After analyzing that consumers now prefer to buy online rather than offline due to various offers, Tata group has planned to enter into the grocery business. Tata Group is buying the management team and technology infrastructure of Gurgaon-based GrocerMax to invest in the grocery sector. To compete with rival Amazon and Bigbasket, the new team will set up the online platform for Trent Hypermarket which is a joint venture between Tata and British retailer Tesco. GrocerMax will shut down its business in Gurgaon as Tata Group is not present in North India.
The Tata group runs three formats under the Star banner—Dailies, Market and Hyper and has around 42 stores. While Tesco has nearly 6,800 stores globally. But the opportunity offered by the ₹32 lakh crore retail market is attractive for any player, foreign or local. Food and grocery account for almost 50% of the overall retail basket in India.
GrocerMax was founded two years ago by Gaurav Juneja and K Radhakrishnan. It is a hybrid platform for the grocery that keeps only 10% inventory, sourcing the rest from supermarkets and provisional stores in real-time.
Online grocery business will give more information about products or categories of products to consumers that will interest them and provides them with greater availability.