Star Bazaar to reduce store sizes

After announcing a joint venture with the world’s third largest retailer Tesco, hypermarket chain Star

Bazaar plans to reduce sizes of its stores from 40,000-80,000 square feet to 20,000-30,000 square feet, to keep costs under control and achieve profitability. The first Star Bazaar was launched in 2004 but the company is yet to book profits. In FY13, the chain registered a net loss of Rs 72 crores on net sales of Rs 785 crores.

Sources say the company would focus on launching new stores in Karnataka and Maharashtra this year, keeping in mind that the Trent-Tesco joint venture is looking at operating stores in these two states. The firm is looking to open three neighbourhood convenience stores under the ‘Star Daily’ brand this year. The 2,000-3,000 square feet stores are modelled on the Tesco Express in the UK that sells fresh foods, groceries and essential items. The company is also said to be exploring new format called ‘Star Market’.

Under the joint venture, Tesco will trade in products under 14 categories, including textiles, footwear among others. Trent Hypermarket will operate stores under banners, including Star Bazaar, Star Daily, Star Market with tag line stating 'A Tata and Tesco Enterprise'. Tesco already has presence in Mumbai, Bangalore, Ahmedabad and Chennai through the JV.