Hypermarkets are large retail stores that combine groceries and general merchandise. They offer a one-stop shopping experience under one roof. The first modern hypermarket was opened in France in the 1960s. In India, hypermarkets are expected to grow significantly in the coming years. However, they also face challenges in India such as low margins, competition from local stores, and consumer preferences. Compact hypermarkets, which are smaller in size, have emerged as an effective format in India to compete with local stores while providing a modern retail experience.

1. Hyperma
rket
Prepared By-Aditya,

2. What is a 'Hypermarket‘
• A retail store that combines a department store and a grocery
supermarket.
• Often a vary large establishment, hypermarkets offer a large variety of
products such as appliances, clothing, groceries & FMCG Products.
• The term hypermarket (French: hyper Marché) was
coined in 1968 by French trade expert Jacques
Pictet
• Hypermarkets offer shoppers a one-stop shopping
experience. The idea behind this big box store is to
provide consumers with all the goods they require,
under one roof.
• Some of the more popular hypermarkets include the
Wal-Mart ,Supercenter, Fred Meyer and Super Kmart.

3. The first suburban one-stop shopping center was opened in 1931 in the
Hollywood District of Portland, Oregon. The store's innovations included
a grocery store alongside a drugstore plus off-street parking and an
automobile lubrication and oil service. In 1933, men's and women's wear
was added, and automotive department, housewares, and other nonfood
products followed in succeeding years.
In the mid 1930s, Fred Meyer opened a central bakery, a candy kitchen,
an ice cream plant, and a photo-finishing plant, which supplied the
company's stores in Portland and neighbouring cities with house brands
such as Vita Bee bread, Hocus Pocus desserts, and Fifth Avenue
candies. By the 1950s, Fred Meyer began opening stores that were
45,000 sq ft (4,200 m2) to 70,000 sq ft (6,500 m2), and the 1960s saw
the first modern-sized Fred Meyer hypermarkets
HISTO
RY

4. Location
Because of their large footprints, many hypermarkets choose suburban or
out-of-town locations that are easily accessible by automobile. Based on
their consumer availability & accessibility to the market easily they are
located inside the city or outside the city.

5. Size
The average Walmart Supercenter covers around 179,000 square feet
(16,600 m2), with the largest ones covering 260,000 sq ft (24,000 m2).A
typical Carrefour hypermarket still covers 10,000 m2 (110,000 sq ft), while
European trend in the 2000s has rather turned towards smaller
3,000 to 5,000 m2 (32,000 to 54,000 sq ft). In France, INSEE defines
hypermarkets (French: hypermarché/s) as non-specialized markets with a
minimum size of 2,500 m2 (27,000 sq ft).
Business Models
Hypermarkets, like other big-box stores, typically have business models
focusing on high-volume, low-margin sales.

6. Across the countries
In France, hypermarkets are generally situated in shopping centers
(French: centre commercial or centre d'achats) outside of cities, though
some are present in the city center. They are surrounded by extensive car
parking facilities, and generally by other specialized superstores that sell
clothing, sports gear, automotive items, etc.
In Japan, hypermarkets may be found in urban areas as well as less
populated areas. The Japanese government encourages hypermarket
installations, as mutual investment by financial stocks are a common way
to run hypermarkets. Japanese hypermarkets may contain restaurants

7. Advantages
1. To consumer: great shopping experience with quality and quantity.
2. To reatailer: economies of sale increases to wide range of products.
disadvantages.
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1. To consumer: increasing cost according to wide variety of products.
2. to consumer: transportation problem if located in outskirts.

8. Challenges
Despite its success, the hypermarket business model may be under threat
from on-line shopping and the shift towards customization according to
analysts like Sanjeev Sanyal, Deutsche Bank's Global Strategist. Sanyal has
also argued that some developing countries such as India may even skip the
hypermarket stage and directly go online

9. Hypermarket: Indian
Context

10. • The size and share of hypermarket in Indian retail is expected to increase in the
coming years, in the presence of strong macroeconomic performance,
availability of excellent retail space, encouraging consumption pattern due to
growing personal disposable income, speedy development ofTier II and III cities,
and recent entry of big industrial houses into retailing with focus on large store
formats.
• According to Northbridge Capital report, 30% of the new investment in retail is
expected to be in the hypermarkets. By 2015, it would be the largest retail
segment, accounting for more than 21 per cent of total retail space and will be
worth $1,011 billion by 2017. In the mall space breakup
in India, hypermarkets come out to be the largest retail segment, accounting for
21 per cent of the total retail space
HYPERMARKETS IN INDIA

