Shares of Future Group firms rise on plan to open 10,000 member-only stores
Shares of Future Retail Ltd surged as much as 9 per cent after holding company Future Group said on Tuesday it planned to open 10,000 member-only stores by 2022. As of 12.25 pm, shares of Future Retail rose to 8.33 per cent.
NEW DELHI: Shares of Future Retail Ltd surged as much as 9 per cent after holding company Future Group said on Tuesday it planned to open 10,000 member-only stores by 2022. As of 12.25 pm, shares of Future Retail rose to 8.33 per cent.
Other group companies, Future Enterprises Ltd, Future Lifestyle Fashions Ltd and Future Consumer Ltd were also trading higher by up to 6 per cent.
Future Group plans to open 10,000 member-only Easyday stores to make it a Rs 1.5 trillion business opportunity by 2022. The retail chain unveiled a 30-year vision, Retail 3.0, by when it plans to become Asia's largest integrated consumer retailer by 2047 with revenue of in excess of $1 trillion. Future Group chief executive Kishore Biyani said by the end of the current fiscal, the group will have 1,100 Easyday stores from the present 700.
Each such store will have an investment of around Rs 15 lakh, he added. "We will have 10,000 member-only stores by 2022, and assuming certain spends, this will be a Rs 1.5 trillion business opportunity for the group," Biyani said.
He said each member-merchant will be charged Rs 999 in annual membership fee, for which the member will get 10 per cent discount on all purchases.
These stores aim to place a outlet within 2 km of every consumer, and will have 2,500-3000 sqft area with 3,500 stock keeping units, he explained.Biyani said Easyday stores will be technologically-driven which will integrate physical presence, with tools to understand consumer behaviour and requirements, through artificial intelligence, and machine learning.
At present the group's businesses include Big Bazaar, Food Bazaar, lifestyle stores like Brand Factory, and Central. The group also runs neighbourhood format store Easyday, which is the same identity under which the new stores will be opened.
The group also announced a tie-up with online search engine Google, which will identify the catchment area for the stores, and aid its hyper-local recruitment, Google India managing director Rajan Anandan said. Future Group also tied up with social media platform Facebook for Retail 3.0, to drive social engagement.