Our team has choose the
layout of Smart Bazaar,
Smart Bazaar, formerly Big Bazaar, is an Indian retail chain of hypermarkets, discount
department stores, and grocery stores. The retail chain was founded by Kishore
Biyani under his parent organisation Future Group,[3] which is known for having a
significant prominence in Indian retail and fashion sectors. Big Bazaar is also the parent
chain of Food Bazaar, Fashion at Big Bazaar[4] (abbreviated as fbb) and eZone where at
locations it houses all under one roof, while it is sister chain of retail outlets like Brand
Factory, Home Town, Central, eZone, etc.
Founded in 2001,[5] Big Bazaar is one of the oldest[6] and largest hypermarket chains[7][8] of
India, housing about 300+ stores in over 120 cities and towns across the country. [9] In
February 2022, Reliance Industries took control of over 200 Future group stores and
rebranded Big Bazaar as Reliance's Smart Bazaar Stores.[10]
History[edit]
Big Bazaar was founded in 2001 by Kishore Biyani, the founder and chief executive
officer (CEO) of the parent company, the Future Group.
The former captain of Indian cricket team, Mahendra Singh Dhoni have previously
endorsed for the fashion vertical of Big Bazaar.
Acquisition[edit]
In 2020, Big Bazaar was acquired by Reliance Retail, the retail division of the Reliance
Industries, as part of a ₹24,713 crore ($3.36 billion) sale transaction of Future Group.
However, the deal was called off on 23 April 2022 after FRL's creditors voted against
going forward with it.[11][12] Reliance Retail launched its new retail format by the name of
Reliance Smart Bazaar, that cater to consumer needs. It offers online and offline
services to the customer. Online shopping services can be availed using
the JioMart platform.
One problem that I found while visiting the smart bazaar in its layout is
Merchandising Stocking Challenge
I found that many of the items are out-of-stock
Stocking and restocking merchandise efficiently is crucial for any retail business, including Smart
Bazaar, to maintain customer satisfaction, maximize sales, and minimize costs. Several challenges
may arise in this process
1. Inaccurate Demand Forecasting: One of the primary challenges in merchandise
stocking is accurately predicting customer demand. Many times smart bazaar
underestimates demand for a particular item, it may lead to out-of-stock situations,
disappointing customers and potentially losing sales. Conversely, overestimating
demand can result in excess inventory, tying up capital and storage space.
Example: Smart Bazaar expected a surge in demand for winter coats due to a weather
forecast predicting a harsh winter. However, the winter turned out to be milder than
expected, leading to an oversupply of coats and a shortage of space for more seasonally
appropriate items.
2. Supply Chain Disruptions: Disruptions in the supply chain, such as delays in
manufacturing, transportation issues, or unexpected events like natural disasters or
labor strikes, can impact the timely delivery of merchandise to the store.
Example: Smart Bazaar's primary supplier faced a labor strike at their manufacturing
facility, resulting in delays in the production and delivery of popular items. As a result,
the store experienced out-of-stock situations and lost potential sales.
3. Inefficient Replenishment Processes: Inefficient replenishment processes within the
store, such as manual ordering or inadequate communication between departments,
can lead to delays in restocking merchandise.
Example: Smart Bazaar relies on manual inventory counts to determine when to reorder
merchandise. However, due to human error or delays in updating inventory records, the
store fails to restock popular items promptly, resulting in dissatisfied customers and lost
sales opportunities.
4. Poor Inventory Management: Poor inventory management practices, such as
inadequate storage space, improper SKU organization, or lack of visibility into stock
levels, can hinder the efficient stocking and replenishment of merchandise.
Example: Smart Bazaar stores its inventory in a disorganized manner, making it difficult
for staff to locate specific items quickly. This results in delays in restocking shelves and
leads to customers leaving the store empty-handed.
5. Seasonal Variations and Trends: Anticipating seasonal variations and staying abreast
of changing consumer trends is essential for effective merchandise stocking. Failure to
adapt to shifts in consumer preferences or anticipate seasonal demand can result in
excess inventory or out-of-stock situations.
Example: Smart Bazaar fails to anticipate the popularity of a new fashion trend during
the summer season, resulting in a shortage of trendy items and missed sales
opportunities.
To address these challenges, Smart Bazaar can implement several strategies:
Invest in advanced inventory management systems that utilize data analytics and
machine learning algorithms to improve demand forecasting accuracy.
Diversify its supplier base to mitigate risks associated with supply chain
disruptions.
Implement automated replenishment systems that trigger orders based on
predefined inventory thresholds.
Optimize store layout and storage space to streamline stocking and retrieval
processes.
Stay agile and responsive to changing consumer preferences by closely
monitoring market trends and adjusting inventory accordingly.
By addressing these challenges and implementing effective strategies, Smart Bazaar can
improve its stocking and restocking processes, minimize out-of-stock situations, and
enhance customer satisfaction and profitability.
