Can you first take us through your company journey?

We are one of the companies consisting of the retail arm of the John Keells Group, which has a 150-year history. At the moment, we have 107 outlets and we are approximately just over 1/3rd of the supermarket industry in the country. Apart from this, over the last 3-4 years based on published financial results, we have been the fastest-growing supermarket chain in the country. In a given year we open close to 20-25 stores. We underwent a major rebranding exercise in the year 2018 in order for the brand to be relevant to the evolving customer. This exercise focused on addressing the key challenges of productivity as well as an excellent customer experience. We therefore utilised best practices used globally to ensure an international level of experience in our stores.

What about the overall Sri Lankan retail industry? Can you share an overview?

If you look at the total retail industry in Sri Lanka, it is about 1.6 trillion Sri Lankan Rupees, which contributes to about 10.8% of the GDP. It has been growing at a CAGR of 3.8% y-o-y in the last three years. The per capita income is also gradually growing. So retailers, whether clothing retailers or supermarkets are looking at it as a growth phenomenon and that is the reason we are also investing a lot on the retail plant. Besides, the tourism segment has also been a growing factor. Post-war tourism has become the golden goose for the Sri Lankan economy, which will benefit the retail segment too and result in better retail investments. For example, the new One Galle Face Mall that has come up is an example of what the country was yearning for in terms of a destination to shop. In terms of the brands too, various retailers have over the last 4-5 years invested in bringing different brands into the country.

The consumer here is also widely travelled, has information at the fingertips and would appreciate the different experiences that are brought in. Overall retail is on a good footing and is about to take off. So, despite depressed sentiments regarding the market conditions, there is a lot of growth expectations from the retail industry.

How much emphasis do you give to store layout and design?

If you look at a supermarket, it is very difficult to differentiate yourself but as a retailer, the store is also the manifestation of the brand. For us at Keells, the main factor we focus on is bringing new and innovative experiences to the customer. In doing this the product, price and the place come into play. In terms of the store space, we focus on customer experience, the layout, newness, and the whole feel-good shopping aspect in the store. All these play a big role and the overall ambience that is customer friendly goes a long way. In terms of the product, freshness is a big element, besides innovation. For example, we were the first ones to bring cooked food into our supermarket.

This interview is a part of Sri Lanka Retail Yatra. Read the full interview in the January 2020 Edition of VM&RD Magazine. Also, do check out the views of other Sri Lankan retailers and industry players.