Go Getter (Contd)

Finally I met Gihan.

He took me thru a part of their corporate presentation which focused on “Go-Getter”. My guess was absolutely right, not only were they doing something right; they had bigger plans for expansion. When he said “we are considering “Go- Getter” as a place and not a mere convenience store” I was intrigued to find out how a mini super market, with their limited space would adapt this concept from traditional super markets.

He explained the reasons for diversification; the group’s main businesses were all based on credit and it was important to get in to a business that would be cash driven. Clearly they would not put all their eggs in one basket. The group also had devised a strategy, leveraging their software automation skills in to “Go-Getter” which will offer more shopper benefits in future for example, they want to integrate IPVPN to ensure more effective stock keeping to avoid customer disappointments. Once the system is fully operational E-channeling, Courier pick ups, utility bill payments and a host of other value added services will be offered to the public.

What looked like a spin off of “Seven Eleven” had more to offer. The concept of a neighborhood mini mart had been greatly customized to local culture. “That’s why we started selling loose rice and other essential items” explained Gihan, “if you notice some people still have the habit of biting a few grains of rice before the purchase to assure quality” However he believes these old habits will fade with upgrading living standards, especially among the new generation of shoppers. They also plan to market precooked nutritious meals for singles and young couples who are juggling with multiple roles and have far less time for cooking. In fact this has been their thinking behind the Brand name positioning it to the next generation of shoppers who will patronize their mini mart in between their weekly visits to the super market.

I wished they had thought more about their naming strategy as the name could have been used more effectively to offer more value to all stakeholders concerned especially to shoppers.

Let me also shed some light on the super market business in Sri Lanka; Among 350 modern trade outlets approximately 230 fall under the category of super markets, lead by Cargills with 100+ outlets (including their version of mini marts) followed by Keells nearing 30 outlets. 60% of super market revenue comes from food related items and approximately 30% revenue from sale of fresh items. Non-food category is recording a growth of 20% year on year. Gender split is almost 50-50 which could be challenging for super markets as males and females have distinct shopping habits for example male shoppers give more prominence to availability of products intended to purchase, ease of parking and quick check out while more females tend to value the assistance of sales personnel. Sales associate’s knowledge on options in the store and ability to recommend products were more important for them where as for male shoppers it was directly linked to their interest in finding the product they want. ¾ of shoppers go well planned making a list of brands, products, quantities to purchase and approximately 45% tend to shop alone while the balance 55% with another family member.

Although there are many new developments in this category we are yet to witness innovative promotions and in store branding.

Pictures: www.dpjh.com, www.cargillsceylon.com, Google Images

Go get it..Go Getter

It was hard to wake up at 11 am. I‘ve hardly had any sleep, but as always curiosity was over powering and I succumbed without much resistance. I think I am not a perfect agency person, coz I could only get an extra half of hour from Gihan, the Deputy General Manager of DPJ Holdings, the owners of Go-Getter convenience store.

I started noticing Go-Getter in mid 2007 when I saw a few more outlets opened up in suburb areas. This was an interesting swerve in the retailing business, as the early signs of neighbor hood mini marts were not spreading as fast as expected. “Samantha Stores” (near kushmi foods on Dutugemunu St) was one of the few who converted to this concept in early 2000’s. (2002) However the investment was taking a long time to realize and the owner was not too pleased with the returns. His wide smile was soon disappearing and a sense of desperation was clearly evident as he was hiding behind unfamiliar shelves. Unfortunately super markets grew at the cost of these mini marts as they were unable to differentiate their business from rapidly expanding super markets. Although these “Mudalalies” (Shop Owners) were excellent “social connectors” they could not stop residents in the neighborhood from driving down to the closest Cargills or Keells Super. The fate was the same everywhere these Mini Marts operated including in areas like Ja-ela and Wattala.

So when I spotted the ever expanding Go-Getter network I thought it could reveal some interesting facts. The call to Gihan was a result of this curiosity.

My personal experiences with Go-Getter have not been very encouraging. Few months ago in Borella, a friend of mine had been asked to leave the bottle behind when the cashier did not have change. Two weeks before on a weekday afternoon around 2 pm when I stopped near the Nawala outlet, the door was locked although the sign board still said it’s open. But still Go-Getter was definitely doing something right, as I always saw people walking in ‘n’ out of it. So I took down the numbers on the poster that hung on the glass not to make a complaint rather to find out more about this interesting expansion. Mr. Gihan Samarawickrama, Deputy General Manager of DPJ Holdings group was very responsive when I called and was willing to meet me. I was on my way hopefully I will find out more about why a software application solutions company that focuses on automation diversified in to this challenging retailing business.

pictures courtesy Google Images