plans: Group/Company believe that Group/Company
possess the ability to identify locations with potential for growth, in particular in
Tier II and Tier III cities. Group/Company have an exclusive site identification
and assessment team, which undertakes systematic analysis of the business

14
prospects, taking into account factors such as population, literacy levels, nature of
occupation, income levels, accessibility, basic infrastructure and establishment
and running costs. Further Group/Company have a dedicated warehouse for the
purposes of storing the materials essential for setting up of new stores.
6.

Group/Company derive substantial revenues from Pantaloon private

labels: Group/Company have a number of private labels for apparels (i.e. apparels
manufactured by us) such as Zeppin, Paranoia, Chlorine, Kittaan Studio,
Famenne, Fleurier Women and Roseau. In fiscal 2006, Pantaloon income from
Pantaloon private labels was Rs.483.50 million, which accounts for 16.76% of
Pantaloon total sales for fiscal 2006. Group/Company believe that Pantaloon
focus on Pantaloon private labels and their recognition in Pantaloon customer
segment enables us to differentiate ourselves from Pantaloon competitors.

7.

Group/Company

effectively

use

information

technology

systems:

Group/Company believe that efficient information technology systems, processes

and business applications are essential to handle retail chain of Pantaloon
magnitude.

Pantaloon office processes are computerized which support

procurement, supply chain logistics, distribution centers management and store

operations including inventory management and billing. Group/Company is in
the process of implementing SAP. All Pantaloon stores and distribution centers
are connected through a company-wide virtual network connection which helps to
efficiently manage Pantaloon network of outlets throughout the country.
8.

Group/Company have a highly experienced and competent management

team: Group/Company have an experienced management team which is
complemented by a committed workforce. Pantaloon management team
comprises of talented professionals who are highly experience in the retail sector.
This has assisted us in effective management of Pantaloon stores.
Group/Company believe Group/Company have created the right balance of
performance bonuses and other incentives for Pantaloon employees.

15

4. Pantaloon strategy:
Group/Company intends to pursue the following strategies in order to consolidate
Pantaloon position as one of the leading operators in the value retail segment in India.
Pantaloon growth strategy is based on:
1

Increasing Pantaloon penetration in the country by leveraging Pantaloon

supply chain, distribution and logistics network.

Emphasis on backward integration.

Expansion of FMCG.

Procurement from low-cost production centers outside India.

Increasing customer satisfaction and Pantaloon base of loyal customers.

Continue to upgrade information technology systems and processes.

Continue to train employees and seek entrepreneurship from employees.

16

5. Characteristics of Select Retail Formats

Format

Description

Size

(Sq. ft.)

Examples

(India)
Category

Offer a narrow

Specialist

variety with a

Home Depot,

Killer

very deep

Nallis Kumaran

assortment of the

(Chennai),

merchandise.

Toykemp

Merchandise may

(Bangalore), The

be sold at price

Loft (Mumbai,

lower than that.

Vijay Sales

Convenience

Usually located

50,000+

3,00-8,000

15,000+

500-1,000

near residential

Circuit City, RUs,

(Mumbai)
7-Eleven, Speed
mart, In & Out

areas & open long

hours. Offers an
assorted mix of
products
including milk,
Department

break and eggs.

Large store

Store

selling several

Harrods,

product lines,

Selfridges, Macys

with each

Bloomingdales,

operating as a

Shoppers Stop,

department.

Pantaloons,

Product mix is

Globus, Ebony

largely non-food,
like apparel,
accessories,

75,000+

500,1-000

Marks & Spencer,

17
books, music,
footwear etc.
level of service is
Factory

very high.
Stores which sell

Outlets

branded

Outlet, Reebok

merchandise at

Factory Outlet,

discount. Levels

Wrangler Factory

of service are low,

Outlet.

5,000-10,000

5,000-1,000

Levis Factory

typically, these
are franchise
outlets located
away from the
Hypermarket

main markets.
Large self service

80,000-220,000

stores selling a

40,000-

Wal-Mart, Big

75,000

Bazaar, Giant,

mix of products,

Sabka Bazaar

these stores offer

large depth in the
product mix
which includes
Food non-food
items like apparel,
CDs, DVDs
footwear, etc.
The low price for
the products is a
key attraction for
Single Price

the customer.
Offer an assorted

Stores

mix of branded

Dollar General, 9

and unbranded

to 9, 49 to 999

5,000-20,000

500+

Family Dollar,

18
merchandise, to
appeal to the
budget conscious
Specialty

customer.
Focus on brand or

Stores

a particular

Crossword, Planet

category. They

M, Rhythm House,

offer a narrow

Music world

5,000-8,000

2,000-5,000

Walgreens, Boots,

product line but

good depth, level
Supermarket

of service is high.
These stores offer

8,000-20,000

800-5,000

Asada, Kroger,

food, laundry and

Tesco, Foodworld,

household

Food land, Food

maintenance

Bazaar, Nilgiris.

products. They
are self service,
low cost, low
margin and high
volume operators.

