Hyderabad based retail chain, Heritage Fresh that presently has about 2.3 lakh square feet of trading space, is planning to increase it to 6 lakh square feet in the next 3 years. Expansion plans are set within the existing three cities of Hyderabad, Bangalore and Chennai. (Its presence is relatively lesser in Bangalore). As per the company’s plans, New Heritage MART format 15,000 square feet stores will be launched in the next two quarters.
Jagadish Krishnan, COO Retail and Bakery Divisions, Heritage Foods Ltd, informs, “We are looking at adding about one lakh square feet of trading space every year with properties between 6,000 to 10,000 square feet, though on a case to case basis. We are open to evaluate stores smaller or a bit larger than this. We start by assessing the potential property in terms of planogram feasibility and overall suitability. A specific catchment attractiveness study is carried out over a 2-3 km radius to assess the strength and profile of the catchment. A competition profiling tells us the degree and strength of competition. Based on these inputs a financial feasibility report is drawn to take a decision.”
Heritage Fresh clocked a turnover of Rs 7 cr in FY 2006-7 and in FY 2012-13, it registered a turnover of Rs 327 cr. The retail chain’s operations and warehouses are spread across Hyderabad, Bangalore and Chennai. Its cumulative warehouse area covers 1.4 lakh square feet, and stocks about 6,000 SKUs and 7 days of inventory.
