Thursday, April 05, 2007

Bharti plans to use a three-tier model for retail

Bharti has been studying the local market and has decided to have small convenience stores less than 2 from consumers homes. This three tier format contrasts with it's partner Bharti Retail and Wal-Mart will be starting their retail operations using a three-tier model. Bhartikms from consumer’s homes, mid-level stores within 2-3 kms, and hypermarkets within 5-7 kmsWal-Mart’s model in the US where it’s stores are located in the suburbs of the city. According to Vinod Sawhney, Bharti Retail president and CEO, “In India, our studies have shown we require a multi-format store structure, and for large store formats we have to consider the challenges posed by our poor infrastructure. The distance has to be convenient for customers to go to the store.”

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