The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.
Monalisa Sarkar, MBA 2014-16, Vinod Gupta School of Management, IIT Kharagpur.
MUMBAI, MARCH 13:
According to Business Line, Mahindra Retail’s focus is on increasing retail penetration. They plan to increase both brick and mortar and eCommerce and are adopting a three-pronged strategy. Shut down nonviable and under-performing stores under the Beanstalk chain; strengthen eCommerce operations through Babyoye that was acquired in February this year; and expand the Mom & Me retail chain through the franchise route.
At present, Mahindra Retail has 115 Mom & Me stores and 23 Beanstalk outlets. Beanstalk stores will be shut or merged with Mom and Me outlets. About 30-35 stores will either be closed or restructured this year. Mom & Me chain offers pre- and post-maternity and kids wear products, Beanstalk is a toy store chain and Babyoye is a portal targeting infants and kids products. The company expects Babyoye to contribute about 20 per cent to its revenues.
They are planning to merge their own online venture Momandmeshop.in with Babyoye to offer a single website for its customers and expand their product range by offering Mom & Me’s maternity wear collection on Babyoye. Later it will be discontinued by next quarter. However, the company will also be selling its private label products through other online websites such as Flipkart and Amazon.
NEW DELHI, March 15:
According to The Economic Times, “We believe that foundations of brick and mortar stores are solid and going forward there will be an interplay between physical stores and e-commerce… We plan to open 50 new Mom & Me stores in the next fiscal,” Mahindra Retail CEO Prakash Wakankar told .
Mahindra Retail will also have a common loyalty programme for both Mom & Me and Babyoye.com.