Croma to fashion new outlets on 'neighbourhood' stores format

Tata-run Croma stores, which sells electronic goods, is running a pilot to test the 'neighbourhood' stores concept in New Delhi, reports The Hindu Business Line.

The 'neighbourhood' stores in New Delhi are smaller stores, measuring about 1200 sqft and have a different assortment and design, as compared to the big Croma stores.

The concept of the 'neighbourhood' stores is to step up presence in smaller markets and cater to leisure shoppers in the neighbourhood.

The concept comes as a strategic shift for the firm where they will be able to concentrate more on their stronger markets, and slip deeper into the smaller markets. Since there is no cost in the inter-state trade post the Goods and Services Tax regime, Croma will be able to make a larger impact in the smaller markets.

Gujarat and Maharashtra are among the strong markets for the company. With their 100 stores, Croma is competing with Reliance Digital on a national level and also with regional electronic retailers such as Vijay Sales, etc.

However, not only is Croma competing with the major brick-and-mortar stores but also with the major e-retailers.

“More than the offline players, it is online players such as Paytm, which pose challenges for us at the moment,” Croma Chief Marketing Officer Ritesh Ghosal told the Business Line.
The firm set up their own online platform and have removed their presence from e-retailers such as Flipkart and Snapdeal.

Croma is already running similar outlets of this concept in airports. These stores carry the 'Zip' brand name. The retailer is planning to do away with this brand name and incorporate only the 'neighbourhood' stores concept. Currently, there are about 8 operational 'Zip' stores.

“We are not extending the branding for Zip and it will be replaced with a new name which is being developed in house. Even the airport stores under Zip will now sport a new name. A US-based design company (Chute Gerdeman) is already on the job of designing the new format that we are currently piloting at Green Park Market in New Delhi,” Croma Chief Marketing Officer Ritesh Ghosal said.