Industrial Visit to Hypercity
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Industrial Visit to Hypercity
16 August 2017 - 10:59, by , in blog, PGDM, Comments off

Hypercity is a part of K.Raheja Group and Corporation, a leader in the Indian Retail Sector. It is a supermarket chain which currently operates 20 stores throughout India. They launched their first store in Malad-Mumbai, spread over 1,25,000 sq.ft. Since that they have opened a total of 19 stores in and around Mumbai, Navi Mumbai, Thane, Delhi, Noida, Hyderabad, Bangalore, Bhopal, Amritsar, Pune, Ahmedbad and Vadodara.

Hypercity’s concept- “Something Fresh Everyday” is very much true to its words. The company is using many techniques and methods in order to maintain this trend. The main area of focus is food, home and fashion. Hypercity deals with wide range of varieties and brands of Footwear, Apparels, luggages, Electronics, Sports, Toys and home décor.

Talking about Hypercity’s Product Display, Layout & Store Design, it is quite clear that it attract its customers with its unique techniques of store layout and designing. Taking care of each sections of apparels (mens, womens and kids), Foods (Vegetarian and Non-Vegetarian) and Daily-based products, the layouts encourages the customers to buy the products.

The products are displayed category-wise, i.e. for each group of customers. In order to display the latest fashion wear prevailing, they use Mannequins which without any doubt displays the products in an effective manner. Every product is placed accordingly to the convenience of the customer which enters into the store and allows them to ensure & access the product without any difficulty.

A Stock Keeping Unit (S.K.U) is a product and service identification code for a store or product, often portrayed as a machine readable barcode that helps to track the items for inventory. It has around 11,000 SKU’s for tracking the item.

The type of environment maintained in Hypercity is quite soothing and refreshing, this brings a sense of homeliness in the minds of the customers coming to Hypercity.

Various types of fixtures which are used in the store to display merchandise are Gondola, Four-way browser, Wall, Nesting tables and Posters.

No compromises are made regarding the quality of the product which is made available to the customers.

Now, comes in the Supply Chain of Hypercity which enable and ensures the availability of products in the store. This is mainly operated by using two models. The first on is Direct Store Delivery (D.S.D) and Distribution Center (D.C).

Direct Store Delivery is a distribution strategy that offers an alternative to the central distribution. It allows the retailers to reduce operating costs by sidestepping the retailers Distribution Center.

This technique of Supply chain comes a set of advantageous features hich are listed as under:-

  • Fastest growing category.

  • 5 times more replenishments to the shelves.

  • Upto 2 times higher promotional lift with traditional funds.

  • 24 % volume, 52 % of store profits.

Distribution Center for a set of products is a warehouse and all other specialized building, often with refrigeration or air conditioning , which is stocked with the products to be redistributed to retailers, to wholesellers or directly to the consumers.

This type of Supply Chain is also having some features which are listed below:-

  • Accessibility (all products is one central location)

  • Costs (saving money in long run since you wouldn’t operate multiple distribution centers.)

  • Transportations (all your products are in the central location thus saving in transportation costs.)

Hypercity doesn’t own any Distribution Centers that is the reason why deliveries are made in daily basis. Hours are fixed when the products are replenished upon the shelves, i.e. 8-9 A.M. The percentage of stock out comes out to be 5% of the various products which are available in the stores.


Inventory Turnover is checked on daily basis by the assigned member. Alongside given is the description of the different products categories whose Inventory turnover is checked frequently. These include-

  • FMCG Products – 3 days

  • Fashion Products – 1 Month

  • Fitness and Sports Products- 2 Months

As we all know that technology is growing as a rapid pace which is affecting all the various sectors and they in no doubt, have to adapt this change otherwise they would fall behind. Hypercity also moves with the technological advancements and adopt various new technologies in order to gain an upper hand on the competitors.

In order to maintain Security of the store, Hypercity uses some of the latest techniques in order to keep a check upon the every aspect, They have a well-maintained Security CCTV Camera mainframe which monitors each and every thing 24*7. RFID is also used for security purposes in the store. Every product in Hypercity is given a RFID (Radio-frequency identification) which responds when they are carried away from the store without billing.

In actual, Hypercity is becoming much more accustomed to the technological changes and is adopted it in order to meet its beneficial aspects. Inventory/Stock levels are maintained using the technology, in actual every night some employees are assigned to scan the barcodes on the shelves which in return gives the details of that particular product. Hypercity uses sinages, shelf talkers and ARS technology in order to tackle the various problems related to the selling of the products.

The Customer Relationship Management (CRM) is another important aspect which makes Hypercity apart from its various competitors. They have a club named as “Discovery Club” which is formed for the regular and loyal customers in which they give certain beneficial discounts. Customer Information and data are collected which the customers are checking out with their bills in the form of a feedback form or at the billing counter. They often organize certain events inside the stores which enables them to collect various required information about customer preferences and opinions.

Hypercity knows well about its customer need and preferences which they are provided through feedbacks either through telephonic calls and interviews or by giving a questionnaire. This makes it easy to understand the shopping patterns and even the flaws that the store has and which needs to be taken out for a much better Customer Relationship.

The loyal and regular customers are always considered an important asset for the company and they should be maintained in doubt. Here, in Hypercity regular and loyal customers are offered Loyalty Cards which allows them to get offers and even get monetary discounts which can be redeemed as cash discounts on the products that the customer buys.

They are also offered discount coupons which tends to be a motivation factor for customers.

Hypercity provides Customer Service Employees who guide the customers and help them if they have any issues with the product quality and location. It also has added a feature of Home Delivery services for the customers.

Hypercity’s Pricing Strategy mainly focuses upon the Middle Class people of the society by providing a Low Pricing portfolio. As, they focus upon a wide variety of products their main aim is to provide and keep the prices on MRP or bit less. The company offers many types of discounts and sales which depends upon the seasons, festivals and even a month which is particularly recognized.

Hypercity’s main competition is with Shopper’s Stop but now-a-days they are also considering D MART as their competitor, due to their Low Pricing Strategy. Even online retailers doesn’t compete with the Strategies of Hypercity due to their low margin of pricing on the products.

In order to maintain a continuous sale on the day of discounts and Sale, there are continuous announcements regarding the discounts on various products on the speakers and the concerned workforce would gradually make changes in the visual merchandising.

Hypercity has the option of even returning the products to the vendors depending upon the expiry issues, so that it save guard their motto “Something Fresh Everyday” without compromising upon the quality of the products which are to be sold to the customers.

The display of various signage at Hypercity includes Category Signage, promotional Signage, Point of Sale Signage and digital signage. These provide the relevant information to the customers about the ongoing offers and discounts. Dropdowns, A3, A5, A4, self talkers are the various ongoing signage which can change as and when necessary.

Hypercity offers Loyalty cards known as Discovery Club which are availed by the regular customers coming to the store. Certain Credit points are collected at every purchases made by that customer and he can avail them as and when required.

Hypercity being one of the prominent Retail store, has a dominant and powerful focus upon the CRM and customer retention portfolios.