Tier 2/3 towns have been growing at a faster pace for organised retail chains and this has been yet again demonstrated with the launch of the 100th store for Star Localmart, a leading Food & Grocery retail chain.
With the launch of its first store at Kohapur, Maharashtra in 2020, the company has been growing leaps and bounds, bridging the gap between traditional kirana shops and supermarkets. The company offers over 3,000 SKUs across its stores which are spread over 1,000 – 2,000 sq. ft.
Shrenik Ghodawat, Managing Director, Sanjay Ghodawat Group, stated: “Reaching our 100th store is a milestone that reflects our unwavering commitment to transforming India’s retail ecosystem.
Our vision has always been to make modern retail accessible to tier III and IV towns, ensuring that rural consumers receive the same quality, value for money, and variety as their urban counterparts.
We aim to scale to 3,000 stores by 2030, creating over 25,000 employment opportunities, strengthening local supply chains, and empowering micro-entrepreneurs through franchise opportunities.
As we expand our footprint in modern retail, we are also accelerating our presence in the automated retail segment.
With a vision to establish 10,000 vending machines over the next five years, we are leveraging technology to enhance consumer convenience and accessibility.
This strategic expansion aligns with our mission to innovate retail experiences while catering to the evolving shopping habits of Indian consumers.”
Beyond Maharashtra, the company has scaled across Karnataka to reach this milestone of 100 stores.
Typically, the company has been focussing on smaller towns such as Sangli, Ichalkaranji, Ratnagiri, Belagavi, Bagalkot, etc. catering to the aspirations of India’s rural consumers.
The company operates COCO – Company Owned Company operated as well as COFO – Company Owned Franchise operated models across its ecosystem.
Editor’s Note
Tier 2/3/4 towns in India are nothing but a pot of gold for retailers and brands – from fashion to FMCG, grocery retail to specialty products retail.
With rising incomes and growing aspirations in ‘Bharat’ aka semi-urban India, coupled with higher disposable incomes, discerning consumers prefer to shop in air-conditioned stores and also prefer privacy and self-service.
Fashion Retail and Grocery Retail have taken off better than other modern retail categories in smaller towns.
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