Friday, June 14, 2024

Vijetha Supermarkets: From Humble Beginnings to Retail Royalty

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In the heart of Andhra Pradesh’s agricultural landscape, a young man named Jagan Mohan Rao harbored ambitious dreams. Starting his career on the shop floor of Trinetra Supermarket, Rao eventually rose to establish his own retail empire, Vijetha Supermarkets. With 109 outlets spread across Telangana and Andhra Pradesh, covering over 5 lakh square feet of retail space, and aiming for revenues of Rs. 850 crore this fiscal year, Rao’s journey exemplifies the transformative potential of perseverance and foresight.

Vijetha Supermarkets’ meteoric rise from a modest 1,000 sq.ft. store to a network of 109 outlets is a testament to Rao’s unwavering commitment to quality and customer service. As Vijetha Supermarkets embarks on its journey of expansion and diversification, the future is ripe with possibilities, promising even greater heights of success and achievement.

Jagan Mohan Rao, a man of simple beginnings, hailed from the agricultural heartlands, and was born in a village called Nimmagaddavari Palem near Guntur district, Andhra Pradesh. When the time came to make his mark in life, fate led Rao to the doors of Trinetra Supermarket, where he commenced his humble journey on the shop floor, a novice navigating the intricacies of retail operations.

During the formative years of his fledgling career, spanning from 1993 to 1998, Rao honed his skills and garnered invaluable experience, gradually ascending the ranks to assume the role of a store manager. His entrepreneurial journey began not in the glossy aisles of corporate boardrooms, but within the walls Trinetra Supermarket, where he earned a modest sum of Rs.750.

Yet within these humble beginnings lay the seeds of ambition. “I started my professional career at Trinetra Supermarket in Hyderabad, the first-of-a-kind supermarket of an organized retail chain, where I served as a store manager. But I often thought about establishing a business house of my own. After a lot of planning and careful consideration, I decided to launch a supermarket. My dream materialized on 7th March 1999, when I opened the first Vijetha Supermarkets’ store at Chandanagar, Hyderabad,” recounts Rao.

Amidst the dynamic urban mosaic of Hyderabad’s cityscape, a new star of grocery retail burst onto the scene on a brisk March day in 1999: Vijetha Supermarkets. Conceived by Jagan Mohan Rao, this newcomer to the grocery retail stage has adroitly matured into an exemplar of retail excellence, etching its mark across the urban landscape of Hyderabad and the expanse of Andhra Pradesh.

With a keen eye for opportunity and a commitment to customer service, Rao embarked on a journey that would redefine grocery shopping for generations to come. Echoing with the promise of new beginnings, the first Vijetha Supermarkets’ store, about a 1,000 sq.ft., opened its doors to the public. From its modest origins in Chandanagar, Hyderabad, Vijetha Supermarkets has grown steadily, fueled by a dedication to quality and a customer-centric ethos.

Vijetha Supermarkets : Fact File

· Retailer/ Brand Name: Vijetha Supermarkets Pvt. Ltd

· Launch Year: March 1999

· Company Headquarters: Hyderabad

· Key People: M. Jagan Mohan Rao – Chairman & Managing Director; M. Sandeep Murakonda, Executive Director; Siddharth Murakonda, Marketing Director

· Stores’ Operating Structure: Lease and Rental

· Number of Employees: 3500

· Total Number of Stores as on date: 109

· Cities where the Stores Operate:  Hyderabad, Vijayawada, Guntur, Rajahmundry, Kakinada, Vishakhapatnam

· Total Retail Space as on date: 5,83,170  sq.ft.

· Annual Turnover: 725 crore for FY22-23

· Average Sales per Sq Ft per Day: Rs. 1560

· Average Bill/ Ticket Size: Rs. 410

· Same Store Sales Growth: 18.8% for Feb 24

· Average Foot Traffic across Stores:  Per day 69,000

· Number of Suppliers: 700

· Size of stores: Gated – 24  stores &  Non – Gated 85 Stores; Below 2000 sq.ft. – 23 stores; 2000 to 5000 sq.ft. – 54 stores; 5000–7000 sq.ft –  16 stores; 7000–10000 sq.ft – 7 stores; 10000–15000 sq.ft. – 5 stores; 15000–20000 sq.ft. – 4 stores

Rao’s journey serves as a poignant reminder of the transformative potential inherent within every individual, regardless of their humble beginnings. From the rustic fields of his village to the dynamic landscape of urban retail, Rao’s story epitomizes the indomitable spirit of human endeavor and the boundless possibilities that await those who dare to dream and strive for a better tomorrow.

