Crossroads presentation


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Crossroads Retailing Lessons Analysis for Logistics Management and retail management

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Crossroads presentation

  1. 1. Crossroad’s Retailing Lessons
  2. 2. Case Facts
  3. 3. Shoppertainment <ul><li>Crossroads “Shoppertainment” concept </li></ul><ul><li>Situated near Haji Ali, South Mumbai spreading across 1,50,000 sq. ft. </li></ul><ul><li>Launched by Piramal Enterprises in September 1999 </li></ul><ul><li>Food courts, Recreation Facilities, Large parking facility </li></ul><ul><li>Four levels </li></ul><ul><li>Offering Jewelry and children’s goods, gifts and women’s wear, houseware; and men’s wear </li></ul>
  4. 4. Consultancy and Surveys
  5. 5. Outlets and Products Outlets Products Pyramids Department Store Household Products Fountainhead Books Celebrations Greeting cards and gifts JJ Valaya Ritu Beri Rohit Bal Designer wear
  6. 6. <ul><li>Entertainment </li></ul><ul><li>Jammin ( Covered 3 floors) </li></ul><ul><li>Simulation games, bumper cars, pool tables and a bowling alley </li></ul><ul><li>Also, works of cartoonist Mario Miranda were displayed, along with a Piano bar. </li></ul><ul><li>Restaurant named China Garden </li></ul><ul><li>Food </li></ul><ul><li>Six types of cuisines including Indian, Lebanese, Chinese, Italian and others </li></ul><ul><li>Mcdonald’s also had an outlet here. </li></ul>
  7. 7. Problems on Launch <ul><li>Estimated footfalls - 10,000. </li></ul><ul><li>Actual footfalls- 30 to 40 thousand average. This figure would rise to 1,00,000 on weekends and on holidays </li></ul><ul><li>Infrastructure came under immense pressure </li></ul><ul><li>Escalator queues were long , the aisles were crowded </li></ul><ul><li>Moreover, these crowds didn’t comprise the post target segment. </li></ul>
  8. 8. Management’s Action <ul><li>The management decided to restrict the entry on weekends to control the crowds. </li></ul><ul><li>Moreover a notice was placed stating that one had to produce </li></ul><ul><li>a credit card, </li></ul><ul><li>cell phone, </li></ul><ul><li>visiting card, </li></ul><ul><li>a student ID card to gain entry. </li></ul><ul><li>Or they had to pay Rs.60 as entry fee (refundable against purchases at any time) </li></ul>
  9. 9. Customer’s Reaction
  10. 10. Ban Lifted
  11. 11. Tenants Situations
  12. 12. Fountainhead <ul><li>Traffic dependent. More of impulse purchases so they needed footfalls </li></ul><ul><li>Needed at least 1000 walk-ins everyday but there were days it just got 100. </li></ul><ul><li>Problems with the mall's layout. They were situated on the 4 th floor </li></ul><ul><li>People hardly went up till the fourth floor just to browse through. The store would have been better at the entrance or on the first floor </li></ul><ul><li>Monthly sales fell to just 12-15 lakhs and thus they opted out of Crossroads </li></ul><ul><li>Other tenants also started demanding lower rentals </li></ul>
  13. 13. Successful Tenants <ul><li>McDonald’s and Pantaloons were the most happy. </li></ul><ul><li>Mcdonald’s sold around 8000 meals a day. </li></ul><ul><li>It was seen that drawing traffic would lie with the mall management </li></ul><ul><li>But the relationship between management and the tenants went bad. </li></ul><ul><li>The tenants believed that Piramals were more interested in promoting their in-house store Pyramids, than the mall as a whole </li></ul><ul><li>The tenants started regarding themselves as stand-alone entities. </li></ul>
  14. 14. Threats <ul><li>Piramals planned to close down the entertainment center and use the space for selling saris and footwear. </li></ul><ul><li>Dual threat of Loss of Tenants and Falling traffic. </li></ul><ul><li>Also with new malls developing in Mumbai, the situation as Crossroads was unlikely to get any better </li></ul>
  15. 15. Future Plans <ul><li>They wanted to establish themselves as a destination store so they, </li></ul><ul><li>Initiated a multi-storied extension with 20000 sq. ft retail space and a car park </li></ul><ul><li>Crossroads E Zone : In collaboration with L&T (including Cineplex, Health Club, Food courts and a shopping plaza) </li></ul><ul><li>Expansion in other parts of the city and the country. </li></ul><ul><li>At these new outlets they were planning to offer a new mix of products like computers, footwear and saris which was not available at Crossroads. </li></ul>
  16. 16. Discussion
  17. 17. Problems faced by Crossroads <ul><li>External </li></ul><ul><ul><li>Competition </li></ul></ul><ul><ul><li>Location of store </li></ul></ul><ul><li>Internal </li></ul><ul><ul><li>Management- Tenants Clash </li></ul></ul><ul><ul><li>Conversion Ratio Vs Footfall </li></ul></ul><ul><ul><li>Variation in types of outlets </li></ul></ul><ul><ul><li>Location of store inside the mall </li></ul></ul><ul><ul><li>Layout </li></ul></ul><ul><ul><li>In-house store (opportunity) </li></ul></ul>
  18. 18. Shoppertainment: Why did it fail
  19. 19. Restricting Entry <ul><li>A very strong and apparent cue to all the customers: What about the TA? Could their be any other means of segregating non profitable footfall? </li></ul><ul><li>Lobby & Store Ambience and location are subtle cues that could be used </li></ul>
  20. 20. Shifting Targets and segments: Dilution of Brand <ul><li>Might drive away the TA </li></ul><ul><li>Tenant Mix is very crucial </li></ul><ul><li>Management issues </li></ul><ul><li>Tangibles and ambience of the place/store/mall are designed accordingly </li></ul><ul><li>Branded House could be an option </li></ul>
  21. 21. Thank You