Softlogic enters supermarket business ...
„Ten more outlets in pipeline to be launched over next 8 months „Pathirage sees Rs.200bn modern retail trade doubling in three years
Foraying into Sri Lanka’s modern retail industry with global inspirations, Softlogic Holdings PLC last Friday launched its first Softlogic GLOMARK in Delkanda, with further plans to open 10 more Softlogic GLOMARK outlets across the country within the next eight months.
Speaking to Mirror Business on the sidelines of the launch of the first Softlogic GLOMARK in Delkanda, Softlogic Holdings PLC Chairman/ MD Ashok Pathirage predicted that the Rs.200 billion modern retail industry is likely to be doubled within the next three years.
According to Fitch Ratings, Sri Lanka’s supermarket penetration is still around 15 percent compared to the 30 percent for regional peers, with similar social and economic characteristics, which indicates the potential for the industry to grow.
“We are not looking at competition; we see so many opportunities for newcomers like us. Specially with all our expertise in furniture, electronics, etc. we have an enhanced product offering. We are really inspired to provide a great experience for our customers,” Pathirage stressed.
He asserted that GLOMARK would introduce a new benchmark in Sri Lanka’s modern trade and the consumers will have an international supermarket experience.
“Our selection spans all imaginable daily and household needs to infuse further convenience for shoppers. We understand today’s shoppers and their need for speed via tech-driven tools and easy shopping experience, which are all offered by GLOMARK’S inspired experience,” he added.
GLOMARK is launched by Softlogic Supermarkets (Pvt.) Ltd, a subsidiary of Softlogic Retail PLC, under parent Softlogic Holding PLC. Softlogic has over 100 international brands marketed through one of the country’s strongest distribution channels.
The officials of Softlogic Supermarkets (Pvt.) Ltd noted that GLOMARK would fill the gap in the local market with the introduction of exotic international grocery items in their outlets while pointing out that Sri Lankan consumers had to compromise on certain speciality ingredients as they were not available in Sri Lanka.
Moreover, in enhancing the customer convenience, the GLOMARK shoppers would be assisted by the latest retail tech and specialist guides to ensure that customers find every single item on their shopping list.
Pathirage revealed that 10 more GLOMARK outlets are in the pipeline to be opened in Colombo and other leading cities including in Kottawa, Piliyandala and Kurunegala within the next eight months.
He noted that the upcoming outlets would include few fairly large sized outlets over 15,000 sq ft.
Softlogic has set the average size of Softlogic GLOMARK to be 15,000 sq ft, similar to the Delkanda GLOMARK outlet.
Reasoning the decision to launch the first Softlogic GLOMARK in Delkanda, Pathirage described Delkanda as a “very potential area”, given the high population density and easy access to other large population centres such as Kohuwala, Maharagma, Nugegogda and Kirulapone.
He emphasised that GLOMARK would not be focusing particular customer segments and would serve everybody.
Although GLOMARK currently is focusing on the retail aspect of the industry, Pathirage said the backward integration to source products is also on the cards in the future.
Sri Lanka’s modern retail trade sector has experienced a robust growth backed by the rising income levels, urbanisation and changing lifestyles.
Sri Lanka’s supermarket space is currently dominated by Cargills, Keells and the Richard Pieris group. A distant fourth player would be the supermarket chain operated by the Laugfs group.
The state also has a hand in the business with Sathosa stores, which focus on lowincome earning consumers.
Meanwhile, independent food retail chain, SPAR International, last year granted the licence to Ceylon Biscuits Limited—the manufacturer of Munchee biscuits—to operate the SPAR brand in Sri Lanka. SPAR Sri Lanka has announced plans to open 20 SPAR supermarkets within a five-year period.