From Basics to Brilliance: Evolution of a Retail Titan

With time, Vijetha has evolved, expanding its offerings from basics like staples and groceries to encompass a diverse and eclectic array of products – from fresh produce to fresh meat, seafood, bakery, and exclusive cosmetic brands. The store stocks all major supermarket categories like fruits & vegetables, food & beverages, groceries, dairy, confectionery, FMCG,  gifts & novelties, cosmetics, general merchandise, apparel, small & kitchen appliances, imported products. Within the aisles of Vijetha stores, a cornucopia of essential and indulgent offerings awaits discerning shoppers. Each category is meticulously curated to cater to a myriad of tastes, preferences, and desires, encapsulating the essence of modern convenience and luxury.

Venture further into the heart of the store, where a kaleidoscope of flavors awaits in the form of food and beverages from every corner of the globe, each item carefully selected to ignite the taste buds and culinary inspiration.

The grocery aisles showcase the retailer’s commitment to providing everyday essentials with unparalleled quality and variety, ensuring that no household need goes unmet. Meanwhile, the dairy section offers a treasure trove of creamy delights, from artisanal cheeses to wholesome milk and yogurts, sourced from trusted producers.

Indulgence knows no bounds in the confectionery section, where an array of sweet temptations awaits, and promising moments of pure bliss with every bite. Meanwhile, the FMCG (Fast-Moving Consumer Goods) shelves brim with household staples and personal care essentials, seamlessly blending practicality with luxury.

For those seeking the perfect gift or a delightful novelty to brighten someone’s day, the gifts and novelties section offers an enchanting array of options to suit every occasion and recipient. And for those in pursuit of beauty and self-care, the cosmetics department stands ready to pamper and rejuvenate, with an extensive selection of skincare, makeup, and fragrances to enhance one’s natural radiance.

Similarly, the general merchandise section boasts an eclectic array of goods, from household essentials to gadgets and gizmos that promise to simplify and enhance daily life. And for the fashion-forward, the apparel department showcases the latest trends and timeless classics, ensuring that style knows no bounds.

For the culinary enthusiasts and home chefs, Vijetha’s selection of small and kitchen appliances promises to elevate cooking endeavors to new heights, with state-of-the-art gadgets designed to streamline and enhance culinary creativity. And for those seeking a taste of the exotic, its imported products section offers a passport to global flavors and cultures, allowing shoppers to embark on a culinary odyssey without ever leaving the comfort of home.

In essence, each Vijetha’s store is more than just a supermarket; it is a veritable emporium of possibilities, where every aisle holds the promise of discovery and delight. With a commitment to quality, variety, and innovation, the retailer strives to exceed expectations and enrich the lives of its valued customers with each and every visit.

As the years have rolled by, Vijetha’s footprint has expanded, reaching cities and communities across Telangana and Andhra Pradesh. Today, Vijetha Supermarkets stands as a highly successful retail entity, widely recognized for its substantial presence in the market. Operating across several key cities including Hyderabad, Vijayawada, Guntur, Rajahmundry, Kakinada, and Vishakhapatnam, spanning the states of Telangana and Andhra Pradesh in southern India, the brand has firmly established itself as a frontrunner in the regional retail landscape.

Since its inception with a solitary outlet in 1999, Vijetha Supermarkets has expanded into a robust network comprising 109 grocery supermarkets. The retailer caters to a vast clientele base exceeding five lakh dedicated patrons each month, who make in-store visits and online app orders.

Out of Vijetha’s 109 stores, 24 are in gated communities and 85 stores are non-gated. Vijetha Supermarkets has strategically situated its network of 109 stores, with 24 outlets strategically positioned within gated communities, catering to the discerning needs of residents within exclusive residential complexes. Additionally, the company operates 85 stores located outside gated communities, ensuring accessibility and convenience for a broader demographic of customers across various urban and suburban locales.

