Select City Walk (Tarun)

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Transcript of Select City Walk (Tarun)

REPORT ON MALL MANAGEMENT OF SELECT CITY WALK

SUBMITTED BY TARUN BATRA (PG 20101316)

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OBJECTIVES OF FIELD TRIP The field trip was an integral part of Retail Selling Management Course. The field trip was arranged in Select City Walk, Saket. The trip was mainly associated with Session12 (Selling through malls and Mall Management). This field trip has been developed keeping in mind the following goals: 1) To acquire knowledge and concepts of the organised retail marketing 2) To understand the Retail location and leasing strategies. 3) To equip with requisite techniques and skill sets to understand how to function in retail set up. 4) To familiarize with the central decision variables of organised retail marketing specially, for malls. 5) To develop skills in relation to the various attributes which have created success stories in organised retail industry especially for malls. 6) To learn about retail promotions and building store loyalty. 7) To know the elements of Store Layouts and Atmospherics. The making of this report is based on the learning through the RSM concepts like Zoning, Facility management, Finance, Marketing, Promotions etc.

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INTRODUCTION TO RETAIL SECTOR IN INDIA The retail sector is among the fastest growing industry in India in the last couple of years. The retail sector of India comprises of:a) Organized Retail b) Unorganized Retail Unorganized retailing consists of small and medium grocery store, medicine stores, subzi mandi, kirana stores, Paan-Beedi shops etc. 90% of retailing in India falls under the category of Unorganized Retail. Organized Retail is operational mainly in the major cities of India. Hence, there is a huge potential for retail to grow in India. Organized retail in India is expected to grow 25-30 per cent yearly. Organized retail mostly consists of malls, hypermarkets, like big brands such as Big Bazaar, Star Bazaar and anchor/departmental stores like Westside, Pantaloons or Shoppers Stop. The total retail sales in India will grow from US$ 395.96 billion in 2011 to US$ 785.12 billion by 2015, according to the BMI India Retail report for the third quarter of 2011. With over 100 malls operating in India and more than 300 being developed, the opportunities offered in the retail landscape are immense. Mall space is expected to touch 60 million square feet by end-2008. With such a huge supply of space, mall owners and developers in India need to focus on vision, scalability and processes and create a distinct proposition for themselves in the market. The emergence of specialty malls is a step in this direction. Retailers today face many challenges, including increasing competitive pressures, thin margins, high occupancy costs and unpredictable supply base that come in the way of their attaining operational efficiency and profitability. As organized retail grows, the market will only become more competitive and developers will have to work hard to differentiate. Faulty mall management along with inappropriate tenant mix would lead to poor mall traffic and closure of individual stores in malls. Professional third party mall management service providers are hence likely to come to the fore. They not only understand these business challenges, but also have the ability to help retailers effectively deal with them.

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Generally there are two types of consumers who visit malls: A) Focused buyers B) Impulse buyers. The time spent by focused buyers inside the mall is relatively lower as compared with impulse buyers who spend a lot of time window shopping. Malls which have entertainment zones and/ or promotional activities have larger foot falls and more percentage of impulse buyers. Mall management becomes critical to attract impulse buyers. For e.g. Ansal Plaza in Delhi has ensured its success through good promotional events and mall management practices since its inception in 1999. Its amphitheatre which is dedicated to promotional activities has ensured footfalls despite newer malls coming up in the NCR region. Contrary to popular misconception that mall management is synonymous with facility management, mall management actually takes care of the issues like:

a) b) c) d) e)

Positioning zoning (tenant mix and placement within mall) Promotions and marketing Facility management (infrastructure, footfalls, ambience) Finance management

KEY GROWTH DRIVERS IN THE INDUSTRY y y Demographics- approximately 60% of Indian population is below the age of 30. Double incomes- there is a rise in spending power of Indian families due to double incomes in the family i.e. more than one person is earning. y Plastic revolution- the use of credit cards and debit cards has increased immensely for the purchase of apparels, consumer durable goods, food and grocery as well. y Urbanisation- increased in urbanization has led to higher consumer density area which enables the retailers to use less number of stores to target a large number of customers.

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Ease of commuting- with increase in the penetration of automobiles and an overall improvement in the transportation facilities, covering distances has become easier and convenient which allows the customers to travel a long distance to reach a particular store.

