Flying High on Wings of Ambition

Regional supermarket numero uno Ratnadeep to cross 100 stores this year and 200 over the next 3 years.

Sanjay Kumar of Progressive Grocer conferred with the top management deck of the Hyderabad-based supermarket chain on how it has taken up the cudgels against the Covid pandemic and worked around the challenges of the lockdown to make its products and services easily and safely accessible to its customer base by introducing out-of-the box solutions and innovations in terms of its private label and merchandising strategy, which has helped it to grow its business even during these tough times and also given it the fodder to expand its wings ambitiously in the months and years ahead.

Retail Pvt. Ltd embarked on its food and grocery supermarket journey 33 years ago – in 1987 – when it opened its first store in the city of Hyderabad. With a storied legacy to fall back on, and which is continually being burnished further, Ratnadeep has now become the most awarded supermarket chain in the State of Telangana and among the most credentialled regional supermarket chains in India.

“Currently, we have a retail footprint spanning over 3,00,000 square feet across 68 stores operating in Hyderabad, Secundrabad, and Bangalore. We are not just a next-door neighbourhood store that is there to satisfy the daily needs of customers. We are more than that and as a food and grocery retailer, all our strategies revolve around our loyal customer base. We are first and foremost known for providing quality products and delightful customer experience,” asserts Sandeep Agarwal, Managing

Director, pointing to the retailer’s mission even in these difficult times of the coronavirus, which is to make its products easily accessible to all customers and even push to expand its store count further to 70 as shortly as possible.

He adds that the supermarket chain has achieved tremendous growth and has set various benchmarks since its inception in 1987. “But at the end of the day, we always question ourselves – how does a loyal Ratnadeep customer relate himself/ herself to the brand – and on where are we right now and what’s the road ahead.”

According to Manish Bhartiya, Director, despite facing the ongoing Covid-19 related and the lockdown induced challenges such as those of adequate stock availability, non-availability of skilled workforce, disrupted logistics and supply chain issues, non-operation of manufacturing units and the uncertainty around the question of which stores to keep operational, etc, the supermarket chain resorted to some out-of-the-box solutions and innovations to get around the hurdles.

“With logistics totally disrupted, we had to directly pick up branded material from the suppliers’ end. We preferred to directly pick-up fresh fruits and vegetables to ensure that only lush, green and best vegetables made it to our stores in such difficult times. The production cycle of our private label products (mainly staples) had to be increased manifold times and the production time was extended to the night shift for ensuring a continuous supply,” he says.

In order to ensure consistent availability of products, Ratnadeep stretched its back-end facility by extending the time duration of its grocery packing unit, which was dovetailed into the night shift as well. “At the same time, in keeping with the constantly evolving customer buying behaviour, and with the crisis getting further protracted and in the face of continued quarantined living, we are also working on many innovative lines to match the customer expectations. Currently, we are serving the customers through our hyper-local format and through tie-ups with delivery start-ups like Swiggy and Dunzo. We are also chalking out plans to go for a full-fledged omni channel strategy in times to come,” adds Manish Bhartiya.

When asked to enunciate on its private label strategy for the current Covid-stricken times, Yash Agarwal, Director, says: “This crisis has a long way to go but we have a clear understanding and vision to cater to customer interests and demands. This year we have entered to two big categories – chakki atta and honey – which has served us well during the ongoing crisis. We have seen a fabulous response from the customers. With chakki atta, we have got a 13% market share in the atta category with a 35% share in the 5 kg segment in less than two months. In honey, we have captured a 23% market share in the category. Enthused by this overwhelming response to our recently launched private label products, we are going to launch our own bread product in another week, and have plans to introduce more categories with quite a few already are in pipeline.”

Ask Ratnadeep’s youngest Director Mitesh Bhartiya about his experience of food and grocery retailing in a Covid-panic-ridden world, and he says: “We have a learnt a lot from the ongoing Covid crisis. It has taught us how to lead things in difficult times by thinking out of the box. It has also made us realize that there is nothing called a 'problem’, which is just the absence of an idea to find a matching solution.” He further adds: “We have seen the customer behaviour pattern undergoing a major change due to the pandemic. And being part of the ‘essentials’ business, it was mandatory for us to respond and adapt to the crisis at the earliest. From witnessing a surge in panic buying and increased basket size at the beginning of the pandemic to observing the purchase of mostly shelf-stable products that help to restrict frequent shopping trips, it was quite evident how people were prepping up to make their quarantined lives safe and comfortable behind closed doors.”

As any top F&G retailer will aver, the food category (staples, packed and ready-to-eat food) had to push its supply to meet the excessive demand. “In fact, through the ongoing Covid-19 challenges, we have learnt a lot and we have been introduced to new ways of thinking and fresh thoughts with some of them being really eye openers. For instance, we have also introduced many new brands during this difficult time, even though we have had to procure stocks from out of the State and our regular sourcing regions during this time … and this fact alone has been able to boost our team’s ability and confidence in themselves,” states Yash Agarwal.

Then, there has been another set of challenges by way of strict adherence to the standards of hygiene and sanitization of products within the shop. To its credit, Ratnadeep made it the top priority and an absolute imperative to ensure the safety of its customers and employees. “To maintain those extra layers of hygiene, we made hand sanitisation mandatory for every customer and employee. Even though our card machines were being disinfected regularly, we encouraged people to go for cashless transaction,” informs Sandeep Agarwal.

