We have given a boost to kirana units: METRO

Sales have surged by up to 50%: CEO

METRO Cash & Carry India, owned by multinational wholesale chain Metro AG, says it has championed the cause of kirana modernisation and digitalisation in India and subsequently, these exercises have led to a spike in kirana sales by up to 50%.

The German wholesaler currently has a client base of over 30 lakh businesses, 10 lakh kirana stores and several thousands of hoteliers and restaurant owners in India. Interestingly, over eight lakh of these kirana stores are under METRO’s smart programme, wherein they get assistance for expansion, refurbishing, modernisation and digitalisation.

Arvind Mediratta, CEO and MD, METRO Cash & Carry India told The Hindu that: “The remodelling and digitalisation of kiranas have resulted in a substantial spike in sales for them, up to 50%, and this has rekindled spirit and boosted the morale of thousands of kirana owners who were facing serious survival crisis in this country.’’

METRO is looking at kirana sector as a growth channel. It witnessed the space growing by 2.5 times, even when the entire SME space was doing its worst, just after GST introduction, he said.

“The big issue is market environment has changed. Survival has become the biggest challenge for most small stores. We advise them how to be smart, sell and be successful,” he said

METRO offers free advisory services such as what product to keep in the store, assortment, pricing, inventory management and even tips for cross sale promotion.

“Typically, a Kirana store keeps inventory for 60-65 days. Our job is to educate them about how to reduce the inventory. They have a METRO in the neighbourhood and they have our salesperson calling them every week and helping them with stock.”

As per Madiratna, in India or anywhere in the world big guys get facilities and advices easily on GST or any other things. When it comes to Kiranas they don’t have people to advise them on these issues.

“So, our focus has changed from selling to them to be a solution provider for them. Understand their peculiar business problems and give them total solutions. We found gaps in their assortment. They were not carrying organic and OTC products. They were not carrying frozen articles. We had to tell even a Kirana needs to have innovative pricing, as the world has moved away from selling at MRP.”

People nowadays prefer to shop in air conditioned stores with bright lights. METRO’s store remodelling programme helped Kiranas push the sales substantially in the first three months of the spruce up, the company claimed.

“We can remodel stores, fixtures and lighting, all in just 48 hours. But it requires money. So, we have been strongly lobbying with the government and putting pressure on banks to lend Kiranas under MUDRA scheme,” Mr. Mediratta added.

METRO Cash & Carry India currently has 27 stores across the country and another five more are expected to come up this year. It was in 2003, the wholesale brand forayed into the county and it took 15 years for it to turn around. In fiscal 2018-19 (October-September), the company posted revenues of ₹6,755 crore.

Source: Read Full Article