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JSW Steel, the largest private sector steel producer in the country has expanded its retail network with the launch of 72nd JSW Shoppe outlet at Vile Parle (West) at Mumbai today. Based on the franchise model, the chain which already has a presence across 18 states including J&K, offers a choice of JSW’s branded steel products to retail customers in an air-conditioned ambience.
Speaking at the inauguration, Seshagiri Rao, JMD, JSW Steel Ltd and CFO, JSW Group said, “We want our customers to get the right quality product at the right price and right place. Shoppe is an effort to create a customer friendly ambience and creating a strong relationship based on trust and reliability with JSW steel.”
“Steel availability is an issue in rural and semi rural areas across the country,” added Jayant Acharya, director (sales & marketing), JSW Steel Ltd. “The Shoppe concept is designed to give customers in these areas a touch and feel of steel.

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The chain offers standardised JSW Steel products across outlets. We have also introduced five brands to give our customers more options to choose from.”
According to Acharya, the concept has already proven to be a success for the company with each outlet clocking sales of approximately 600 tonnes per month. “We plan to increase retail sales to about 20-25% of our total volumes over time,” he said.
“Going forward we plan to have about 200 JSW Shoppe outlets by March 2010 which will then be scaled up to touch 600 outlets over the next two years. We are also looking at the possibility of launching a mobile (on wheels) version of the Shoppe concept in the near future.”
Elaborating on the cost sharing ratio for each outlet Rao said, “The franchisee is expected to invest about 80% of total cost while JSW Steel puts in the balance 20%.” He added that the company had thus far invested about Rs1.4 crore in setting up the existing 72 outlets of the chain.
 

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