Grofers launches offline stores, ties up with Oyo Rooms to set up tuck shops

In a shift from its core strategy, online grocery firm Grofers has set up around 15 offline outlets across Delhi-NCR, according to people privy to the development.

The company has launched two types of offline outlets -- tuck shops and franchise stores. It has tied-up with start-ups across Delhi NCR such as Oyo Rooms to place tuck shops in their office premises which will serve low ticket items like snacks and soft drinks.

The franchise stores have been set up near multiple residential areas in Gurgaon. These stores will offer fresh produce and dairy products to meet the everyday needs of the residents.

According to the people quoted above, as the shops are under a franchise model, the capital requirement to open such stores will be low.

However, there isn't any clarity if Grofers plans to expand this segment in a large manner to emerge as a potential competitor to the likes of BigBazaar and Spencer's.

"It is just in a pilot stage. These are just for brand reinforcement," said one of the officials quoted above.

"Instant gratification of employees could be satisfied through these stores. Thus, the tuck shops are also a value add for corporates and their employees," he added.

Recently, there were reports of merger talks between Grofers and rival Big Basket. But, in an interaction with Moneycontrol last month, BigBasket's founder Hari Menon categorically denied that the company had no plans to merge with Grofers.

This is not Grofers' first encounter with the offline segment.

The company that produces its private label products under the brand Freshbury and Best Value also sells them through multiple retail outlets.

Grofers currently claims to be getting 11000-12000 orders from the online segment on a daily basis with an average ticket size of Rs 1,000.

Last year, the company suspended operations in nine cities. It has now relaunched those cities and plans to expand to 70 cities.

The company had given pink slips to many staffers last year and was rumoured to be on the brink of a closure. But, it has managed bounced back and expanded to about 25 cities.

Resource: http://www.moneycontrol.com

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