19

6. Business Analysis of Pantaloon Model

As Group know &, India is not an integrated homogenous market like other western
markets its a hierarchy of markets catering to people at many different income levels 7
tastes. Hence its very important to understand the customer and its needs. Pantaloon has
been able to crack this by offering all what the consumers want at different price points.
Pantaloon has created a well niche brand for itself. The company through constant roll
out of different formats is trying to capture the maximum of consumers wallet. It has
been able to target 75% of the consumer wallet.
Business Strategy

Targeting the market segment & the product

Understanding the market requirements

Arranging the sourcing and the logistics

Final point of sale through different formats

Strategy to touch all price points to diversify business & improve profitability.

20
Categories / Formats
Where the consumer spends
Clothing, Tables & Fashion

Retail formats where the consumer

can spend.
Big Bazaar Central Fashion
Station Gini and Jony Pantaloon

Jewelry, Watches & Accessories

Footwear
Health & Beauty Care Services

All Planet Retail

Blue Sky
Footwear Bazaar
Health Village Star and Sitara

Health & Beauty Care Products

Consumer Durables
Mobile Handsets
Furniture & Fixtures

Tulsi
Turmeric
Electronic Bazaar E-zone
M Bazaar M port
Collection I Furniture Bazaar Got

Food & Grocery

Catering Service (F&B)

it Home Town
Food Bazaar
Brew Bar Caf Bollywood

Books, Music & Gifts

Entertainment

Chamasa Rain Sports Bar.

Depot
Bowling Co-FIZ3

21
PANTALOON RETAIL No of Stores & Retail Space

Retail Space sq. ft. in mn

Retail Space
4

3.8

2.77

1.95

1
0.32

2002

0.58

2003

0.99

2004

2005

2006

2007

To add 27mn sq.

ft. of retail space
by 2011

No. of Stores

No. of Stores
200
150
100
50
0
2002 2003 2004 2005 2006 2007

Targeting higher consumer wallet share

22
Recreation & Entertainm ent
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%

Com m unications
Modical & Health Care Services

2002

2004

2007

Furniture, Furnishing, &

Appliances
Food, Beverages & General
Merchandise
Clothing & Footw ear

23

7. MAJOR VERTICALS
7.1 Pantaloons
Pantaloons lifestyle format of retailing is the apparel store of the company catering to the
ever-changing fashion needs of the customers. Pantaloons cater to the Middle Income &
Upper Middle Income consumers. Pantaloon has been the pioneer & only apparel retailer
to offer several (7) fashion seasons of new & contemporary fashion. The company has
roped in Bollywood stars to promote its apparel offerings.
Pantaloon currently is the largest apparel retailer in India. The format is rapidly
expanding which itself would create entry barriers for competition. Its been a high
margin business.

42 stores by 2007 end & 80 by 2010 1.1mn sq. ft. by 2007 end &
2.0mn sq. ft by 2010 Average Sales per sq. ft. of Rs 7,500 can
generate sales of Rs 1,500 crore by 2010
Expected Gross margin 45%
Expected EBIDTA 14-16%

Competition in this format is expected to be limited because of the brand image that
Pantaloon has created in the minds of the consumer. Pantaloon has also adopted a private
label strategy, which allows it to differentiate in products & generate higher margins.
Private labels constitute 75% of the apparel sales.

24

7.2 Big Bazaar

Shop till you drop! Big Bazaar has democratized shopping in India & is so much more
than a hypermarket. There are over 170,000 products under 1 roof that caters to every
need of a family, making Big Bazaar Indias favorite shopping destination.
Awards & Recognition
In the month of July 2006 Big Bazaar won the prestigious CNBC TV18 Awaaz
Consumers Award 2006 in the retail category, as the most preferred, large, food
& grocery store.
At Images Retail Awards it was adjudges the Best Value Retail Store & Best Retail
Destination of year 2006
In Readers Digest Consumer Survey 2006, Bazaar won the prestigious Platinum Trusted
Brand Award in the Indian services category
Fashion Focus
Big Bazaar continues to be a fashion led delivery format, with fashion comprising
about 40% of its revenues.
Big Bazaar Getting Bigger
New categories like consumer electronics, furniture, communication, food & beverages,
pharmacies, beauty retail, saloons, books, stationery & music are being added to Big
Bazaar.

