Mon, 16 May 2022 Today's Paper

Cargills to focus more on convenience stores as company upends retail strategy

8 June 2021 12:28 am - 0     - {{hitsCtrl.values.hits}}

A A A

Cargills (Ceylon) PLC says the company will focus more on the convenience store-style outlets going forward and spend more money in expanding its store footprint in that format, which the management thinks would provide more convenience to its customers while reducing per store capital expenditure. 


Cargills operates its retail outlets in four store formats: Cargills Food City Supermarkets, Cargills Express convenience stores, Cargills Food Hall gourmet flagship store and its newest e-commerce platform, Cargills Online. 


The group being the largest privately-owned retailer in the country operates over 450 physical stores islandwide. 

The management is of the belief that by expanding its convenience store-style outlets, it could penetrate the grocery market more effectively and thereby increase its market share.


“Through this approach, the management is confident of increasing convenience for the consumer while lowering the capital expenditure per store. The management is optimistic about increasing the market share and further penetrating the grocery market, which is currently estimated to be Rs.1,400 billion and growing,” the company said. 


Convenience stores, compared to other larger formats, offer limited parking space and a range of daily merchandise for relatively quick purchase by the consumer who doesn’t like to spend much time for shopping. 
This strategy allows retailers to become more price competitive, compared to similar or smaller grocery retailers, as they spend relatively lower capital expenditure per store and lower overheads, due to already established distribution network and bulk purchases made directly from farmers.  


Cargills Ceylon, which also has interests in food and beverage manufacturing and restaurant trade through franchises, generated revenues of Rs.112.6 billion and earnings of Rs.3.5 billion for the financial year ended on March 31, 2021, up 5.19 percent and 29 percent, respectively. 


However, its retail business was seen languishing in the final three months, despite the consumer spending boom seen in the first three months of 2021. 

 

Order Gifts to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Vegetables, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

Sell your vehicle & house fast with hitad.lk only cost is Rs.400, Advertise in Hitad.lk for free to sell your mobile phone. Want to sell your Pet, Advertise for Free in hitad.lk Search for Houses in Sri Lanka and find the best place through Hitad.lk find your best tuition place. Find the best partner for you, visit hitad.lk Find anything at any time hitad.lk.

  Comments - 0

Order Gifts to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Vegetables, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

 

Sell your vehicle & house fast with hitad.lk only cost is Rs.400, Advertise in Hitad.lk for free to sell your mobile phone. Want to sell your Pet, Advertise for Free in hitad.lk Search for Houses in Sri Lanka and find the best place through Hitad.lk find your best tuition place. Find the best partner for you, visit hitad.lk Find anything at any time hitad.lk.


Add comment

Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Reply To:

Name - Reply Comment




Order Gifts to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Vegetables, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

 

Sell your vehicle & house fast with hitad.lk only cost is Rs.400, Advertise in Hitad.lk for free to sell your mobile phone. Want to sell your Pet, Advertise for Free in hitad.lk Search for Houses in Sri Lanka and find the best place through Hitad.lk find your best tuition place. Find the best partner for you, visit hitad.lk Find anything at any time hitad.lk.


The Three Universal Truths in Buddhism

Buddhism is a moral and philosophical system, which expounds a unique path of

After night of terror, activists accuse government of smokescreening

On May 9, 2022, several hours before former Prime Minister Mahinda Rajapaksa

RECOVERY OF STOLEN ASSETS – Part I

The “#gotagohome” campaign that started a few weeks back demanding the Pr

‘GotaGoGama’ rises through ashes after Monday’s nightmare

A half burned down tent standing on plastic pillars, heaps of rubble from the