Crossroads: Retailing Lessons
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Case Details:
Case Code : BSTR005
Case Length : 6 Pages
Period : 1999 - 2000
Organization : Crossroads, Piramal Enterprises
Pub Date : 2001
Teaching Note : Available
Countries : India
Industry : Consumer Goods & Services
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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"I was shocked by the new rules. When questioned, the security guard said it was for my own safety. This was the way to keep the phaltu crowd away."
- An angry Sunday shopper.
"Not even Harrod's stops people from entering the store. There could have been better ways to screen out undesirable elements."
- Vineet Chadha, Director, Celebrations.
Introduction
In the first week of August 2000, visitors to Crossroads, a retail mall, saw a polite notice informing them that a mobile phone, a credit card or a club membership card would act as an entry ticket.
People without these new age accessories would have to pay Rs. 60 as entry fee, for a coupon redeemable against purchases made at any time. Within days, the number of visitors to the mall fell by more than 70%. Many of the visitors felt it very insulting to prove that they possessed a credit card or a mobile phone. Traffic continued to fall even after the ban was lifted two months later. It hovered around 6000-8000 a day, as against the initial walk-ins of 30,000-40,000 on weekdays and up to a lakh on weekends. Disappointed with the low traffic, Fountainhead, a bookstore, opted out of Crossroads. Shyam Ahuja, famous for his carpets and dhurries, vacated two-thirds of the space. Other unhappy tenants too, started renegotiating rentals.
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The 'Shoppertainment'
Crossroads, situated near Haji Ali in South Mumbai, and spread across 1,50,000 sq.ft., was launched by Piramal Enterprises1 in September 1999.
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The chairman of the group, Ajay Piramal aimed at introducing the concept of 'shoppertainment' to the Indian consumer through Crossroads, complete with food courts, recreation facilities, and a large car parking space. The mall was created on four levels, offering jewelry and children's goods; gifts and women's wear; houseware; and men's wear. Prior to the establishment of Crossroads, Piramal Enterprises had set up a Roche factory2 at that location. To utilize the real estate in a better way, the group considered many options with the help of consultants McKinsey and KSA Technopak. The surveys by these agencies revealed that the urban population always sought a shopping environment that let a family spend time together. |
Crossroads: Retailing Lessons
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