25
Pioneering the Hypermarket Format
Its the hypermarket format in the value retail segment of the company; its aim is to
capture the middle income value focused customer. Product offerings are mainly general
merchandise and apparels. Apparels form 40% of the total revenue, 60% being general
merchandise. The company has maintained 50% of apparel sales from private labels.
It is the fastest growing format in the organized retail space. Pantaloon has aggressive
plans for this format of taking to total number of outlets to 225 by 2010. Currently its
about 70 outlets.
Big Bazaar covers 3-25 mn sq. ft. currently, to increase to 9 mn sq. ft. by 2010. Average
sales per sq. ft. at Rs.8500 can generate a sales of Rs.7650 cr, by 2010. Expected Gross
Margin -24%. Expected EBIDTA 7-9%.
This format would face maximum competition going forward as all the major new
entrants have plans to enter into the hypermarket segment.
The companys aggressive roll out plan for this format is to be able to achieve economies
of scale in souring of products and protect the overall margins.

26

7.3 Food Bazaar

The food and grocery retail format of the company is capturing the middle income
value focused customer. FMCG along with dry and wet staples from the main product
categories of this format. The format has been will accepted by the Indian women as it
has been able to offer scheme and discounts on various products because of its economies
of scale in operations. The company has been able to offer all the daily needs related to
the food and grocery under one roof. Pantaloon retail plans to expand this format (to
smaller towns and cities) more rapidly going forward to achieve further economies of
scale.

110 stores by 2007 end, and 250 by 2010 1.2 mn sq. ft. by 2007 end, and 2.50 mn sq.ft.
by 2010. Average sales per sq. ft. at Rs.14,000. Can generate a sales of Rs.3250 cr.
By 2010. Expected gross margin 15%.
The success of this format has prompted the company to take this format to smaller towns
and cities. Though being a low margins business but higher turnover nature makes it a
profitable proposition for Pantaloon. In order to maintain its competitive advantage in
this format, the company needs to invest to improve the back end.
Central
The departmental format of the company, aims to cater the upper middle income
consumers. Its been positioned as one stop destination for shopping and entertainment.
Central has the same growth rate of 40%. In the Central Model the company sub leases
its spaces to concessionaries, restaurant and food court managers which assure a fixed
rental and a certain percentage of sales, with no inventory carrying on its books, this
constitutes 70% of central sales.
Currently the company has 3 Central Stores (2006 end). Central model is highly scalable
and would be successful in other cities where the company plans to open.

27
9 Stores by 2007 end and 22 by 2010.
1.35 mn sq. ft. by 2007 end and 3.5 mn sq. ft. by 2010
Average sales per sq. ft. at Rs.7500
Can generate a sales of Rs.2300 cr. by 2010
Expected Gross Margin 28%.
Expected EBIDTA 12-15%

FASHION STATION
15 stores by 2007 end & 80 by 2010
0.15 mm sq.ft. by 2007 end & 1 mn sq.ft. by 2010
Average sales per sq.ft. at Rs. 8000
Can generate a sales of Rs. 770 cr. By 2010
Expected gross margin 41%
Expected EBIDTA 12%

28

8. BRAND FACTORY
Pantaloons game plan with this new format is to raise the bar of customer expectations &
experience when it comes to Brand + Bargain shopping. There is a huge market
opportunity in this category where over 70% of the people shopping at Factory outlets are
under the age group of 30 years who want fashion brands at reasonable price.
Pantaloon retail is trying to fill in one gap in the apparels, offered through Pantaloons
(life style) & Big bazaar (value segment). The company plans to offer all the major
national & international brands.
Pantaloon retail is trying to change the perception of the consumers that factory outlet
shopping is not about seconds experience & it is not about buying cheap. Instead, its all
about an amazing experience of Buying Smart.

3 stores by 2007 & 20 by 2010

0.25 mn sq. ft. by 2007 & 1.0 mn sq. ft. by 2010
Average sales per sq. ft. at Rs. 13,000
Can generate a sales of Rs. 1300 cr. By 2010
Expected cross margin 28%
Expected EBIDTA 8%

29

GINI & JONY FREE WORLD

Todays urban child is like a king in the family, as its importance is increasing &
influencing in all the purchasing decisions of the family. As the urban child is getting
more exposed to the western world through various media, the child today is becoming
smarter & also has started having aspirations. Pantaloon retail wants to capture the
growing aspirations amongst kids. Pantaloon is tapping this mega opportunity by having
a Joint venture with Gini & Jony, one of the leading kids apparel brand.
The size of the kids apparel market is estimated at Rs. 130 bn. The CAGR growth in the
branded apparel segment has been about 46% for the past 3 years.

