-By Tadasha Shukla &
Avni Dagar
As much as we’ve loved accompanying our parents to the next-door kirana shop in the hopes that they buy us that chocolate– the world has come a long way since then. Shopping habits have changed, the hustle culture has taken over and people much prefer everything they need under one roof. And that’s where hypermarkets save the day.
Hypermarkets are large retail establishments which offer a one-stop shopping experience. Groceries, electronics, apparel, household items– all at one place. Modern retail accounts for 8% of the $500 billion Indian retail market of which the hypermarket industry in 2010 was valued at $37 billion dollars with bright prospects in the future. The credit for the growth of this concept goes to rise in disposable income, urbanisation and shifting consumer preferences to organised retail formats.
The first hypermarket belonged to Spencers’ Retail in Hyderabad in the year 2000 and as its popularity grew, they are now the owners to over 35 hypermarkets across the country– paving the way for other players such as Big Bazaar, D-Mart, Spars and such to enter the race.
In the 1990s the Indian economy liberalised, which opened doors for foreign retailers to enter the Indian market and they also brought with them their concepts and practices of large format stores, supermarkets and hypermarkets which in-turn gave birth to the organized retail sector growth in India. Before liberalization of the economy in the early 1990s India’s retail landscape was dominated by traditional street markets, corner shops/ mom-and-pop stores and local bazaars. These small retailers were where most consumers would source their products from and organized retail was almost nonexistent.

In the 2000s shopping malls started springing up across major cities in India. Malls offered a mixed pot of international and domestic brands along with entertainment & multiplexes. Malls changed the Indian shopping experience altogether where this was a one stop destination for leisure as well now. But in spite of modern trade coming into existence there were not many takers initially first due to pocket pinch.
But wait, super? hyper? Tomayto-tomahto, right? Well, not quite.
Supermarkets are your go-to neighbourhood stores, perfect for frequent grocery runs. Grab some milk, bread, noodles (because what will you cook at 2 am), some veggies– basically everyday essentials. Hypermarkets are like those overachieving elder siblings, they got it all. They are built in massive spaces as they’re not limited to your day-to-day items. They provide value for cheaper products as a result of their economies of large scale which reduces their per unit cost, providing value for money. To sum it up:
Supermarkets: Convenient and smaller which focus on groceries and everyday essentials
Hypermarkets: Larger and more comprehensive– clothes, groceries, electronics, etc, all at one place.
Vishal MegaMart– a name heard by the few, primarily thrives in smaller cities across the country and lays low in tier-1 cities. The company is currently valued at $6 billion and recently announced their IPO (Initial Public Offerings) on 10th December, 2024– successfully raising $942 million
This company focuses on aspirational retail. Along with selling household items and groceries, it also offers apparels. They sell the same trendy styles showcased by influencers at a much cheaper price and bridge that gap in-between someone’s FOMO and that look being recreated (without breaking the bank) They showcased strong financial growth between FY22-FY24, as their revenue increased from ₹5,600 crores to ₹8,900 crores with a growth rate of 13.57% in 2024. With an EBITDA margin of 14% and a network of 624 stores nationwide– Vishal MegaMart has emerged as a strong player in this segment of hypermarkets.

The scenario surrounding the development and future prospects of hypermarkets in the country cannot get any better as the middle-class boom, urbanization, and evolving trends in shopping shift the tide of the market in their direction. The expanding middle class in India has a thirst for more convenience and variety, making hypermarkets potentially more successful in this untapped and lucrative market. There is an unmatched growth in the number of hypermarkets in urban areas. Furthermore, as modernized retail outlets readily penetrate Tier II and III City Grade customer’s spending power development, they become a focus on the map.
To become successful, retailers will have to upskill and make an effective digital base and a very robust and agile supply string distribution network. Those who can quickly adapt and strategically reorient themselves to change will be able-bodied to survive and generate satisfying profits and will remain in patronage in the tenacious run
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