Supermarket Mogul Kishore Biyani Reflects On Missed Chances, Future’s New Bets

Supermarket Mogul Kishore Biyani Reflects On Missed Chances, Future’s New Bets

SUMMARY

Future Group CEO says it was a mistake to add too many categories of business

It plans on adding 10K small stores in coming year

The group is set to bring Japan’s 7-Eleven to India

Retail business conglomerate, Future Group will now sell only food, fashion and home furnishing products, the company’s CEO Kishore Biyani on Tuesday (February 26) said.

“We have made mistakes. We got into so many categories of business. Now I have decided not to move out of food, fashion and home,” PTI reported, citing Biyani as saying at the Retail Leadership Summit.

While retail is Future Group’s core business activity, its subsidiaries are present in consumer, insurance, brand development, real-estate development, retail media and logistics.

The founder reiterated that the group has been betting big on data-driven commerce. In November 2017, the group launched the Retail 3.0 business model, called Tathaastu, which incorporates the best of both Retail 1.0 (brick and mortar stores) and Retail 2.0 (ecommerce).

In the 3.0 model, the group has integrated newer technologies, such as artificial intelligence (AI) and machine learning (ML), where data can be used to understand customers’ purchasing behaviour and also predict their needs. The conglomerate is said to have already implemented the technology for its Easy Day stores.

An earlier report suggests that the group plans on investing $68.8 Mn–$110.3 Mn to create a nationwide food supply chain network of refrigerated trucks. As part of the plan, the company would set up temperature-controlled distribution centres (DCs) to manage its entire food supply.

Future Group Bullish On Growth With Small Store Strategy

Further, Biyani has announced to add 10K small store outlets. The company which owns and operates brands such as BigBazar, Nilgiris, EasyDay, operates more than 1,400 stores across 409 cities at present.

“Our large stores make a lot of money and our small stores are not making money. We expect in the next two years they will start making money. We have profitability of large stores which funds our small stores right now,” he said.

Meanwhile, in line with its small store strategy, the group is reportedly bringing Japanese-owned convenience store chain — 7-Eleven — to India. The deal will be based on a revenue-sharing model, with technology sharing, for 70-80 years licensing arrangement.

Group’s retail chains like Easy Day, Heritage Retail, Nilgiri’s contribute about 15% to Future Group’s sales. The company clocked a revenue of $2.6 Bn (INR 18,478 Cr), according to its annual report 2017-18.

Note: We at Inc42 take our ethics very seriously. More information about it can be found here.

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
Unlock 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
Unlock 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

Supermarket Mogul Kishore Biyani Reflects On Missed Chances, Future’s New Bets-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

Supermarket Mogul Kishore Biyani Reflects On Missed Chances, Future’s New Bets-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

Supermarket Mogul Kishore Biyani Reflects On Missed Chances, Future’s New Bets-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

Supermarket Mogul Kishore Biyani Reflects On Missed Chances, Future’s New Bets-Inc42 Media
Supermarket Mogul Kishore Biyani Reflects On Missed Chances, Future’s New Bets-Inc42 Media
You’re in Good company