83 stores by 2007 end & 180 by 2010

Average sales per sq.ft. at Rs. 6,700
Can generate a sales of Rs. 120 cr. By 2010
Expected gross margin 53%
Expected EBIDTA 9%

8.2 BLUE SKY

50 Stores by 2007 end, & 125 by 2010
0.04 mn sq.ft. currently & 0.10 mn sq.ft. by 2010
Average sales per sq.ft. at Rs. 10,000
Can generage a sales of Rs. 100 cr. By 2010
Expected gross margin 32%
Expected EBIDTA 12%

30

9. DATA ANALYSIS
9.1 Big Bazaar Revenue Mix

40%

General
Merchandise
Apparels

60%

9.2 Pantaloon Revenue Mix

18%

1%
39%

25%
17%
Big Bazaar

Pantaloons

Food Bazaar

Central

Fashion Station

31

9.3 Value Revenue Mix

1%

37%

62%

Big Bazaar

Food Bazaar

Fashion Station

9.4 Lifestyle Revenue Mix

48%

52%

Pantaloons

Central

32

9.5 Revenue Mix

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

43%

52%

57%

48%

2004

2005

Value

31%

69%

2006

Life style

9.6 Retail Space Mix

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

58%

61%

64%

42%

39%

36%

2004

2005

2006

Value

Life style

33

9.7 Performance of various formats on 31.12.2006

Formats

No. of Outlets
2004
2005
2006

Space (mn sq. ft)

2004
2005
2006

Value Retailing
Big Bazaar

10

19

29

0.41

0.83

1.15

Food Bazaar

15

30

45

0.11

0.29

0.43

Fashion Station

0.03

0.09

Total

25

50

79

0.52

1.148

1.67

Pantaloons

12

12

21

0.29

0.29

0.48

Central

0.13

0.47

0.47

Total

13

15

24

0.42

0.76

0.95

Lifestyle

9.8 Pillars Going Forward For 2010

Formats

No. of Outlets
2007
2010

Space (mn sq. ft)

2007
2010

Value
Big Bazaar

75

225

3.3

Food Bazaar

110

250

1.2

2.5

Fashion Station

15

80

0.15

Brand Factory

20

0.25

203

575

4.9

13.5

Pantaloons

42

80

1.1

Central

22

1.35

3.5

Home Town

35

0.6

2.7

E-Zone

20

86

0.2

0.86

Total

76

223

3.25

9.06

Total
Lifestyle

10. Bottlenecks and Challenges with Indian Retailers

34
Factors
Structural

Description
Lack of urbanization

Impediments

Poor transportation
infrastructure

Implications
Lack of awareness of
Indian consumers

Restricted retail growth

Growth of small, onestore formats with

unmatchable cost

Pro tenant rent laws

Real Estate

Non-availability of

real estate in terms of

government lands, zoning

location & size

restrictions

Bottlenecks

Disorganized nature of

Several segments like food

transactions.
Limited product range

& apparel reserved for

Makes scaling up

SSIs

Distribution, logistics

difficult

constraints

High land cost owing to

constrained supply

Lack of clear ownership

titles, high stamp duty

Supply Chain

structure
Difficult to find good

High Cost of

Long intermediation chain

High cost & complexity

of sourcing & planning

Lack of value addition &

increase in costs by

Customer

Local consumption habits

Preferences

Need for variety

Cultural issues

almost 15%
Leads to product
proliferation

Increased complexity in
sourcing & planning

Availability of

Lack of proper training

talent

Highly educated class does

Increase the cost of store

management
Higher trail & error in
managing retail

35
not consider retailing a
profession of choice
Barriers to FDI

FDI not permitted in pure

retailing

Franchisee arrangement
allowed

operations

Increase in personnel

cost.
Limited exposure to best
practices

36

11. Performance of Pantaloon Retail (India A Brief note :)

11.1 Point of sale - Real estate is the raw material of a successful retailing business.
Having the right real estate in prime locations is the key for a retail chain, availability of
right real estate would drive the sales, a proper catchments analysis of locations of outlets
is needed to increase the footballs & conversions.
Pantaloon in this regard is a way ahead because it has locked into real estate at prime
locations in all the major cities of India. The company is expected 30 million sq. feet of
prime locations in all the major cities of India. The company is expected 30 million sq.
feet of real space by 2011 covering 80 cities of India.

