After the Future group and Shoppers’ Stop, it is now the turn of the Tatas to enter airport retailing.
The Tatas’ consumer durable chain, Croma, in technical alliance with Australian retail major Woolworths has set up its first consumer durable and electronic retail store at Mumbai airport’s domestic terminal. The 850-sqft store is branded as Croma Zip and sells everything from toys to laptops.
“In the next three months, we expect a 25 per cent conversion rate from the large number of passengers who pass through this terminal. We are looking for opportunities to set up more such stores at airports in India,” said Ajit Joshi, CEO, Infinity Retail Ltd. Infinity Retail manages five Croma stores, including the Croma Zip store.
“We manage to source products at competitive rates due to a technical pact with Woolworths. Product prices at the airport store match those available at the Croma stores,” said Joshi.
Around 7,000-8,000 passengers pass through the Mumbai airport terminal in a day, according to aviation industry estimates.
The entry of the Tatas into airport retailing signals the fact that India is also finally warming up to a global shopping culture. Retailers are capitalising on the increasing traffic at airports. According to aviation industry estimates, passenger traffic at the Mumbai airport is rising by 20 per cent a year to touch 40 million by 2012-13.
That is why global retailers are partnering the domestic retail firms. Nuance from Switzerland and UK’s Alpha Retail have tied up with Shoppers’ Stop and the Future group, respectively, for airport retailing in India.