Flipkart is planning to expand its services in Mumbai by launching its first online grocery superstore. The firm plans to include tier I and tier II cities in the next five years.
The e-commerce firm announced on Wednesday that they are launching an online “Superstore” for which they did a soft launch in the city in February. It delivers to 91 pin codes in Mumbai covering nearly 85-90 per cent of the city.
Currently, Flipkart is present in Bengaluru, Hyderabad, Chennai and Delhi. The company is owned by Walmart and had started its online grocery business a year and a half ago. They opened a fulfilment center in Bhiwandi for groceries offering almost 10,000 products, including 600 to 700 of its private labels.
The biggest retail category, grocery is placed at USD 400 billion wherein, e-commerce accounts for 0.5 percent.
Manish Kumar, Head of Grocery at Flipkart, recently told the reporters, “Grocery is the space which is going to give next level of e-commerce growth. However, it is one of the toughest categories from online perspective. We are cognizant of it. We built a dedicated supply chain for groceries.”
Over the last few years, the company’s business has grown phenomenally. Manish Kumar stated that the firm is bullish in India and has long-term commitment in the market. He adds that the firm has long- term bets in the category of grocery, only because it has a backing by Walmart.
Manish Kumar said, “Grocery has started giving stickiness to the platform also because customers who buy grocery come back to the platform to buy something else as well.” He said that the company is studying the market closely and will look at daily milk delivery at some point in future.