11.2 Sourcing of merchandise

Sourcing of merchandise from the right vendor at the right price is an important factor,
because efficiency in buying would ultimately increase te gross margins. Going with
competition in major formats, it would be difficult to improve gross margins. But
competition would not be amongst retailers alone but also amongst vendors to supply at
the most competitive price. Any retailer with significant size will be able to improve its
sourcing. Pantaloon with its projected scale is able to source its merchandise from its
vendor at reasonable rates.

11.3 Selling of Merchandise Selling the right products to the right consumer is an
important parameter of a retail chain.

Pantaloon has been very successful in this

parameter by building different formats catering to different customer needs. Pantaloon

has created a bond with the Indian customer & clearly understand its needs & wants.

11.4 Higher Inventory turns In any retail chain selling merchandise should move
quickly from the shelves. This could only be achieved by having lower inventory levels
& higher assets turns. Pantaloons inventory has been on a rise mainly because of the
store expansion & fashion constituting 40% of the total sales. Pantaloon assets turns are
not so impressive but going forward it would improve.

37

12. KEY RISKS

Execution of plans is the biggest risk
The company plans to become 10x its current size in terms of floor area by 2010. There
are a lot of exogenous factors that could impact the companys plans. Delivery of stores
are behind schedule by an average of 2 quarters for most companies. As these store
deliveries get bunched up for most of the players towards 2009-2010. There could be
further delay in store delivery. Besides, there are multiple clearances to be taken by local
& other authorities, which can prove to be bottleneck.
Rising resource cost to put margin pressure
The employee cost & property costs will be 2 key pressure points for all retailers.
Traditional human resource management methods have been unable to reduce employee
turnover.
Likely equity dilution to finance growth
The company would need capital in the region of USD 600 mn. For its growth plan until
FYO9E. The company would need external funds for its growth. 9% dilution has
already happened Y TID FYO7E.
Strain on management bandwidth
PRIL is expanding into multiple formats & multiple geographics over the next few years.
Besides, it is investing in various non-retailing businesses. The company could face
management bandwidth shortage in a few years from now. Decision making is quite
decentralized with powers devolved to line managers.

However, as the company

multiplies, they would need stranger MIS, internal auditing systems, & risk management
to ensure good management of such large entity.
Untested formats like Home solutions & new non-retailing business.
PRIL plans to grow in the home solutions business over the next few years. The market
for home improvement & furnishing is getting bigger due to the increasing number of

38
residential as well as commercial buildings, & the organized market is almost non
existent. The key reasons for the negligible presence of organized market are the lack of
skilled professional service providers, non existence of contract based layout force &
under investment. Significant amount of training & orientation would be required to
convert the existing labour into professional skilled force.
There are risks associated in entering into business like insurance because the way
financial products & services are bought in India, it will take a significant change in
mindset to start buying from groceries store.

39

13. The power of private labels by Pantaloons

When PepsiCos Frito-Lay decided of boycott Pantaloons Food Bazaar due to
differences in terms of trade, it was the latters private label which got a boost in shares.
Today Tasty Treat, the ready-to-eat private label of Food Bazaar, is leading with a 16 per
cent share among the rest of the snack brands.
Today Pantaloon Retail has 80 products comprising 350 SKUs with five private labels.
Since PepsiCos rejection, it has promptly approached local manufacturers such as
Prakash Snacks in Indore and Pogo Chips in Kolkata to manufacture its snacks brands.
Arvind Chaudhary, CEO (Foods Business), Pantaloon Retail, adds, The purpose of
Pantaloon private labels is to grow the category and fill the gaps between demand and
supply. Today Group/Company have upgraded Pantaloon suppliers with better quality
systems and processes for the snacks category, where there was a gap.
The power of private labels is being explored by most retailers today, as they do not want
to be at the mercy of the big manufacturers. At the same time they also realize that its not
going to be easy as it takes time and money to build private labels. Observes K.
Radhakrishnan, Chief Executive. Hypermarkets, Reliance Industries, While its
Pantaloon strategic intent is to build private labels, it is more difficult and takes longer to
build these brands. However, in categories such as commodities, it is easier to build
private labels. At present, nearly 15 percent of Pantaloon hypermarket brands comprise
private labels.
The private label product proposition: Quality and price, primarily, relative to branded
alternatives
How strong supplier brands are in the minds of Indian Consumers: Many supplier brands
are relatively new in India, so potentially have less awareness, and therefore, easier for
private label products to supplant supplier brand products

