Young shoppers, online investments to help Big Bazaar retain position as leading grocery retailer in India, says GlobalData

Big Bazaar is the most popular retailer in India with close to 59% of all Indian consumers choosing to shop from it for their food and grocery needs. Reportedly, more than 55% of its shoppers are below 34 years of age. Additionally, it has a strong brand recall and a dependable customer base and its online investments lately have significantly helped the retailer for its omnichannel expansion, finds GlobalData, a leading data and analytics company. 

GlobalData’s latest report, ‘Big Bazaar, India (Food and Grocery) Shoppers Profile, Market Share and Competitive Positioning’, reveals Big Bazaar’s mass-market positioning allows it to be affordable for consumers of all income groups, but the retailer has its highest proportion (27.1%) of shoppers from household incomes above INR750,000 (US$10,000). With an aim to increase its customer retention and loyalty, the retailer created ‘Big Bazaar Profit Club’ membership, which provides special discounts and offers to its members. 

Koyel Ray, retail znalyst at GlobalData, comments: “Big Bazaar’s store operations were heavily impacted in 2020 as the COVID-19 pandemic coupled with frequent lockdowns caused the closure of shopping malls and store locations where the retailer operated. The retailer had to close 21 stores but added 8 new stores to cut down non-strategic costs and improve operating efficiency. After the second wave of COVID-19, lockdowns were eased and vaccination programs considerably reduced infection rates, helping the retailer to recover. 

“Big Bazaar heavy investment in digital capabilities helped it expand online proposition and provide attractive services such as ‘two-hour’ delivery in over 120 cities and towns across India. The investments paid off as the retailer witnessed a boost in online sales with a contribution of nearly 10% of total sales in 2021 compared to only 1.4% in 2020.” 

According to GlobalData Q3 Consumer Survey, 28% of respondents mentioned that they are buying grocery products online more frequently and 33% continue this habit showing that online has become crucial for growth in the region.

Ray concludes: “To this end, the brand is now focusing a considerable portion of its marketing activities on the digital space. Further, Big Bazaar’s parent company Future Retail initiated merger with Reliance Retail. This was seen as a positive move and fresh investments from Reliance coupled with the brand’s existing image as a trusted retailer were expected to help it recover and strengthen its position as one of the leading grocery retailers in India. However, With Reliance calling off the deal in late April 2022, the future takes a slight dent, however youth population and the online investments will aid the Future Group to flourish.”