All Ratnadeep stores took extra care in maintaining regular sanitisation of all touchable points like floors, racks, shelves, shopping baskets and trolleys. “We have followed all government norms very scrupulously and without any comprise. To ensure that people maintain social distancing, we have allowed only a specific number of people to shop at any given point in time. For our cooperative customers waiting for their shopping chance in a queue, we have standing spots that are positioned six feet apart from each other. We know the pain of waiting in a queue, and to mitigate that, we’ve set up tents to help our customers escape and avoid the prickly summer heat of the season; also we’re serving water for those waiting in the queue,” added Sandeep Agarwal.

To continue retaining its sterling reputation in the market, and prove its leadership over the distribution of food and grocery products, even once the current crisis finally blows over, Ratnadeep feels that in today’s crowded and competitive retail world, it is important for every retailer to define how it wants to be known as. “Without any value-based system, it is not possible for any brand to survive in tough and challenging situations. Even though we have tie-up possibilities to enable us make a better reach in the market, in the end, it is the right kind of customer value-mapping that ensures whether a brand becomes a go-to brand for any customer,” believes Manish Bhartiya.

Referring to Ratnadeep’s foundational values and its business DNA, Sandeep Agarwal says: “The three pillars of Quality, Variety and Savings have defined and shaped our business and corporate philosophy, and these qualities have helped us earn a loyal clientele. By ensuring that our stores are well stocked, we are able to maintain the three pillars of Quality, Variety and Savings, besides serving a loyal clientele that trusts us with their eyes closed and shops with us with their arms open.”

Ratnadeep stores attract on average 750 shoppers who spend about Rs. 500-700 on a typical standard family-sized transaction. “We value our customer’s time as much as their money. All Ratnadeep stores enjoy a premiere and convenient locational advantage. We are strategically placed at a location wherein it’s easy for a customer to conveniently visit and shop. The size of the store is also optimum, which again ensures that the customer doesn’t get tired while shopping with us. We love to go an extra mile by proving our customers with spacious parking, valet parking and clean surrounding for that perfect shopping experience,” says Yash Agarwal.

Talking of Ratnadeep’s product assortment and merchandise, Mitesh Bhartiya reveals: “The assortment is our biggest USP with each Ratnadeep store offering the best quality and mix of groceries from leading National and International FMCG brands at affordable prices and with a wide range of options in pricing and pack sizes. From daily essentials like sugar and flour to high-quality products such as fruits & vegetables, our shelves are freshly stocked every day. At Ratnadeep, there is something for everyone in every form!”

In terms of customer-friendly features, Ratnadeep follows a fluid strategy based on shopper behaviour and their expectations. “Ratnadeep is known for offering a wide choice of products, clean shop display and layout, ample aisles space, customer-friendly planogram, clear category signages, quick check outs, efficient associates’ service, among other attributes. Coming to merchandising and display, we have the expertise and a highly qualified team that continuously works around Category Management,” says Yash Agarwal.

He adds: “Category Management is an art of arranging sections inline as per the shopper buying behaviour. We continue to analyse and observe shopper buying behaviour and take insights out of it for implementing on the floor level. In recent past, we have implemented a couple of category adjacencies (utility based). For example, in the noodle category, we have placed forks; in the tea/ coffee section, we have placed mugs; in the detergent powders section, we have placed cloth clips.... among other product adjacencies.”

As one of the most promising and reputable retail brands, Ratnadeep leaves no stone unturned to ensure that its suppliers stick to quality standards and efficiency norms. “Supplier quality is a supplier’s ability to deliver goods that will satisfy the requirements of our end customers. In our organization, supplier quality management is defined as the system in which supplier quality is managed by using a proactive and collaborative approach. It’s in an organization’s best interest to ensure that the suppliers are providing the highest quality products while also conforming to preestablished requirements. This is often accomplished using Supplier Quality Management System (QMS), which allow us to monitor supply chains and inspect or audit materials at regular intervals,” discloses Manish Bhartiya.

Elaborating further on the importance of maintaining supplier efficiency, he adds: “In our organization, supplier quality management begins early in the product requirement and supplier selection process. It continues through the entire life cycle of a product and for the duration of the relationship with that particular supplier. Proper supplier quality management tactics include taking inputs and effectively and efficiently converting them to outputs deemed valuable by customers. Supplier performance and quality management go beyond securing a low purchase price or getting the best deal on bulk materials."

But no matter how much of improvements and innovations you build into your systems, there is always room for more because of the ever-evolving nature of the retail business. And that holds true for Ratnadeep as well, which is intent and earnest about lapping up the right opportunities in different formats in multiple cities. At the start of 2020, Ratnadeep ventured into a new store format – Ratnadeep Select – with the aim of catering to a larger clientele. “Ratnadeep Select is a large format store that offers superior store experience and a curated range of gourmet and international products. We intend to extend this format further into multiple geographies in the coming times.

On the strategic front, we are working to evaluate and evolve our brand while bridging the g aps in the consumer’s life by coming up with various formats for specific types of buying needs,” says Sandeep Agarwal.

Like every other great brand, Ratnadeep also needs to keep investing in planning and strategy to maintain its relevance and vitality in the market. “We have adapted and evolved with the changing times, keeping our customer’s needs as the centre of the universe. Right from arranging farm fresh products to skilfully handpicking what goes into our shelves, we have instilled a level of trust and confidence in our customers. Now, each of our stores offer the best quality of groceries and FMCG from leading national and international brands at affordable prices, affirms Sandeep Agarwal, adding that the chain is looking at expanding the brand across the country quickly.

“This fiscal year, we want to reach a benchmark of 100 stores. Over the next 3 years, we have plans to open 200 stores across the country. In the long run, we are also planning to open up stores in more new townships and communities to become an even more convenient destination for quicker shopping services,” he concludes.