Big Bazaar, the largest retail chain of Future Group, is eyeing a turnover of Rs 8,000 crore by the next financial year.
The company hopes to achieve this mark by mutliplying the number of stores and implementing cost-cutting measures.
Speaking on the sidelines of Images Fashion Forum in Mumbai, Kishore Biyani, CEO, Future Group, said, “We want to introduce new value culture, manage operating costs better and boost profitability of Big Bazaar. Hence, we have hived off the business. However, to fund our expansion, we are not looking at listing Big Bazaar.”
Recently, Pantaloon Retail, the group’s listed entity, decided to hive off four business divisions, including Big Bazaar and Food Bazaar, into separate companies.
The company is now looking at openining a total of 300 Big Bazaar stores and has introduced the neighbourhood concept of retail, opening stores in residential areas. It will also introduce new business segments such as health and wellness in its stores.
Biyani further stated that Big Bazaar would focus on ‘kanjussi culture’, a term he used to explain the company’s focus on identifying areas to cut costs.
“The organisation has adopted a new philosophy “garv se kaho hum kanjus hain,” he said, explaining the idea.
The concept focuses on cutting intermediate layers and passing the benefit to customers. Big Bazaar is estimated to end this financial year with a turnover of Rs 4,000 crore and expects to double it over the next year.
The company was also looking to create more buying occasions, he said. For example, on Republic Day, Big Bazaar achieved a sales of Rs 240 crore compared with Rs 150 crore in the previous year.
“There is a need to drive consumption by creating newer buying occasions because traditional festivals can no longer remain the sole purchase drivers,” he said.
Three years ago Big Bazaar introduced discount sales on the Republic Day, which was well received by the country’s youth. For instance, this year, Big Bazaar sold 1,38,000 pairs of jeans and 38,000 cell phones during the Republic Day offer.