Sohel Parvez
![A woman shops for household products in a supermarket in Dhaka. The capital will see another 29 supermarkets this year. A woman shops for household products in a supermarket in Dhaka. The capital will see another 29 supermarkets this year.](http://www.news.org.bd/wp-content/uploads/2009/03/supermarkets-to-spread-out.jpg)
Supermarket biggies have attempted a massive expansion drive this year to catch up more shoppers who still depend on unorganised wet markets to buy their essentials.
The rise in supermarkets, according to analysts, will diversify consumer choices and boost consumer spending needed for economic growth, while the wet markets will also witness an improvement in quality and services on increased penetration of supermarkets.
According to operators, 29 more chain retail outlets are expected to come up this year in an attempt to rope in more customers.
Major expansion drive has been taken by one of the leading local conglomerates, ACI. Its concern ACI Logistics is poised to open 17 outlets in the months to May under the brand name of ‘Fresh N’ Near’.
Meena Bazar is set to add five outlets this year to its existing eight, while Rahimafrooz Superstores will add four, and Nandan Mega Shop three in the same year.
“We feel that customers are ready because of changes in their lifestyle, preferences and needs. We want to offer a neighbourhood experience to consumers by opening more outlets,” said a senior official of ACI Ltd, requesting anonymity.
ACI, which made debut in chain supermarket business in mid-last year, has already opened three outlets, thanks to the enterprising spirit of a few big business houses that pioneered in bringing dynamism in the once-overlooked retailing of perishable and fast moving consumer goods.
Local businesses are set to expand branches at a time when some foreign investors such as Bangkok-based retail and hospitality group CENTEL wants to enter the segment.
But a decade ago, the trade was in the hands of thousands of small retailers in the wet markets and grocery shops in cities and remained out of the focus of business conglomerates.
The landscape began to change after 2000 as Rahimafrooz Superstores, operating company of Agora, began to catch up a slice of retailing and wholesale trade, which has been growing annually by more than 6 percent on an average and contributing over 13 percent to GDP since 1999-2000 fiscal year.
In the last eight years, many small and big supermarkets made debut in the trade to attract middle and upper middle class consumers, a section of whom are shifting to the chain stores from the wet or kitchen markets.
Now around 50 chain supermarkets are operating in Bangladesh, recording an annual turnover of around Tk700 crore, according to Bangladesh Supermarket Owners Association.
“Consumer confidence is increasing and that’s why many are planning expansion,” said Kazi Inam Ahmed, chief executive of Meena Bazar, a concern of Gemcon Group that operates through eight outlets with six in Dhaka.
Inam said five more outlets would be opened this year. “The whole business is based on volume. The more is the sales volume, the more is the possibility of making profit,” he said.
Supermarket operators said a rise in the organised retailing would offer consumers hygienic foods at competitive prices compared to those of unorganised retailers in the kitchen markets where commodities are sold mostly in unhygienic manner.
“It’s a business to connect consumers with better products and prices, and create a market for local manufacturers,” said Inam.
Mahmud Ur Rahman Shakeb of Nandan Mega Shop said the company plans to open three more stores this year to increase the number to six.
“It’s a good sign. Expansion of outlets will boost consumer confidence and help create market for manufacturers,” said Niaz Rahim, managing director of Rahimafrooz Superstores, which has now four Agora branded stores.
“Once the supermarket culture is established, commodity market prices will see stability,” he said.
Syed Ferhat Anwar, who teaches marketing at Institute of Business Administration at Dhaka University, said a rise in supermarkets would give consumers more choices and allow them to choose independently.
“It will increase consumption and help boost economy,” he said, “But the question is if the market is going to be saturated for too much increase in the number of supermarkets.”
Ferhat however said organised retail shops might lead to an improvement in quality and services in the wet markets.
Courtesy of www.thedailystar.net