Initially, the company concentrated its efforts on establishing stores within the range of 2000 to 5000 square feet. However, in recent times, it has transitioned towards opening larger format outlets spanning between 7,000 to 20,000 square feet. Notably, last year, the company introduced a Superstore covering an expansive area of 30,000 square feet in Kondapur, a suburban area of Hyderabad.

In the fiscal year 2022-23, Vijetha Supermarkets reported revenues of Rs. 725 crore, with average daily sales per square foot reaching Rs. 1560. The company experienced a remarkable growth rate of 14.2% in 2023 as compared to the preceding year. Furthermore, the same store sales for February 2024 demonstrated a significant increase, recording a growth of 18.8%. Vijetha’s own store brands in grocery and snacks contribute about 20% of overall sales in groceries and namkeens.

Ethos of Simplicity and Excellence

At the heart of this success story lies a simple philosophy: a dedication to simplicity and a commitment to excellence. For Jagan Mohan Rao and his team, the key to success lay not in grandiose schemes, but in the relentless pursuit of quality and customer satisfaction. Reflecting on his brand’s commitment to simplicity and quality that drives every aspect of its operations, Rao says: “Simplicity is at the core of our business philosophy and it is this ethos that drives the culture and the way of working at Vijetha Supermarkets. We literally keep everything at Vijetha simple and systematic. For us, one thing remains unchanged: a commitment to simplicity, quality, and above all, the cherished relationships built with customers and communities alike.”  

He also attributes Vijetha’s success to the help and support of the employees who are all imparted proper training to this effect. “But for their sincerity, hard work and integrity, our company would not have risen to this level, and that’s why we at Vijetha dedicate the major chunk of its success to our employees.”

This month, as Vijetha Supermarkets celebrates its silver jubilee, it stands as a testament to Rao’s power of vision and dedication. “As we celebrate a remarkable milestone, the team at Vijetha Supermarkets expresses it heartfelt thanks to my father Jagan Mohan Rao, whose visionary approach and dedication to holistic customer service have been the driving force behind our success,” says Sandeep Murakonda, the 27-year-old elder son of Rao, who officiates as Executive Director, and leads Operations and Strategy at Vijetha Supermarkets.

The recent launch of Vijetha’s 109th store at Srila Park, Hyderabad, is a testament to the retailer’s continuous effort to bring quality products, a diverse range of choices and exceptional service closer to its cherished customers. “We believe in not just meeting but exceeding customer expectations and this new store is yet another step in that direction. Our success is not just measured in numbers, it’s about the relationships we build, the communities we become a part of, and the smiles we bring to our customers faces. Each store is a reflection of our commitment to creating delightful shopping experiences,” says Siddharth Murakonda, the younger son of Rao, who joined Vijetha Supermarkets last year, assuming the position of Marketing Director, after graduating out of SP Jain School of Global Management.

In targeting the urban and semi-urban areas within Hyderabad and Andhra Pradesh with its eclectic product mixes, Vijetha Supermarkets not only serves as a marketplace but also as a bridge between communities, bringing people together in pursuit of their shared goals and aspirations. Vijetha’s stores have evolved into vital community hubs, far more than mere shopping destinations. They seamlessly interweave with the essence of the neighborhoods, infusing vibrancy and vitality into the lives of every visitor who step through their doors.

The Vijetha Supermarkets’ Experience

As a visionary entrepreneur with a passion for transforming mundane shopping into an extraordinary experience, Jagan Mohan Rao’s belief remains simple yet profound – every customer deserves nothing less than the best. The moment shoppers step into Vijetha Supermarkets, they are greeted by the tantalizing aroma of freshly baked bread, the vibrant colors of ripe fruits and vegetables, and the cheerful smiles of the staff ready to assist.

The tagline “Fresh Healthy Living” adorns the walls, reminding patrons of the retailer’s commitment to quality and freshness and offering the finest products of superior quality. The stores offer everything for daily home needs with products carefully selected to ensure only the best for their customers.

But beyond elevating shopping from being a daily chore to a world class shopping experience, the retailer also offers real value for money. While shoppers are pleasantly surprised by the gleaming aisles and neatly stacked shelves, there is a secret that has made Vijetha Supermarkets truly exceptional. The incredible deals awaiting shoppers every week truly sets Vijetha Supermarket apart.

