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Hypermarket Industry

Hypermarket Industry

So, What Exactly is a Hypermarket?

Oftentimes it is perplexing to grasp the true nature of the retailing format merely by the name assigned to a store. This occurrence is more common in local markets. Terms like ‘supermarket ’, ‘convenience store’ ‘departmental store’, or even ‘hypermarket’ are attached with store names. It is well known that these are all diverse formats of retailing. But it is also true that many retail brands exist in different retail formats. It is common among the big names in the retail space to operate in such multifaceted forms.

So, what exactly are hypermarkets? Hypermarkets are self-service, warehouse-like retail stores. Specific stores of Walmart or Decathlon fit into this description. The internal physical structure of a hypermarket looks like a warehouse but the visual appearance is like that of any supermarket or large grocery store for both small ticket retail selling as well as bulk selling.

But why is the concept of hypermarkets even there? Hypermarkets emerged to serve as one-stop stores with heavy price discounts for both individual and bulk-level purchasing. They are massive in size with extensive merchandising beating all other forms of retailing. The bulk availability of goods and heavy discounts serve as an incentive for small businesses at the local level to procure from hypermarkets.

Because of their enormous floor area requirements, it is common to find hypermarkets located on the city outskirts. This feature of hypermarkets is a deterrent for customers when it comes to routine and urgent purchases. A rational choice for them then is to buy from the local markets or even try online.

This is what hypermarkets are at an intended, accepted, and organised level.

A Peek into the Hypermarket Industry on the Global Scale

As an industry, hypermarkets will flourish albeit at a slow speed on a global scale. The industry is already competitive in developed countries. This will offset the growth propelled in the rest of the world. Speaking of the rest of the world, the growth rate will be higher in emerging regions like MENA, South East Asia, and South America. These are growing economies with rapidly rising urbanisation and mushrooming of SMEs. Successful global retail brands will seek to establish their own footing via direct investment or collaborate with well-networked domestic and regional retail brands.

To better comprehend the business of hypermarkets, let us examine a few renowned brands in the hypermarket space.


Walmart is the largest hypermarket brand in the world. It is also the largest retail company in terms of revenue touching approximately USD 600 billion surpassing even the likes of Amazon. Today, Walmart is spread over a network of 10,500 stores and clubs in 19 countries in addition to its eCommerce channel. But that is not how things started for Walmart. In 1962, the first Walmart store was opened by Sam Walton in Arkansas, USA. However, it was in 1988 that Walmart opened its first Supercenter in Washington. The features of a supercenter are almost the same as that of a hypermarket.

Everything smart that Walmart did to explain its current dominance in the global hypermarket space cannot be covered within a few words but here are two examples. Walmart introduced computerised POS systems in its stores as early as the 80s. About the same time, Walmart had its operations supported by voice, data and video communication and that too through its own private satellite communication system in the United States. These kinds of decisions show how Walmart created the necessary systems required to augment massive operations like the ones involved in running hypermarkets.

Schwarz Gruppe

What brings Schwarz Gruppe into focus is its massive network of 13,500 stores worldwide surpassing even that of Walmart. The group’s revenue levelled heads with USD 141 billion in 2021. Owned by Schwarz Gruppe, Kaufland is a German hypermarket chain based out of Neckarsulm, Germany. Kaufland is one of the two food retailing brands of the Schwarz Gruppe. While Kaufland stores operate only in Europe, Lidl (the other one) has additional operations in America. Lidl stores came into existence in 1973 and Kaufland in 1984.

Some of the reasons that make Kaufland a unique brand are its extensive merchandising, competitive pricing, and customer orientation. It is recognised as a brand that focuses on quality, sustainability and eco-friendly options.


Originated in 1902, Target is another big American retail brand. The year was 1995 and the place was Nebraska where the first SuperTarget store was opened. Currently, Target’s revenue clocks over USD 100 billion. The brand has a massive network of 1900+ stores in the United States. We could not confirm the presence of any Target store outside of the USA.

Target’s strategy to harness private-label brands makes its business model a highly effective one. Private-label brands help derive better margins. However, it does not work without ensuring quality and the presence of trust and loyalty on the umbrella brand in question.

