Why Supermarkets Are on a Shopping Spree

PankajRenjhenPankaj Renjhen, Managing Director – Retail Services, JLL India

By Accommodation Times Bureau

The recent acquisition of the Hypercity brand by Kishore Biyani’s Future Group is one of the many instances highlighting a key ongoing trend in the retail industry – cross-category consolidation. Retailers are increasingly exiting businesses that drag down their profits and focusing on strengthening their core businesses to increase their market share and create value for their shareholders.

 

  • Earlier this year, online retail giant Alibaba picked up stakes in Chinese supermarket chains Hema and Bailan
  • Amazon bought out grocery chain Whole Foods for a whopping $13.7 billion
  • Last year, the world’s largest brick-and-mortar supermarket chain Walmart bought out US-based e-commerce company Jet.com for $3.3 billion
  • In India, Future Group acquired Hypercity for $107 million and effectively added around 1.4 million square feet of retail space to their existing 13.8 million square feet.

There is a visible change in the appetite of retailers, especially in the food and grocery business. So, why are supermarkets out shopping?

 





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