RATNADEEP: READY RECKONER
Retailer/ Brand Name: Ratnadeep
Launch Year: 1987
Parent Company: Ratnadeep Super Market Pvt. Ltd.
Company Headquarters: Hyderabad
Key People: Sandeep Agarwal (MD); Manish Bhartiya (Director)
Store Format: Convenient/ Fresh
Average Size of Store: 6,000 sq.ft.
Total Number of Outlets: 38
Total Retail Space (in sq. ft.): 2.25 lakh sq.ft.
Cities where operational: Hyderabad, Secunderabad
Annual Turnover: INR 550 crore
Average Sales per sq.ft.: INR 2,500
Same Store Sales Growth: 9%
Average Footfall: 790 per day per store
Average Bill/ Ticket Size: INR 500
SKU Count in Store: 12,000 in F&G; 20,000 plus inclusive of GMS,
Number of Employees: 2500
owned supply chain management, which is unique in the retail industry. The supply chain system is enabled with the daily inventory delivery matrix to the store locations.
What is the location strategy for your stores?
Manish Bhartiya: Our stores are located on high streets and main streets keeping in mind our focus on customer convenience. All our stores enjoy ample parking facilities with hassle-free customer passage into the store.
What is the investment needed for setting up a new store and how much time does it take for a store to break even?
Sandeep Agarwal: Generally speaking, each of our store costs about Rs. 1.5 crore and above to set up. The break-even period ranges between six and nine months or a year from the start of operations.
With your years of retailing experience, what do you feel are its most essential attributes for ensuring sales and profitability?
Sandeep Agarwal: First and foremost, you need to have a firm grip on the inventory control and focus on cost optimization without compromising on the standards of service to the customer and your back-end operations. The profitability is generally under pressure due to the
escalated supply chain management costs/ inventory carrying costs/ pilferage and rentals/ manpower cost, etc…so these metrics need to be worked on meticulously and maintained at all times. In the end, you need to give your best on all fronts without compromising on the front-end so that customers go back with a pleasant shopping experience.
We comply with and follow all the statutory regulations/ compliances on all fronts, which is imperative to driving sustainability in operations and maintaining a conducive work environment at all levels. All of these factors are necessary to accomplishing business survival, and drive sustainable operations with reasonable profitability.
What have been your major learnings in this business?
Sandeep Agarwal: You get to learn something new every day. Your learning never stops so one should keep looking at ways to offer still higher levels of customer satisfaction through creative planogramming, customer-friendly navigation, better service standards, quality offerings, and in every other way.
How would you describe your achievements so far?
Sandeep Agarwal: Ratnadeep Super Market today operates 38 stores located in Hyderabad/ Secunderabad. The average daily bill per store is Rs. 790 + approximately and our total trading area spans over 2,25,000 sq. ft. All our processes and systems are authorized under ISO 9001-2008 & 220002005 standards. We have been able to establish best practices in the organization and the work place system in accordance with the best “5S” practices. We have also been awarded with a certificate of achievement by a global certification body. Our financial standing is rated Crisil BBB+, which falls under “stable” category. We have implemented CRM/ loyalty program points in our stores with unique customer telephone/ mobile number as identification. Our CRM loyalty program, known as “AGAIN” has a million plus customer base and its membership is simple and hassle-free. The program comes loaded with various benefits like automatic purchase points’ accumulation, convenient redemption, announcements of schemes and offers from time to time, and other benefits.
Ratnadeep stores run on a strong software platform, which allows us to efficiently manage the inventory/ pricing/ billing/ CRM and other operations. Store-wise assortment with unique customer friendly planogramming and navigation methodology are integral features across all our stores. — Manish Bhartiya Director, Ratnadeep Super Market Pvt. Ltd.
Tell us about your plans for the future?
Sandeep Agarwal: We have a chalked out plans for continuous expansion of our stores, going forward. We have plans for launching, in different phases, different format stores like food & grocery stores with a Food Court and partnering with international, national, and premium local brands.
We are working with a clear vision to be a National retail chain and a Rs. 1,000 crore plus brand in food & grocery by 2020. It will make Ratnadeep the only regional retail chain in India to achieve this benchmark in such a short span. By next financial year, we are looking to expand our brand footprint in other zones of the country.