Big Retail betting on gourmet food to up sales

Retailer's sales might not be sizzling but Hypercity mall is hoping that its new format can help change this. Gourmet City recently opened in Mumbai and there are plans to open 10-12 such stores. The company has invested about Rs 2 crore in the Mumbai store, and offers food from all over the world. But the focus is on the live kitchen ‑ be it brewing fresh tea from a global selection to cooking and serving fresh continental snacks and sushi.

Andrew Levermore, CEO, Hypercity, said, "We have seen sales of imported food stuffs go up from 0.5% of our business to 6%, There was rapid growth in demand from Indian consumer. This represents products that literally come from all over the world."

Hypercity isn't alone; Big Bazaar too is hopping on the fresh food skillet.

Future Group, which recently opened its 101^st  Big Bazaar, said many more of its stores will see gourmet sections and live kitchens in its efforts to connect with more customers. The company says its stores are seeing a surge in sales, or about 4-5%, in stores where they have live kitchens. In many places it has tied up with local NGOs for cooking and serving fresh meals and local delicacies. It also plans to source products from group companies.

Sadashiv Nayak, CEO, Food Bazaar, said, "We are surely going to have service counters across stores. But there could be many places serviced through a centralized kitchen. We have set up centralized kitchens in 3-4 cities and are also open to sourcing food products from a group company like Blue Foods."

Hypercity may be targeting the big money spenders. Big Bazaar is targeting the average Indian with offers like paanch ka swad and Power of 10, thereby offering a range of products at Rs 5 and Rs 10. But clearly the mantra is eat more and shop more.