Kirana Stores Versus

Modern Retail Format

Maharishi Patel: 20PGDM214

Parth Bharadwaj: 20PGDM
Rishabh Tandon: 20PGDM227
Sagar Wajidkar: 20PGDM230
Ujjwal Trivedi: 20PGDM245
Modern FMCG Retail Store Analysis &
Procurement Structure
 Factors Small Modern Retail Store Mid Size Modern Retail Store Large Modern Retail Store

 ~120 Stores in India & 14 Stores in

Number of Branches Single Store 6 Stores
Lucknow

Locations Single Branch Spread across one city Spread Across the Country

Owner, Delivery Boys, Distributors,

Stakeholders Involved Companies and Distributors Companies, Distributors, Store Managers
Companies, Customer

Time to complete the

procurement process Daily (In few cases 1-2 days) Daily 1-2 Days
for perishable

Time to complete the

1-2 after the automatic intimation to the
procurement process 4-5 Days 4-5 Days after the stock gets low suppliers
for nonperishable
Modern FMCG Retail Store Analysis &
Procurement Structure (Contd.)
 Factors Small Modern Retail Store Mid Size Modern Retail Store Large Modern Retail Store
Apna Bazar
Stores Interviewed • Pappoo Stores • Spencer Retail
Shree Sava Super Mart

• Mixed Structure
• Procurement of regular demand
Procurement Single Store hence operated according to products orders are done centrally
• Non-Regular use products are ordered
management structure the store manager according to the demand in each store.
• Store Managers and customer demand
for a new products are also considered
• Digitally managed system
• Product Requirement is managed
centrally, and automatic intimation
goes to the supplier when inventory
gets below the certain level

Store manager or the owner has all the We decide in most cases what is needed
Store Manager's Say for the store by looking at the inventory No say, It is decided by the head office
say software and demands by the customers

POS Software Yes (EAZYPOS) Yes (Marg) Yes (

Average is 15- 17% goes as low as 6% and Overall store average for FMCG products
Margins Ranges from 10% to 30%
as high as 30% for some products is 24%
Around 10 days, 1 Month, Also depends on company and
Credit Time 25 Days
In some cases initial amount of bills in first 3 months
Average Area & of the Around 3000Sqft; Average 3000-3500 Sq. Approx. 15,000 Sq. ft. Average 10,000 Sq.
9,000 Sq. ft
Store Interviewed ft. ft.
Kirana Retail Store Analysis & Procurement
Structure

WIP
Questions Vinay General Store Mamta General Store

Who are the stakeholders involved in the procurement process? Wholesaler of the company Wholesale traders and company people

What is the approximate time (in months/days) for which you Depending on the requirement
procure the products for the store in case of Milk & Bread for around 2 days
Perishable products of around 15 days (milk, vegetables etc.) Other products range from 7 days to 1 month few products sell out We don’t keep milk & Bread so depending on the products we keep
Non Perishablle Products for a longer time stocks of atleast a week for most products

We deal with wholesale traders, small companies who deal in local

items papad, aata etc. and dealers and distributors and in some cases
Is there any 3rd party involved in the process? We deal with the distributor other bigger general stores too

Few cases the product comes the same day or next day, usually it
What is duration it takes for a product to reach the store once takes 1-3 days. During COVID it took them more than a week or 15
ordered? Few products arrive daily most products 1-3 days after we call them days to get some items

The owner manages the store, so they have complete control but, in
What say does the store manager has on the stocking of any some cases, distributor asks us to stock different company product
particular product? when a particular product is not available the Family runs the store, so we decide what to stock in our store

Questions Vinay General Store Mamta General Store

Stakeholders Involved Wholesaler of the company Wholesale traders and company people

What is the approximate time (in months/days) for which you Depending on the requirement
procure the products for the store in case of Milk & Bread for around 2 days
Perishable products of around 15 days (milk, vegetables etc.) Other products range from 7 days to 1 month few products sell out We don’t keep milk & Bread so depending on the products we keep
Non Perishablle Products for a longer time stocks of atleast a week for most products

We deal with wholesale traders, small companies who deal in local

items papad, aata etc. and dealers and distributors and in some cases
Is there any 3rd party involved in the process? We deal with the distributor other bigger general stores too
 Retail Value Channel Distribution for
Select FMCG Products
Store-Based Retailing   Non-Store Retailing  
Grocery Retailers   Non-Grocery Specialists   Mixed Retailers    
Other
Non-
Traditional Grocery Health and Beauty Specialist
Retail Value Modern Grocery Retailers     Grocery      
Retailers Retailers Non-retail
Specialist
Channel Direct E- channels (Hair Total
s Department Selling Commerce Salons)
Distribution Other Stores
Other Grocery Health
Beauty Chemists/
Convenien Forecourt Hypermar Supermark Independent Retailers (Ice and Outdoor
    Specialist Pharmacie      
ce Stores Retailers kets ets Small Grocers Cream Carts Beauty Markets
Retailers s
etc.) Specialist
retailers
Bath &
0.0% 0.0% 11.9% 7.9%   62.7%   2.6% 7.2% 0.0% 0.0%   1.6%   2.2% 3.8%     100%
Shower
Cosmetics 0.0% 0.0% 10.7% 8.1%   18.8%   7.9% 2.6% 0.0% 0.0%   30.3%   8.5% 13.1%     100%
Deodorants 1.6% 0.0% 9.4% 11.0%   24.9%   4.9% 12.4% 0.0% 0.0%   27.8%   2.2% 5.8%     100%
Hair Care 0.0% 0.0% 11.8% 11.3%   49.0%   1.5% 6.1% 0.2% 0.3%   10.0%   2.5% 3.2%   4.0% 100%
Oral Care 0.8% 0.0% 14.5% 9.8%   57.7%   0.0% 13.9% 0.0% 0.1%   0.0%   1.7% 1.7%     100%
Skin Care 1.7% 0.0% 10.8% 7.8%   27.8%   3.7% 15.1% 0.0% 1.0%   17.2%   11.4% 3.5%     100%
Dishwashing 2.3% 0.1% 8.8% 6.8%   78.7%   0.0% 0.0% 3.4% 0.0%   0.0%   0.0%       100%
Laundry
1.3% 0.3% 8.9% 7.1%   78.7%   0.0% 0.0% 3.5% 0.0%   0.0%   0.2%       100%
Care
Surface Care 1.5% 0.3% 13.4% 9.7%   53.8%   0.0% 0.0% 0.0% 13.8%   0.0%   5.9% 1.6%     100%
Toilet Care 1.2% 0.1% 8.3% 5.8%   53.8%   0.0% 0.0% 0.0% 29.2%   0.0%   0.3% 1.2%     100%
Coffee 1.5% 0.1% 7.1% 9.2%   73.1% 7.6%   0.0% 0.0% 0.0% 0.0%   0.0%   1.5%       100%
 WIP
WIP
• Wip
Thank You