Retail giants like Reliance Retail, AV Birla Retail and RPG are rapidly signing properties for their convenience store format, which has emerged as the most popular format for retailers given the high returns per square foot of retail space. This despite the decline in the global percentage share of fruits and vegetables format from a whopping 60% to 52% in the last 10 years.
Reliance Retail has till date signed up 1,300 properties for its convenience store, Reliance Fresh at an average rate of Rs 80 per sq ft, with around 60 properties in Delhi and Mumbai at rates ranging from Rs 125 - Rs 300 per sq feet. AV Birla Retail in turn, has signed close to 30 properties for its recently launched 'More' stores in the Capital, while the RPG Group has signed around 60 properties in the NCR for its Spencer Fresh and Spencer's Daily at a rate of Rs 90-95 sq ft.
According to industry sources, Kishore Biyani-led Pantaloons, which at present is the country's largest retailer, would soon foray into the convenience store segment.
The size of these convenience stores varies across retailers.
While large retail chains like Reliance Retail, AV Birla and the RPG Group's stores start at 2,000 sq ft, the relatively smaller and regional chains like Big Apple which are targeting around 100 convenience stores by early next fiscal, have signed dozens of properties starting at 500 sq ft.
According to retail analysts, this is the most popular segment, despite the wafer thin margins because it services the hourly needs of customers and is the only retail format which can be opened in such a small area.
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