What is a hypermarket?
A hypermarket is a type of retail store that combines a grocery supermarket and a department store. It is usually a very large establishment that sells a wide variety of products such as food, clothing, and appliances.
Hypermarkets allow shoppers to find everything they need in one place. The concept of this big box store is to offer consumers all the goods they demand under one roof. Some of the most famous hypermarkets in India are Reliance-Fresh, Big Bazar, and D-Mart.
Understanding Hypermarket
Big box retailers are large stores that offer their customers a wide range of products, often at low prices due to their high sales volumes. They can be general merchandise stores selling goods across many categories or specialty stores focusing on one or a few product categories. They usually operate in large chains and are often located on the outskirts of big cities. They achieve economies of scale by putting pricing pressure on vendors, potentially getting discounts on goods their rivals cannot access. This practice enables hypermarket companies to offer merchandise at cheaper rates than their competitors.
The combination of a full supermarket with a diverse variety of merchandise in department stores and other types of retailers can pose a serious competitive threat to local supermarkets and other retailers alike.