40
How effectively suppliers innovate: Supplier innovation if often what allows them to stay
ahead of retailer private label. Innovative suppliers can come out with new products that
retailers havent necessarily thought of.
How consolidated Indian retail eventually becomes: The more market share a retailer has,
the greater the opportunity to create the leverage a retailer can put on a supplier. This may
be one reason why the UK has greater PL penetration than the US UK retail is more
consolidated than US retail. Right now, India retail is highly fragmented, so theres a long
way to go, as KSAs Maroo observes.

41

14. Detailed Financials

14.1 Income Statement

Particulars
Net sales
Operating expenses
Raw material

FY04

FY05

FY06

FY07

FY08E

6,585
(6,021)
(4,368)

10,840
(9,991)
(6,988)

18,678
(17,258)
(12,455)

35,033
(32,297)
(23,367)

63,200
(58,373)
(42,091)

consumed
Freight
Power & fuel
Employee expenses
Selling & Distribution

(116)
(121)
(345)
(322)

(251)
(220)
(659)
(499)

(383)
(374)
(1,327)
(697)

(841)
(701)
(2,420)
(1,612)

(1,580)
(1,264)
(4,079)
(2,971)

expenses
Administrative

(129)

(217)

(375)

(666)

(1,580)

(1)

(1)

(1)

(1)

w-offs
Royalty
Other operating

0
(620)

(1)
(1,155)

0
(1,667)

0
(2,689)

0
(4,806)

expenses
Operating profit

562

849

1,420

2,736

4,827

expenses
Bad debt provision /

42

EBITDA
Depreciation
Other income
EBIT
Interest paid
Pre-tax profit (before

562
(88)
18
492
(236)
256

849
(133)
50
766
(282)
484

1,420
(208)
43
1,254
(335)
919

2,736
(327)
0
2,409
(751)
1,658

4,827
(451)
0
4,376
(1,368)
3,008

256

484

919

1,658

3,008

items)
Tax (current +

(46)

(145)

(277)

(580)

(1,053)

deferred)
Tax provided
Deferred tax
Net profit
Adjusted net profit

(15)
(31)
211
211

(75)
(70)
338
338

(128)
(149)
643
643

(252)
(348)
1,078
1,078

(421)
(632)
1,955
1,955

non-recurring
items)
Pre-tax profit (after
non-recurring

14.2 Balance Sheet

Particulars

FY04

FY05

FY06

FY07E

FY08E

Current assets
Cash & bank
Debtors
Inventory
Loans & advances
Other current assets
Non-current assets
Investments
Fixed assets (Net

2,300
138
176
1,576
410
0
1,801
33
1,748

4,039
215
123
2,759
937
5
2,614
319
2,295

8,823
217
170
5,070
3,355
11
8,360
1,406
3,954

16,530
245
196
9,984
6,110
0
7,422
1,906
5,516

26,238
181
346
16,748
8,963
0
9,018
2,406
6,612

block)
Gross block
Less: Depreciation
Add: Capital WIP

1,847
(243)
144

2,511
(374)
158

3,660
(567)
861

6,410
(894)
0

7,910
(1,293)
0

43
Total assets
Current liabilities
Creditors
Tax payable
Dividends payable
Tax on dividend payable
Other current liabilities
Other provisions
Non-current liabilities
Total debt
Deferred tax liabilities
Total liabilities
Shareholders funds
Paid up Capital
Reserves and Surplus
Share Premium
Retained earnings
Other reserves
Less Misc expenditure
Total equity &
liabilities

4,101
729
546
27
29
4
113
10
2,427
2,366
60
3,156
945
191
758
366
381
10
(4)
4,101

6,653
1,455
895
96
35
8
375
25
2,988
2,857
130
4,436
2,212
220
1,995
1,251
665
79
(3)
6,653

14,183
2,622
1,844
198
67
9
454
51
6,292
6,013
279
8,914
5,269
269
5,000
3,721
1,166
113
0
14,183

23,953
3,900
2,671
199
70
10
950
0
11,771
11,144
627
15,671
8,282
281
8,001
5,691
2,197
113
0
23,653

35,256
6,126
4,460
361
70
10
1,225
0
18,913
17,634
1,259
25,038
10,217
281
9,936
5,691
4,132
113
0
35,256

