Japan’s Impact HD to help Indian cafe chain create convenience stores
NEW DELHI, NNA – Japanese consulting firm Impact HD Inc. will help India’s largest coffee shop chain Café Coffee Day convert some of its outlets into convenience stores amid robust growth in the retail sector.
The company said on Monday that it planned to buy a 49 percent stake in Coffee Day Consultancy Services Pvt. Ltd., a unit of Coffee Day Global Ltd., for $15 million.
The Tokyo-based marketing and sales consulting company has been providing services to Godfrey Philips India Ltd., which owns the 24 Seven convenience store chain, a person familiar with the company told NNA.
The president and some executives at Impact are former employees of Seven-Eleven Japan Co., Japan’s largest convenience store chain, and they have consulted retailers in India and Indonesia, the person said.
Of the 2,630 Café Coffee Day shops, more than 400 will switch to convenience stores in the first year of the partnership between the Indian and Japanese firms, he said.
Impact HD would not disclose the name of the new convenience store chain or its sales target.
The Indian retail market grew at a compound average rate of 13.9 percent every year to $795 billion between 2011 and 2017 and is expected to rise 10.8 percent annually between 2017 and 2021, Deloitte Touche Tohmatsu India LLP said in its October 2018 report.
Seven-Eleven Japan said in February that it had sealed a master franchise agreement with India’s Future Retail Ltd. to use the 7-Eleven brand in India, where mom-and-pop corner stores dominate the retail sector.