There are exclusive offers and discounts that border on the unimaginary. Customers are seen delightfully walking away after buying premium products at unbelievable prices, more than they ever dreamed possible. It’s not just about saving money; it’s about getting the best bargains on premium products, making every purchase a win-win situation.

“Our retail philosophy is to provide freshness, choice, value and service to our customers. We have the best deals running every week where customers are offered the best of bargains,” asserts Siddharth. For the 69,000 daily visitors to Vijetha’s stores, its aisles hold the promise of freshness, choice, value, and service, inspiring all who cross its threshold. At the core of it all is a customer-centric approach, where every decision is made with the shopper in mind. “Our stores are not just places for selling products but about providing an unforgettable shopping experience that leaves a lasting impression,” says Siddharth.

Supply Chain and Logistics Management

Supply Chain Management lies at the heart of Vijetha Supermarkets’ operational prowess, serving as the linchpin that ensures seamless coordination and efficiency across the entire retail ecosystem. Centralized distribution stands as a cornerstone of this strategy, enabling the swift and streamlined movement of goods from suppliers to stores. By consolidating distribution operations, Vijetha Supermarkets optimizes inventory management and minimizes logistical complexities, resulting in reduced delivery times and enhanced responsiveness to customer demands.

Efficient route planning further enhances the agility and effectiveness of the supply chain, ensuring that products reach their destinations swiftly and cost-effectively. Through the strategic optimization of delivery routes, Vijetha Supermarkets minimizes transportation costs and environmental impact while maximizing delivery efficiency.

In addition to streamlining distribution processes, Vijetha Supermarkets employs advanced inventory management techniques to minimize redundant stocks and optimize inventory levels. By leveraging data analytics and predictive modeling, the retailer anticipates demand fluctuations and adjusts inventory levels accordingly, thereby reducing carrying costs and minimizing the risk of stockouts or overstock situations.

Furthermore, Vijetha Supermarkets recognizes the integral connection between front-end and back-end processes in delivering a seamless customer experience. By fostering close collaboration and integration between various operational functions, including procurement, warehousing, and retail operations, the retailer ensures that products are readily available to meet customer demands while minimizing inefficiencies and redundancies in the supply chain.

Simply put, Vijetha Supermarkets’ Supply Chain Management approach goes beyond logistics; it reflects a complete dedication to being efficient, flexible, and customer-focused. Through centralized distribution, efficient route planning, inventory optimization, and seamless process integration, the retailer continues to set new benchmarks for excellence in retail logistics.

A Customer-Centric Retail Journey

Vijetha Supermarkets has strategically expanded its footprint, driven by an acute understanding of consumer needs and careful location selection. It has opened stores based on the understanding of consumer needs and knowing the exact locations where a supermarket will be most accessible to the public. Thus, each store is strategically positioned in high-density areas, ensuring optimal accessibility to meet the demands of diverse customer demographics.

Before opening new stores, the retailer also conducts thorough market research to identify potential locations with high demand and growth potential. This ensures that the new stores are strategically located to capture market share and maximize profitability. And in doing so, they are not just building supermarkets — they are building communities by meeting the needs of their customers with every step of expansion. Community engagement is an important element of Vijetha’s customer-centric approach. Beyond just retailing, Vijetha Supermarkets actively engages with the communities it serves through various initiatives, contributing to its brand image as a responsible corporate citizen.

A thorough understanding of store location and customer needs is key to a flourishing retail business and Vijetha has plenty of expertise and experience on these two fronts. “All our stores are located in areas with high density and concentrated population, on main streets, inside gated and non-gated communities, which allows the stores to cater to different customer segments and service the needs and requirements of people with varied tastes,” says Sandeep.

The retailer employs effective merchandising techniques that are employed to highlight key products and drive sales. Each store’s inventory is tailored to reflect the demographics and shopping habits of its catchment area. The retailer carefully curates its product assortment to cater to the preferences and needs of local customers. In terms of display and merchandizing strategy, the emphasis is more on popular products and customers’ need-based products.

The retailer prioritizes the visibility of products that offer value and affordability, which ensure they meet the preferences of the retailer’s wide-ranging customer base. Seasonal products are also prominently displayed. Additionally, Vijetha stores allocate more space to products and categories that are growing at a faster rate. Reallocation of space to products and their repositioning is a constant process at the store for better business propagation.  

