Jump in online sales help Big Bazaar stay afloat amid Covid-19 pandemic

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The devastating second wave of the Covid-19 pandemic may have led to delays in the deal between Reliance Retail and Big Bazaar. However, Big Bazaar was able to sustain itself through online sales. The rise in its online selling helped the company to survive the pandemic period.

Big Bazaar CEO Sadashiv Nayak has told the media that as per early trends, around 30-35% of their customers have moved online and about 20-30% of that consists of new shoppers. Along with that, the frequency of purchasing has also gone up thrice a month on the online platform as compared to just once in a month in the physical stores.

Big Bazaar’s daily target renewed to 70,000

Earlier Big Bazaar had said that it was targeting 50,000 daily orders through its online platform. As per Nayak, that target has been achieved and the renewed one stands at 70,000 orders daily over the next two weeks. Owing to the uncertainty on reopening of malls and shopping complexes due to the pandemic, Big Bazaar won’t be opening new stores.

Future Retail, the parent company of Big Bazaar, has been facing a cash crunch for almost two years now and is under distress following litigation with Amazon over a deal with Reliance Retail. Even though the future of the deal continues to remain uncertain, Big Bazaar has come up with innovative offerings like 2-hours delivery. It is also expanding its digital team and has hired many executives to look after its technology section. Nayak expects a significant chunk of sales in the near future to come from the online platform.

Rise in online penetration

Management consulting firm Redseer expects that over 40 million new customers will begin shopping online in 2021, which is twice the number of new customers in 2020. Redseer’s associate partner Rohan Agarwal says that mobile and electronics have reached their edge in terms of online penetration, and e-grocery is the next biggest player in this market.

JioMart’s new feature

In early 2021, Tata Sons bought a 64% stake in e-grocer BigBasket, while Reliance made its debut in this space with JioMart. Reliance Chairman Mukesh Ambani said during the company’s AGM that JioMart clocked over 6.5 lakh peak orders in a single day and had been clocking 80% in repeat rates. JioMart in association with WhatsApp will roll out its new feature that will enable users to place orders using the messenger app. The order will be completed by local shopkeepers. The trial for this has commenced in certain places in Navi Mumbai and Thane.