Breaking away from the traditional business models of retailing, Indian retailers are increasingly focusing on how to survive the slowdown as well as boost their bottom lines.
Trent was the first tocome out with franchisee model for their super format store – Westside. Vishal Retail has taken a step further and is all set to open a whopping 60 number of franchisee stores within the next few months. Vishal will manage the backend distribution and logistics for the franchisee and both will operate on a revenue sharing model.
Vishal management is also relocating under performing stores. Mr. Khemka, President of Vishal Retail said,
So far, our outlets were on the company-owned company-operated model but now it would be a 100% franchise-based one. This is being done to cut costs. We have plans to resize 25 shops. We have also started the 3H concept of “Health, Hygiene and Hunger” wherein we would provide healthy food to consumers in our shop-in-shop model outlets.
Besides this, the grat news is Vishal is getting into Liquor retailing through a shop-in-shop format at Goa, Shimla, Mumbai and Kangra.