In order to attract and engage the younger generation of shoppers, the company strategically curates its product offerings to align with the preferences of this demographic. This includes sourcing popular items, such as imported food products and ready-to-eat options that resonate with youthful tastes. Additionally, the company maintains a diverse selection of cosmetics and deodorants to cater to the beauty and personal care needs of younger consumers.

Furthermore, there is a deliberate focus on expanding the confectionery category to enhance its appeal to young shoppers. Efforts are also underway to augment the product range to include high-priority items such as energy drinks and energy bars, which are particularly favored by the youth demographic.

As an omnichannel retailer, Vijetha Supermarkets also boasts a robust online platform, Here, customers can access an extensive range of food items, including fruits, vegetables, groceries, household essentials, and personal care products, all offered at competitive prices. Additionally, the convenience of free home delivery is extended to customers across Hyderabad areas, subject to a minimum order requirement. Customers can also place orders through phone and WhatsApp.

“Our online platform allows you to purchase with the option of cash on delivery or make the payment using credit/debit online banking also. So, if you are at Hyderabad and don’t want to go out for shopping at a supermarket, just login to and place your order and get the benefits of purchasing at the best rates from us. Not only do we bring for you the healthiest and freshest fruits and vegetables, grocery and staples as well as the best organic food items at a most competitive price but also the assurance of same-day delivery,” says Siddharth.

When it comes to making personalized recommendations, the retailer leverages advanced data analytics and artificial intelligence capabilities. Through meticulous analysis of customer purchase history and preferences, Vijetha Supermarket adeptly makes tailored product suggestions. This granular approach significantly enriches the online shopping journey – aligning seamlessly with individual customer needs and preferences.

With its commitment to customer satisfaction, the retailer has succeeded in building a large and loyal customer base over the years. “We prioritize customer satisfaction by providing high-quality products, excellent customer service, and a pleasant shopping experience. Understanding and meeting the diverse needs of customers across different demographics and locations is key to maintaining loyalty and attracting new customers,” adds Siddharth.

 To elevate the standard of customer service, exclusive privilege cards are extended to valued patrons. Harnessing cutting-edge technology, Vijetha Supermarket seamlessly executes and oversees customer loyalty programs. Utilizing digital loyalty cards or mobile applications, patrons have the opportunity to accrue rewards points with each purchase, access personalized promotions, and redeem their rewards. This comprehensive system cultivates lasting customer loyalty and promotes repeat business, ensuring a mutually beneficial relationship between the supermarket and its clientele.

Indeed, the integration of technology across all aspects of Vijetha’s operations stands as a key element in elevating the customer experience. This includes implementing point-of-sale systems, inventory management software, online ordering platforms, and customer relationship management tools.

For instance, mobile payment solutions expedite checkout, while digital signage keeps customers informed and engaged. To streamline the checkout process and reduce waiting times, Vijetha Supermarkets offer mobile payment solutions such as digital wallets or mobile apps. Customers can simply scan QR codes or use contactless payment methods to complete their transactions, enhancing convenience and efficiency. Similarly, in-store digital signage displays, strategically placed throughout the store, provide information about on-going promotions, new product arrivals, and in-store events. This enhances the shopping experience by keeping customers informed and engaged during their visit.

Regarding marketing and promotional efforts, the retailer employs various traditional mediums such as paper advertisements, hoardings, and distribution of flyers to disseminate information about its promotions, special offers, and schemes to the customers. Furthermore, to stimulate sales, the retailer collaborates with brands to conduct product samplings aimed at providing customers with firsthand experiences of the featured products.

Lately, Vijetha has also introduced AI-powered robots to assist shoppers and streamline operations. “We have introduced an artificial intelligence powered robot at our stores, which is popular among children and acts like a magnet and helps to bump up sales. Introducing robots into Vijetha Supermarkets’ stores represents a forward-thinking approach to enhancing the shopping experience for customers and streamlining operations,” says Siddharth.

Robots are programmed to assist customers with various tasks, such as locating products within the store, providing information about promotions and discounts, and offering personalized recommendations based on customers’ preferences and purchase history. This enhances the overall shopping experience by making it more convenient and efficient for customers to find what they need.

Vijetha Supermarkets also leverages advanced technological tools to actively solicit customer feedback and foster engagement with its clientele. This multifaceted approach encompasses the deployment of online surveys, leveraging social media platforms, and employing sophisticated customer relationship management (CRM) systems. By attentively listening to customer feedback and swiftly addressing their needs, Vijetha Supermarkets perpetually refines and enhances the overall customer experience.

