Coffee Day enters partnership with Japanese retailer
Indian cafe chain Coffee Day has partnered with Japanese sales-floor support-service business Impact HD to grow its retail network in India.
The joint venture plans to rapidly build market share in the region’s neighbourhood retailing sector, launching a minimum of 450 Coffee Day Essentials branded stores in quick succession.
Coffee Day Group holds a 51 per cent controlling share in the joint venture.
“With about three times the population of Japan in the same standard of living as the Japanese, the multi-retail market environment in which food and daily necessities are purchased on a daily basis remains unexplored,” read a statement released by Impact HD. “In India, kirana stores accounts for 98 per cent of the total, and the remaining 2 per cent are hypermarkets and supermarkets that incorporate foreign capital and know-how.”
The joint venture will convert lagging Cafe Coffee Day cafes into Coffee Day Essentials neighbourhood convenience stores.
The Impact HD JV was among the last major decisions made by Coffee Day Group founder and chairman VG Siddhartha before he took his own life in July.
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