Retail chain to close down 40 out of its 43 stores in and around Mumbai.
Foodland Fresh, a chain of retail outlets promoted by Raju Shete, is closing down all its unprofitable stores across Mumbai and its suburbs as a pilot venture found the stores falling short of expectations on many key parameters, said an official.
Foodland had 43 stores in and around Mumbai and has decided to retain only three of its profitable stores. It has either closed or is in the process of closing them down, and has put notices in many of its stores saying it is closing down.
Food and grocery retailers are struggling with their business models with many like Subhiksha are under severe strain, while others are shutting down their stores to contain losses. They have been bogged down by high rents, waste and theft, and competition from mom and pop stores who understand customers better.
“Our learning through the pilot venture is that in food and grocery, organised retail is still finding its feet while the unorganised sector seems to be doing well till now,” said Ivan Rodrigues, vice-president, marketing & formats, Radhakrishna Foodland.