The Indian version of the US retail chain 7-Eleven plans to open 100 convenience stores in New Delhi and surrounding areas by August.
NEW DELHI: Big Apple, the Indian version of the popular US retail chain 7-Eleven, plans to open 100 convenience stores in the national capital and surrounding areas by August to cater to the urban consumers.
With shopping becoming another casualty of long working hours, Express Retail Services Pvt Ltd is rapidly expanding its Big Apple chain of convenience stores with 25 stores already merchandising 2,500 products including FMCG, grocery, fruits and vegetables, company managing director Munish Hemrajani said.
"I have a kitty of Rs 100 crore which I have to exhaust by March 31, 2008," he said.
"We just opened our 25th store in Delhi and by August we will be 100 stores."
The stores will remain open from 7:am to 11:pm.
After August, Big Apple will expand into cities adjoining the national capital to double the number of stores to 200.
In the second phase, expansion is planned in Karnataka and Gujarat, he said.
The company's stores are doing an average sales of Rs 16 lakh per day and it is just six-month away from break-even. "We are just two per cent away from break-even."
A typical Big Apple store is 1,500 to 1,800 sq feet and stores over 2,500 product merchandise, he said and claimed it was way ahead of competition from Reliance Retail's neighbourhood stores and Subhiksha. "We change product line every 90 days based on customer acceptance and demand."
The Rs 40 crore company has a direct tie-up with farmers in Haryana, Rajasthan, Himachal Pradesh and Uttar Pradesh.
"We opened our first store in November 2005 and followed it up with two more stores. We froze the numbers at that level to study the market. Once we had the market pulse, we decided to expand," Hemrajani said.
"We lease or hire space and our average hire rates are Rs 75 per square feet. Today we have 1,20,000 sq feet of retail space," he said.
Big Apple will next year stock its stores with apparel manufactured at its Nodia export unit.
"We may look at strategic partner or an initial public offer after our number of stores reach the critical mark next year. I cannot say which option we will go for."
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