<p>K Raheja group retail company HyperCITY Retail (India) Limited on Friday announced plans to open 10 more stores to cash in on the booming organised retail sector in India.<br /><br /></p>.<p>With the expansion, the seven-year-old company will have around 24 stores across the country in the next 3-4 years, with focus on Tier-I cities. <br /><br />HyperCITY has been successful in opening 13 stores across Bangalore, Amritsar, Bhopal, Pune, Ludhiana, Mumbai and Hyderabad.<br /><br />Talking to Deccan Herald, HyperCITY Chief Executive Officer Mark Ashman said, “We have signed agreements to establish the said stores in Tier-I markets, and a majority of these stores will be roughly 50,000 sq ft,” adding that the stores will encompass various formats of standalone stores, stores inside malls and so on.<br /><br /> “Most of our stores, which are in sizes between 50,000 and 1.2 lakh sq ft, are on rented spaces, based on a blend of fixed minimum guarantee and revenue-sharing model,” Ashman said. The company has already begun on-site work in stores in Mumbai, Hyderabad and Vadodara. <br /><br />“The strategy is to have more stores in fewer cities, which will improve efficiency, bring forth market dominance and cut logistical and marketing costs,” he said, referring to the reason behind HyperCITY being focussed on bigger cities. <br /><br />Ashman informed that the period for a store in a Tier-I city to break even is around 12 months, which makes the proposition to open stores here very conducive. The cost to set up HyperCITY stores ranges between Rs 5 crore and Rs 8 crore, excluding land cost. <br /><br />Compact stores<br /><br />HyperCITY has come out with a new store concept, which includes setting up of smaller hyper markets, occupying an area of 30,000 sq ft, across the country. Unlike its larger siblings, which stack everything from food products, clothing, toys, accessories, sports equipment, furniture and electronics among others, the compact store will stack merchandise on a smaller scale sans furniture and electronics. <br /> <br />The compact stores, the company believes, will help it secure better profits. “The idea is to either downsize existing larger stores or set up small individual stores. The new concept will enable us to reduce costs on staffing, rental, electricity and maintenance, which will considerably help our overall business grow,” Ashman added. HyperCITY inaugurated its first compact store in Bangalore on Thursday, following which it is exploring other markets as well.</p>
<p>K Raheja group retail company HyperCITY Retail (India) Limited on Friday announced plans to open 10 more stores to cash in on the booming organised retail sector in India.<br /><br /></p>.<p>With the expansion, the seven-year-old company will have around 24 stores across the country in the next 3-4 years, with focus on Tier-I cities. <br /><br />HyperCITY has been successful in opening 13 stores across Bangalore, Amritsar, Bhopal, Pune, Ludhiana, Mumbai and Hyderabad.<br /><br />Talking to Deccan Herald, HyperCITY Chief Executive Officer Mark Ashman said, “We have signed agreements to establish the said stores in Tier-I markets, and a majority of these stores will be roughly 50,000 sq ft,” adding that the stores will encompass various formats of standalone stores, stores inside malls and so on.<br /><br /> “Most of our stores, which are in sizes between 50,000 and 1.2 lakh sq ft, are on rented spaces, based on a blend of fixed minimum guarantee and revenue-sharing model,” Ashman said. The company has already begun on-site work in stores in Mumbai, Hyderabad and Vadodara. <br /><br />“The strategy is to have more stores in fewer cities, which will improve efficiency, bring forth market dominance and cut logistical and marketing costs,” he said, referring to the reason behind HyperCITY being focussed on bigger cities. <br /><br />Ashman informed that the period for a store in a Tier-I city to break even is around 12 months, which makes the proposition to open stores here very conducive. The cost to set up HyperCITY stores ranges between Rs 5 crore and Rs 8 crore, excluding land cost. <br /><br />Compact stores<br /><br />HyperCITY has come out with a new store concept, which includes setting up of smaller hyper markets, occupying an area of 30,000 sq ft, across the country. Unlike its larger siblings, which stack everything from food products, clothing, toys, accessories, sports equipment, furniture and electronics among others, the compact store will stack merchandise on a smaller scale sans furniture and electronics. <br /> <br />The compact stores, the company believes, will help it secure better profits. “The idea is to either downsize existing larger stores or set up small individual stores. The new concept will enable us to reduce costs on staffing, rental, electricity and maintenance, which will considerably help our overall business grow,” Ashman added. HyperCITY inaugurated its first compact store in Bangalore on Thursday, following which it is exploring other markets as well.</p>