The seamless incorporation of technology throughout the entirety of the supermarket’s operations transcends mere efficiency; it embodies a profound commitment to adaptability and foresight. It reflects an unwavering dedication to cultivating lasting relationships with every shopper, underscoring the establishment’s steadfast pursuit of excellence.

While technology undoubtedly plays a pivotal role in shaping the modern retail landscape, the true measure of a supermarket’s success lies in the caliber of its workforce. Amidst the ceaseless march of innovation and digitalization, it is the competence, dedication, and expertise of employees that ultimately determine the efficacy and resonance of the customer experience.

Take a moment to think about how technology and human interaction work together in retail. While state-of-the-art systems may streamline operations and enhance efficiency, it is the adept guidance and personalized service rendered by knowledgeable staff members that elevate a mundane shopping excursion into an unforgettable journey of discovery and satisfaction.

Furthermore, in an era where consumer preferences are as diverse and dynamic as ever, the role of the employee transcends mere transactional interactions; it becomes an indispensable conduit for empathy, understanding, and genuine connection. Whether it’s the seasoned cashier who greets each customer with a warm smile, the product specialist who offers insightful recommendations tailored to individual preferences, or the diligent manager who resolves queries with grace and efficiency, it is the human element that infuses a sense of authenticity and trust into every interaction.

Vijetha’s store operations are overseen by a highly experienced management and supported by a talented and dedicated base of over 3,500 employees who come with a rich knowledge of various product categories and with vast experience in different fields. “We are proud to say that Vijetha Supermarkets is a well-structured organization with the right people in right place. We impart continuous employee training to ensure a knowledgeable and motivated staff capable of delivering excellent service, adapt to market strategies, and navigate evolving consumer preferences and market trends. Continuous training programs keep employees updated on product knowledge, sales techniques, and customer interaction skills,” avers Sandeep.

He adds: “Today, each category is getting more refined and is further expanding into sub-categories. The store and the staff need to be updated from time to time. And a constant check on them is required to give the best of experience and ease to our customers. We give in-house and external training to the staff, supervisors, branch managers, and in-charge personnel and offer them the resources to carry out their responsibilities with updated skills and technology assistance.”

Ultimately, while technology may serve as a formidable ally in the pursuit of retail excellence, it is the unwavering dedication and expertise of employees that serve as the bedrock upon which the success of a supermarket is built. In this symbiotic relationship between human ingenuity and technological innovation, lies the true essence of a truly exceptional shopping experience.

Targets for the Future

Having established a formidable presence in the grocery retailing business, Vijetha Supermarkets has now embarked on an exciting journey of diversification and expansion, venturing into an array of complementary sectors to further solidify its position as a leader in the retail landscape.

The success of Vijetha Supermarkets has paved the way for ambitious forays into new territories, including the hospitality sector, where the company endeavors to redefine the standards of excellence in hotel accommodations and hospitality services. Furthermore, the establishment of cold chains ensures the seamless preservation and transportation of perishable goods, underscoring Vijetha’s commitment to quality and freshness.

Not content with resting on its laurels, Vijetha Supermarkets is now making its presence felt in bakery and confectionery, promising delectable treats and culinary delights to tantalize the taste buds of patrons far and wide. Going ahead, the retailer has plans for the expansion of its retail footprint, with the launch of new super stores and hypermarkets poised to revolutionize the shopping experience.

“Vijetha Supermarkets is now expanding into other sectors such as hotels, cold chains, hospitality services, and bakery/confectionery. We plan to open more number of outlets with a bigger size. Going forward, we will open new super stores and hypermarkets. From 1 store in 1999 to 109 stores in 2024, we have plans to reach 150 stores by 2025. We are targeting a turnover of Rs. 850 crore in FY 23-24, up from Rs. 725 crore reached in the previous fiscal,” says Jagan Mogan Rao.

With a steadfast commitment to innovation, quality, and customer satisfaction, Vijetha Supermarkets stands poised to chart new heights of achievement in the ever-evolving landscape of retail excellence. With revenues soaring and growth on the horizon, the journey of Vijetha Supermarkets is far from over.  

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