44

15. TABLES
15.1 Table No.1
Different Format at Pantaloon Retail India
Product Category
Food

Fashion

Home & Electronics

Telecom & IT

Concepts
Brew Bar
Caf Bollywood
Chomosa

Status
Operational
Planned
Operational

Format/Offerings
Beers, snacks and set meals
Eateries
Snack counter in high traffic

Food Bazaar
Rain
Sport Bar
aLL

Operational
Operational
Operational
Operational

area
Supermarket
Food and beverages
Focused on sports lovers
Fashion apparel for plus-size

Big Bazaar
Blue Sky
Central
Fashion Station
Gini & Jony
Pantaloons
Collection i
Electronics Bazaar
e-zone
Furniture Bazaar
Got it

Operational
Operational
Operational
Operational
Operational
Operational
Operational
Operational
Operational
Operational
Planned

individual
Hypermarket
Fashion accessories
Seamless malls
Popular fashion
Kids fashion
Department store
Home furnishings
Present within Big Bazaar
Consumer Electronics
Home furniture
One stop shop for home

Home Town
Gen M
M Bazaar

Planned
Planned
Planned

maintenance
One stop Destination
Hi-tech products
Solutions for knowledge,
entertainment and

Planned

communication
Standalone stores/Shop-in-

Big Bazaar

Operational

shop
Hypermarket

Blue Sky
Central
Footwear Bazaar

Operational
Operational
Planned

Fashion Accessories
Seamless malls
Footwear and accessories

M Port
General
Merchandise

45

Leisure &

Navarasa
Pantaloons
Shoe Factory
Bowling Co.

Planned
Operational
Operational
Operational

N.A.
Department store
Footwear and accessories
Premium family

Operational

entertainment center
For leisure and

Planned
Operational

entertainment
N.A.
Beauty salon for men and

Operational
Planned

women
Pharmacy
Cut-in format at Food

Entertainment
F 123
Wellness & Beauty

Health Village
Star Sitara
Tulsi
Turmeric

Bazaar
Books & Music
Depot
Operational
Books and music
e-tailing
Online retailing
Operational
Futurebazaar.com
Source: Complied by the author from the company website

46

15.2 Table No.2

Landmark Groups Presence Across Different Formats of Retail in India
Baby- Shoe
shop
Currently 9
Additions 4

mart
9
4

13

Splash Home

Lifestyle Max Fashion Funcity Total

9
4

Center
10
9
4
4

13

14

2
9

Brands
7
11

52
42

11

18

97

Till Dec
2006
Total till

13

13

Dec 06
Source : Company Website

15.3 Table No.3

Presence of Departmental Stores in various cities in India
Location

Westside Pantaloon Lifestyle Ebony Shoppers Globus Pyramid Total

Stop

Ahmedabad
Amritsar
Bangalore
Baroda
Chandigarh
Chennai
Delhi
Faridabad
Ghaziabad
Gurgaon
Hyderabad
Indore
Jaipur
Jalandar
Kanpur
Kolkata
Lucknow
Ludhiana
Mangalore
Mumbai
Nagpur
Noida

1
3
1

1
1

1
1

2
1

1
1
1

1
1
3
1
1
1
1
1

1
3
1
1
1

2
1

1
1

1
1

1
1
1

1
2
1

1
2
1

4
1
1

1
4

7
1

1
1

5
1
9
2
1
7
10
1
4
4
4
3
2
1
2
6
1
1
1
21
2
2

47
Rajkot
Pune
Thane
Secunderabad
Total

1
1

1
1

23

22

19

13

1
5
1
1
98

48

16. Empirical studies on Food Bazaar by Pantaloon Retail

India Limited on Consumer Perception

16.1 Research Methodology

Research Descriptive
Data source Primary Data
Research Approach Survey Method
Research Instrument Questionnaire
Questionnaire type Structured non-disguised
Type of questions Both Close-ended & Open-ended
Sampling Unit Individual
Sampling Frame NCR
Sampling Procedure Simple Random sampling to select 5 stores and
convenience for select customer/shoppers.
Sample size 300 customers
Contact Method Personal
Mode of Collecting Data The respondents were chosen randomly
and requested to grant interviews. The questions were then asked in
predetermined sequence.

49

Data Processing (i) A number of tables was prepared to bring out the
main characteristics of the collected data. (i) Inferences were drawn
from the collected data.

50

17. Analysis
17.1Choice of retail store for grocery shopping

51

ANALYSIS
17.2 Expenditure on various food items

18. LIST OF REFRENCES

1.

Milestones, an ORG-MARG publication.

2.

