Tata Group’s Infiniti Retail, which runs the nationwide retail chain Croma brand, is looking to strengthen focus in the top 25 cities which presently contribute about 50% of its revenues. In the pipeline are plans to add about 10 stores in FY15, even as it ramps up its same-day delivery plan from 16 cities now to over 25 next month.
“At present, Croma’s e-commerce website offers the same-day delivery in about 16 cities which will be ramped up to over by 25 next month. The new stores too will be added in the top 25 cities,” said a senior Croma executive on condition of anonymity.
“Though still in single digits, the online store is clocking R2.35 crore per week in revenues. The online medium works as an additional channel and is already operationally profitable now,” the executive said, adding the Croma brand on the whole is not profitable yet. He refused to give a timeline for achieving overall profitability.
Just like its competitors Ezone, and Reliance Digital, Croma is following the omni-channel approach wherein it is building its online and physical presence both.
Croma recently shut down five stores and has 97 operational stores at present. In April, it opened a 13,000 sq ft store in Mumbai’s Prabhadevi, a departure from the recent strategy to open smaller stores in the 7,500-9,000 sq ft.
“By and large the industry passed through rough times in FY14. Though in the last 4-5 weeks customers are back and shopping, indicating the market could climb back soon,” he said.