1. CASE STUDY ON
RETAIL STORE ANALYTICS
COURSE: MKTA
TEAM MEMBERS
▷ D22017 – P Gowtham Kumar
▷ D22019 – I Harshitha
▷ D22021 – K Adi Yogesh
▷ D22025 – M Uma
▷ D22033 – G Poojitha
▷ D22041 – R Sai Sasi Sekhar
▷ D22049 – B Vinay Kumar
2. CAUSE OF DOWNFALL OF BIG BAZAAR…….???
2
IS RELIANCE TAKING RISK …..???
3. ▷ 2000+ stores spread across India with multiple stores in same city.
3
▷ Consolidate the stores based on scenarios 1,2 and 3.
PROBLEM STATEMENT
Retail Store (RELIANCE FRESH)
Scenario 1
▷ Are there certain stores
in any localities that
should be shut down?
Scenario 2
▷ Are there certain stores that
should be moved/shifted
from the current location?
Scenario 3
▷ Are there localities
where new stores are
to be started?
4. Are there certain stores which should be shut down ?
4
Scenario 1
Sales Metrics
• Foot Fall of Customers
• Sales per employee
• Conversion Rate
• Sales(Revenue), Gross &
Net Profit
• Average order value
• Basket size
• Year-on-Year growth
Inventory Metrics
• Inventory turnover
• Sell through rate
• Shrinkage
• GMROI
Customer Metrics
• Customer Behavior
• Retention
• Foot Traffic
Other Metrics
• Discounts
• Lease
• Outlet overheads
• Locality
• Competitors
• Impact of e-commerce
5. Scenario 2
Are there certain stores that should be moved/shifted from
the current location?
5
• Sales per sq ft - Expansion and reorganization / better layout of stores. Consolidating
stores (Due to more space than they really need) / (if you have surplus space that you are
not going to fill)
• Same-store sales
• Area/Locality - Accessibility
• Logistics
• Cash Flow
• Lowering operational costs (Land lease Rent)
• Striving to attract new customers /markets
6. Scenario 3
Are there scenarios where new stores to be started ?
6
• Catering high demand.
• Tapping new potential communities.
• Expanding the business to other tier cities, towns, and villages.
• By using Demand forecasting which allows you to estimate our store’s sales and revenue
for a specific period in the future. Which helps us in the expansion of our retail chain.
• customer feedback.
• insights from experts.
• economic trends.
• opinions and predictions of your sales force.
7. 7
Spread of Reliance
Fresh Stores across
India.
▷ The analysis is aligned in a
way that the different
case scenarios are
considered across various
tiers of locations
8. CLOSED
Reliance Fresh
CLOSED
Reliance Fresh
• In this case, the figure’s blue shaded area
indicates the location of two pre-existing
Reliance Fresh stores.
• Both of the stores were closed in the span
of 6 months during the period Oct-2021 to
Mar-2022.
• Critical factors lead to shutdown:
1. Opening of new stores in the same
vicinity of the existing Reliance Fresh
stores by the competitors – D Mart,
Ratnadeep.
2. Impact of e-commerce after the
post-covid period. (Change in
Customer purchasing behavior)
HYDERABAD – TS(METRO)
Scenario – Store Shut down
9. PREVIOUS
Store
NEW Store
• In this case, the figure’s blue shaded area
indicates the location of pre-existing
Reliance Fresh store in the City area marked
as Previous Store.
• Factors leading to the Relocation of the
Store
1. Tapping the new potential community
where there is no existing store.
2. Relocation of the store from the
previous area to the new area, is
attributed to an increase in the land
lease rates due to capital development.
VISAKHAPATNAM – AP (CITY)
Scenario – Store Relocation
10. NEW Store
~ 6 Months
NEW Store
~ 4 Months
Under
Construction
~ 3Years
1st Store ~ 9 - 10
Years
CHITTOOR – AP (TOWN)
Scenario – New Store
• In this case, the figure shows the expansion
of stores in all directions to the town, for the
sake of convenience to the public in the
surrounding areas.
• Factors leading to the opening of the new
store,
1. Extension of business toward rural
communities from the town.
2. The decision to open new stores in the
surroundings as well as inside the town
was reinforced by the footfall and high
demand.
11. NEW Store
• In this case, the figure’s blue shaded area
indicates the location of the rural area where
there is no presence of a reliance market.
• Factors leading to the opening of the new
store,
PRODDATUR – AP (RURAL)
Scenario – New Store
1. Extension of business toward rural
communities.
2. The nearest reliance store to the village
is about 45kms(@Kadapa).
3. The decision to open a new store was
reinforced by the customer survey.
4. Due to the 3 capital proposals from the
government, the population in rural
area's neighbor is increasing rapidly.
12. 12
INFERENCES FROM THE STUDY
In order for the retail chain to operate successfully, the Consolidation of 3 scenarios we discussed so far to in
cooperating effectively
1. We take a combination of sales, inventory, and customer metrics along with Demand forecasting for an
overall overview of the Functioning of a given store.
2. Evaluation of the performance of the stores at frequent intervals gives the scope for identifying challenges
3. The number of operating outlets should be optimal considering the factors like the excessive expansion of
new outlets without evaluating the economic viability.
4. Especially in the current post covid scenario, with the penetration of e-commerce into Grocery and Domestic
daily products physical store footfalls have massively decreased over the years
5. Decision-making should be done considering all the factors about your product offering, inventory, staffing,
Marketing, and Investments. Without these, you’re at risk of making costly mistakes.