Philip Kotler, An Outlook for Retailing in India

3.

www.economictimes.indiatimes.com

4.

www.retailyatra.com

5.

Chain Store Age, Food Focus Grows Format Exponentially

6.

www.pantaloon.com

52

19. APPENDICIES
19.1 Questionnaire
1.

Please rank the following parameters in the order of their importance (on a scale
of 1-6, 1-bing most important and 6-least important)

Parameter

Ranking (1-6)

Personal Attention
Facility of home delivery
Facility of credit purchase
Ambience / Touch and feel
Long term discount/ free gift
Parking facility
2.

Please tick the appropriate option based on your choice of retail store you buy
your groceries from?
Neighborhood

Big Bazaar

Other

retail Purchase

Kirana/General

Store/super

amount

Store

bazaar

(monthly)

a) Daily Supplies
b) Monthly Ration
3.

Please tick the relevant option regarding milk purchase.

Loose milk

Packaged milk

(delivered at home)

4.

From dairy (freshly

Daily purchase

milked)

(quantity)

Please tick the appropriate option (choose only one option for place of
purchase)

Place of purchase
Kirana

Super

Frequency of Purchase
Daily Twice Once Once Once

Rupees

53
Store/sabzi Market/Big

Mandi

week

week week month per

Bazaar

in 2 a
or
more

Food Items
a) StapleRice, Pulses,
Sugar
b) Vegetable,
Fruit, & Fresh
juices
c) Edibles
oils, Spices &
Pickles
d) Bread
related &
biscuits
e) Snackscornflakes
Chips Maggie
Kurkure etc
f) Beveragespacked juices
& soft drinks
g) Meat &
eggs
h) Dairy
productsbutter, ghee,
chocolates
Personal Care
a) Cosmetics,
deodorant,
beauty soaps,

spend
month

54
face wash,
shampoo &
oil
b) Toiletriestooth paste &
brush shaving
products
c) Sanitary
napkin, baby
product
HOME ESSENTIALS
a) Washing
Soap &
detergent
b) Mosquito
repellent,
broom, toilet
cleaner

5.

In the previous question, the categories for which you have selected daily, twice a
week or once a week; select the specific item (tick the option, multiple options
allowed)

a) Staples-Rice

Rice

Sugar

Wheat/flour

Pulses

pulses, sugar
b) Vegetables,

Potato,

Seasonal

Fresh juice

Fruits

Fruits
c) Edibles oils,

Tomato, onion
Spices

vegetables
Mustard oil

Sunflower oil

spices, pickles
d) Bread related

Bread

Bakery product

Branded biscuits

& biscuits
e) Snacks-

(bun, pizza
Maggie

base)
Packed Snacks

Unbranded
biscuits

Breakfast items

55
cornflakes,

(chips, kurkure)

chips, Maggie
Kurkure etc.
Beverages-

Packed juice

Soft drinks

Mineral water

Eggs
Butter

Chicken
Ghee

Mutton
Chocolates

packed juices &

soft drinks
Meat & eggs
Dairy Products-

Fish

butter, ghee,
chocolates

6.

How satisfied are you with your preferred store on the following parameters
(please tick the appropriate option)

Factors

Strongly
disagree

a) Packed Milk is of better

quality than loose milk
b) Store of some big
company is expensive
c) Packed flour, pulses,
etc. have better quality
than the unbranded
product available at local
kirana store
d) Vegetables, Fruits
would be cheaper in sabzi
market as compared to an
air conditioned shop
e) Vegetables, Fruits are
fresher in sabzi market as
compared to an air
conditioned shop

Disagree

Neutral Agree Strongly

agree

56
f) Will not purchase from
a store, which sells fresh
meat.
g) I will prefer to purchase
vegetables from an aircondition shop as compare
to sabzi market
h) I will purchase from a
new store which provides
cheaper goods even if I
dont know the store
owner personally.

Personal Details:
Family size:

Occupation (earning member)

i.

Working Professional

ii.

Self-employed

iii.

Housewife

iv.

Student

v.

Senior Citizen

Monthly Expenditure:
i.

Less than 5000

ii.

5000-10,000

iii.

10,000-15,000

iv.

15,000-20,000

& above

57
v.

20,000 and above

Name:
..
Address:
a) House no..
b) Sector / sub area / Locality..
c) Colony / Mohalla..
d) City..
Contact no. with STD code:
.

Optional:
Name

of

family Date of birth

Marriage anniversary

member

Thank You

To be filled by the interviewer

Remarks:

58

Name of the interviewer .Signature.