The cover charge would be applicable during a five-day promotion campaign from November 22-26, when Brand Factory will charge consumers buying goods worth Rs 5,000 at maximum retail price (MRP) from its 50-odd stores only Rs 2,000, and even that would be returned in the form of free merchandise, gift vouchers and cash back in the company’s mobile wallet. Customers can also redeem the entry fee against purchases.
“We aren’t really charging, because it is refundable,” said Kishore Biyani, founder of the country’s largest retailer. “The move is similar to how pre-booking happens online and in the bargain we are gaining customer loyalty,” he said. But why a cover charge? “It is to encourage serious shoppers, and bring exclusivity to their shopping experience,” said Biyani who is also the chief executive at Future Group.
A year ago, Brand Factory — a discount chain built on the lines of American chains such as TJ Max and Marshalls — did a business of Rs 115 crore during a similar three-day shopping event, selling more than a million pieces of garments. But the crowd was too big to manage. Some 12 lakh people visited Brand factory outlets during the event. This time, the company expects a more controlled environment.
“Last year, there was chaos and we couldn’t service all customers,” said Suresh Sadhwani, business head at Brand Factory. “But now, we hope to limit the customers and curate the footfalls better,” he said. Over the past two years, several retailers have been taking steps to help customers impatient with long lines at checkout counters, especially on weekends.
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