A presentation by the Boston Consulting Groups senior partner and director Abheek Singhi on the first day of the India Retail Forum, currently on in the city, said changing lifestyles, as well as increasing transportation and urban costs, are compelling modern retailers to aggressively consider small-format stores as opposed to large-format ones, the trend earlier.In his presentation, Singhi said the kirana-store model works well in a complex market like India, where small format stores can easily penetrate the length and breadth. There are 12 million kirana stores in India translating into 10 stores per 1,000 Indians. The penetration of these stores is enormous in that sense. In many respects, it is a motivating factor for big-retails small store plans, he said. Coming at a time when big retail is grappling with steep rental and location costs, it makes ample sense, Singhi added. Kishore Biyanis Future Group, for instance, will open 4,000 stores in various formats - KBs Fair Price, Nilgiris, Easy Day and other formats - by 2021. The Tatas Group Trent Hypermarket, on the other hand, will set up 400 neighbourhood stores under the brand Star Daily, and Reliance Retail will open one Reliance Fresh store a week, according to recent statements by these firms. Even foreign retailers such as Walmart are jumping onto the bandwagon, with plans to invest in smaller format stores, representing a combination of its Walmart Market and Walmat Express Units.

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