Key Players in Indian Retail Sector y Pantaloon Retail (India) - When Pantaloon started the Big Bazaar discount stores in 2002, malls were not part of the shopping culture. Big Bazaar became a hit, as it combined the look and feel of Indian bazaars with aspects of modern retail like choice, convenience and quality. Headquartered in Mumbai, the Rs 3,500-crore company now operates over 5 million sq ft across 40 cities. y Shoppers Stop- A menswear store owned by K Raheja in the Mumbai suburb of Andheri in 1991 has now transformed into Shoppers Stop, with 27 departmental stores. The company entered airport retailing in a joint venture with the Nuance Group. y Lifestyle- Growing from one store in Bahrain in 1973, the NRI-led Landmark Group today operates over 5 million sq ft in the Middle East and India. The groups first Lifestyle store in India opened in Chennai in 1999. Now it has 325,000 sq ft in Chennai, Hyderabad, Bangalore, Gurgaon and Mumbai. Its first hypermarket, branded as Max, is expected to open soon. y Reliance Retail- Mukesh Ambanis 15,000-people Reliance Retail has opened 250 convenience stores, branded as Fresh, across the southern states. It is now planning to launch 30 such outlets in Mumbai. Reliance Retail plans to invest Rs 25,000 crore on hypermarkets, supermarkets and specialty stores in the next four years. The first hypermarket will be up in Ahmedabad by the end of July. y Aditya Birla Retail- The company, which will operate under the brand More, has selected two formats hypermarkets and supermarkets for its initial foray. The first store has opened in Pune. Last January, the company acquired Trinethra Super Retail, which has given it more than 5,00,000 sq ft and a strong presence in the South. The Birlas outlay for the business over the next three years is Rs 9,000 crore.

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Bharti Retail- The worlds largest retailer Wal-Mart, which prefers to go it alone outside the US, chose Sunil Mittals Bharti Enterprises as its partner in India. The venture will start with the cash & carry (wholesale) format, which could be extended to retail operations once foreign direct investment is allowed in multi-brand retail, as is expected. The entity is yet to start operations as the formal agreement has not been inked.

SELECT CITY WALK OVERVIEW Select City Walk is a premier shopping mall located in the Saket District Centre, in Saket, New Delhi. Retail development is spread over 6 acres and includes a multiplex (PVR CINEMAS), serviced apartments, offices and public spaces. The mall was developed by Select Infrastructure, a joint venture between the Select group and the Aarone group. It is currently the most expensive mall in Delhi, with rentals rates between Rs 650-Rs 750 per sq ft per month. It opened to the public in October 2007. Select city Walk is ISO 9001:2008 (QMS), ISO 14001:2004 (EMS), OHSAS 18001:2007 Certified Shopping

Location:Select City Walk is located in the Saket District Centre, in one of the upcoming middle class neighbourhood of Saket in South Delhi. It is the first large-scale shopping mall to open in south Delhi and is the first of four major malls that are planned for the Saket District Centre. The other neighbouring malls include the MGF Metropolitan Mall and the DLF Palace.

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Features: The mall is divided into three broad zones: 1) Staple Traditional (family) 2) Celebration (centre-stage) 3) High Voltage (youth). There are eight anchor tenants including Good earth Verandah, Pantaloons, Crossword Bookstore, Mother care, Arcelia, and Home Stop. The mall also has 125 stores representing over 500 major Indian and international brands of clothes and apparels. The Mall has a 10,000 sq ft. Multi-cuisine food court, Food Talk, on the second floor, along with several restaurants including The Coffee Bean & Tea Leaf, Pizza Hut, and KFC. It also has Pantaloon Retail's first Gourmet Food Bazaar, which stocks Indian and imported food products. The mall also houses a PVR Cinemas multiplex, which comprises six screens including 2 gold classes and has a total seating capacity of 1,235.

There is also an Open Plaza Sanskriti, for art festivals, fairs, exhibitions, performances, and al fresco dining. The plaza is landscaped extensively in timber, water, stone and steel and has an openair amphitheatre, along with trees and Water features.

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Structure of the Mall The mall has been built in L-shape and in such a way that there is proper utilization of space. There are 3 entry and exit gates for the customers which makes the crowdingin and crowding-out an easy. There is a separate entry gate for the