TECHNOLOGY IN RETAIL-PART II

Andrew Levermore, chief executive officer, Hypercity, delves some more on the “technology in retail” paradigm in the context of his organisation's experience.

Hypercity is part of K Raheja Group, which has retail interests with its two existing chains, Shoppers' Stop (department store) and Crossword (bookstore). Hypercity was launched in Malad, Mumbai, in May 2006 as an approximately 120,000 square feet “true” hypermarket.

Hypercity offers a wide and contemporary range of products sourced from local as well as international markets. The product range includes food, homeware, home entertainment, hi-tech, appliances, furniture, clothing, sports and toys. The company is planning to open 28 Hypercity outlets across India, with one to be operational by this year-end. It is also reported that Hypercity may roll out some 300 smaller grocery stores in more than 50 cities by 2010. These will be called Express City.

What have been the three most important benefits of technology adoption in your operations?

  » Speed of customer checkout
  » Sales data
  » Inventory data

To what extent has technology adoption helped improve productivity and lower costs?

Technology does not improve productivity or lower costs until you have reached an optimum size relative to the investment. Early investment is not profitable in my experience. It is expensive and often creates more work and user input than a simple manual system.

Do you think you are using technology optimally? Specifically, have your supply chain and merchandise control mechanism been benefited?

We will not optimise our investment until we have grown by at least another 10 stores.

Have your forecasting mechanism improved due to better and reliable technology integration?

While we own the most sophisticated retail forecasting software available, human intelligence and a merchant mentality are never far away. It is this which will separate great retailers from average ones – not technology.