Tata-Tesco, a joint venture between Tata and British retailer Tesco is expanding its Hypermarket. They are planning to open 50 retail stores in Hyderabad in the next 2-3 years apart from setting up a distribution center.
The expansion is in accordance to complete the target of 200 stores in cities like Mumbai, Pune, Hyderabad, and Bengaluru. The chain has currently 45 stores across India.
When asked on the sidelines of the launch of Star Hyper’s store in Hyderabad, Jamshed Daboo, managing director, Trent Hypermarket said, “Majority of our upcoming stores would be in the 8,000-10,000 sq. ft. segment under which Star Market operates and will be our growth driver. This segment requires lesser space and helps us to stay in city hotspots, closer to the customer.”
He added that a Star Market store entails an investment of ₹3-4 crores while the distribution center will see ₹25 crores in investments. The company has identified a 70,000 sq. ft. space for its distribution center which will cater to the Hyderabad market. It already has two distribution centers that cater to Mumbai-Pune and Bengaluru stores.
Daboo, when asked about the impact of the goods and services tax (GST) on the retail industry said that it will simplify the logistics part through which efficiency of the company will increase. He also believes that GST will leave a positive impact on the industry.