Previous

Page - 4

Though the landscape of Retailing in Kerala has changed to a very large extend, it still holds true to a large extent even today.

Food World

Food World is one of the biggest retail chains in India. The RPG group opened the first Food World outlet on May 9 1996 at Chennai, which was a 2400 square feet store.
It is the only national chain, having Foreign Direct Investment to the extent of 49% that is permitted in India. Now Food World operates as a 51:49 joint venture with Dairy Farm International of the Jardine Matheson Group, a US $ 4.5 billion retail giant operating in the Asia-Pacific markets with the requisite experience.

Food World has decided to concentrate more on local areas rather than go for a nationwide presence in its expansion plans at the beginning. South India was chosen, with focus on Bangalore and Chennai and later in Hyderabad. They identified areas within the city with more than 4000 households in a 2-kilometer radius with an average monthly income more than Rs. 4000.

The important variables considered while setting up an outlet are choosing the right location, sourcing the merchandise and recruiting a trained workforce. A typical store is between 3000-3500 sq.ft. in size and carries about 5500 items. Food World handles on average 600 customers per day per store, which translates to 1.5 million transactions per month. It is estimated that the chain serves more than three lakh families.

Ms. Mala Morris, Manager-Marketing of Food World says that as on 1st November 2003, Food World has 89 outlets spread across Tamil Nadu, Karnataka, Andhra Pradesh, Kerala and Maharashtra (Pune). Speaking on the product portfolio, she said that, "Our strategy is to provide all the monthly household requirements under one roof. Our product portfolio includes grocery of all kinds, fresh foods, viz., fruits and vegetables in fresh / chilled / frozen form, food that can be directly consumed, food and non-food FMCG products, general merchandise required in homes like buckets, cups, shelves, etc. Indian made Foreign Liquor is also sold at certain outlets."

Next

* Contributed by -
Thomas Cris Sarasam,
B.E. (Elec. & Comm.), Karunya Institute of Technology, Bharathiar University,
Currently pursuing MBA (Systems/Marketing), College of Engg, Trivandrum.