11. LEADING HYPERMARKET CHAINS IN INDIA
Source :Compiled from official websites of retail companies
N.B.-First International Hypermarket of India is Hypercity on 1st May 2006 in
Mumbai

12. CHALLENGES FACED BY HYPERMARKETS IN INDIA
Internal Factors:
1.Retail margin is very less for FMCG Products.
2.Lack of historical data
3.Wrong merchandising mix
4.Lack of depth in local Assortment
5.Wrong location
6.Price point misalignment
7.Paucity of skilled manpower
8.Inefficiet Marketing Spends
External Factors:
1.Saturation
2.Competition with kirana stores
3.Diverse taste and preferences
4.High cost of real states
5.Buying behavior

13. MEASURES FOR THE SUCCESS OF HYPERMARKETS IN INDIA
1.Mass Selling & Private labels
2.Buying Process
3.Store management & Operations
4.Designing of brands & private labels
5.Supply Chain Management
6.Communication
7.Right size & Right Merchandising
• R(Revenue)=NoB (No. of Bills)*ABV(Average Bill Value)
=NOB*{No.of items per bill*Average value per item}
• To increase Revenue, the hypermarket has to increase the NoB (i.e. more
people shopping) and the ABV (each shopper spends more)
REVENUE OF A HYPERMARKET

14. HYPERMARKETS IN INDIA SELLS
PRODUCT LIKE:Electronic goods, Groceries, Vegetables and fruits, House hold items,
Stationaries Pharmaceuticals and health care products Consumer durables,
Vegetables, Dress materials, Furniture, Furnishings etc
Source:http://business.mapsofindia.com/india-retail-
industry/formats/hypermarkets.html#sthash.f8WSe30Z.dpuf
• Delhi
• Noida
• Gurgaon
• Hyderabad
• Bangalore
• Ahmedabad
• Chandigarh
Hypermarkets in India - the first choice places

15. In India the middle ground between kiranas and the hypermarket a new term
came over in the mind is ‘COMAPCT HYPERMARKET". According to
A.T.Kerney analysis suggests that organized retail that use that follow
smaller format can tap into the India’s significant urban retail opportunities.
The compact hypermarket are of right size from 4000sq.ft to 6000sq.ft,they
offer amentias of hypermarket but are smaller and easy to navigate 7 they
can compete head to head with the kiranas.
WHY COMPACT HYPERMARKET SUCCED WHEN NEIGHBOUR STORES
FAILED?
-Urban customer want a consistent supply of goods near to their homes.
Neighborhood stores can not consistent the supply of goods from food to
kitchen & kitchen to household items. While people in modern cities want the
modern retail facility but according to a research it is proved that they are not
COMPACT HYPERMARKET

16. • One stop shop brings higher margin.
• Create lasting consumer relationships.
• Manage overhead costs
• Customized promotion & Merchandising
ADVANTAGE OF COMAPCT HYPERMARKET
DISADVANTAGE OF COMAPCT HYPERMARKET

17. STORE PLANOGRAM
A planogram is a diagram that shows how and where specific retail
products should be placed on retail shelves or displays in order to increase
customer purchases. Planogramming is a skill used in merchandising and
retail space planning.

20. Example of outside city: Outside the city location of D-Mart, InTirupati

21. Example of Comact Hypermarket: Inside the
city location of BigBazar, In
Beliaghata,Kolkata

22. REFERENCES
1.Bailay, R. 2013. Reliance Retail to turn hypermarkets into wholesale stores,
kirana
shops. The Economic Times, [Online]. December 30. Available at:
http://articles.economictimes.indiatimes.com/2013-12-
30/news/45711403_1_reliance-mart-
reliance-retail-cash-and-carry-format. [Assessed 22 March 2015 ]
2.Hypermarket - Wikipedia, the free encyclopaedia. 2015. Available
at:https://en.wikipedia.org/wiki/Hypermarket. [Accessed 03 June 2015].
Jain, S. 2011. The Truth vs Hype of Big Retail. NDTV, [Online]. December 21.
at:
http://www.ndtv.com/india-news/the-truth-vs-hype-of-big-retail-567275.
22 March
2015
3.Sharma,A.Bharadwaj,P(2015). HYPERMARKETS: GROWTH AND CHALLENGES
PERSPECTIVE IN INDIA. Asia pacific journal of marketing &
4.Business Maps of India.(N.D.).Maps Of India’s website Retrieved from
http://business.mapsofindia.com/india-retail-
5.Kearney,A.T(2011).The Case For Compact Hypermarkets in India.,6-11
6.Redseer.(2015).Building Sustainability In Indian HyperMarket,2-5