A Big Customer Base Required

A big customer base is indispensable for the growth and survival of hypermarkets. A large customer base helps build reliable sales traffic and a dependable stream of revenue. Without sufficient sales and revenue, hypermarkets cannot thrive. A steady flow of customers and clients helps hypermarkets expand their merchandising portfolio, bring value-added services, and improve their infrastructure. This, in turn, helps build a strong transactional relationship with buyers.

Achieving economies of scale is another critical reason for hypermarkets to have a larger customer base. Bulk buying and selling enables hypermarket brands in price negotiations with suppliers and pass on the derived benefits to customers.

Lack of real estate in good locations

Almost anywhere in the world, finding commercial real estate space for establishing big businesses like hypermarkets or factories is slowly attaining the status of a dream coming true. Here we are not even talking about the rentals or leasing costs, the problem is even getting the space at a suitable location. The consumption of land resources for both residential and commercial purposes has swelled up like wildfire touching the borders of the countryside starting from urban boundaries. Without the support of local and regional factors and government initiatives to promote business, the only solution left to hypermarket brands is to make the best use of what is available to them.

Requires Big Space with High Rentals

Now coming to the rental factor, the available spaces come with a premium price tag. If there are no regulations, prices quoted could be just about anything. Given the demand-supply disparities in land resources in any modern location that suits the hypermarket business case, the buyers (retailers) are often at the receiving end. On the other hand, it is natural for real estate owners to accept the highest bidder. Even if such a space is acquired, there are business implications attached to it. Real estate is a long-term investment that is usually written off over time. The higher the investment is, the longer will be the time required to write it off. Where high rentals are involved, the operating costs swell and affect profitability.

No way to do it Small

There is no way to start and run a hypermarket on a small scale. Just in terms of floor area requirement, a hypermarket can range between 54,000 to 161,000 square feet. Inventory investment can run up to millions in value with merchandising mix extending in thousands. Starting a hypermarket business needs big investments, robust operations systems, and world-class standards in infrastructure and delivery of customer experience. And lack of or inability to bring any of these elements makes hypermarket business a distant subject for commoners. The role of governments and financial ecosystems is crucial when it comes to starting large-scale businesses. The business planning and setup-related affairs can be addressed with the help of hypermarket business consultants.

Influencing Consumer Behaviour

Conducive market statistics are no guarantee for footfall; hypermarkets have some specific reasons. Why would an individual customer shift their loyalty from a local grocery or departmental store to a newly launched hypermarket? Are they getting any extra benefits? Is that benefit big enough to make this shift? The same applies to small businesses. Unless they have a more compelling reason, they will not shift from their existing systems.

But there are also a couple of factors that work in favour of hypermarkets. One is the novelty of the idea itself. Hypermarkets are unlike what people might have seen or experienced earlier. Secondly, people can plan their purchases from hypermarkets if that can save them from the traffic woes and relish a peaceful shopping experience away from the cacophonies of the urban and drill of the mundane.

Why YRC as Consulting Partner for Hypermarket Business

YRC is a retail and eCommerce consulting firm with expertise in business management and growth solutions. With 11+ years in business and a budding global footprint, YRC has helped over 500 clients in 12 countries across 20+ retail verticals. The range of our services includes SOPs (BPMN 2.0), Market Research, Validation of Business Models, Franchise Consulting, and Process Automation. Our projects are handled by expert retail consultants with strong professional and project exposure. Our services and solutions are developed and implemented following sets of planned and proven principles and processes. In hypermarket business consulting, we offer assistance in business planning and implementation of business plans.

Market Research

We bring our 11+ years of experience to the table in developing curated market research plans based on the unique requirements and specifications of clients. In conducting hypermarket market research, a planned and methodical approach is followed that includes the use of cutting-edge digital applications. CTAs and recommendations are also presented for a better understanding of markets and to help clients make more effective planning and strategic decisions.

Locational Analysis

Businesses can make decisions on store location with a lot more certainty when the pros and cons of each option are available in comparable terms. Given the constraints in finding good sites and high rentals, we help clients make more informed decisions in the selection of locations in light of associated business implications. In hypermarket location analysis, our assessments are aimed at helping clients evaluate the right locations based on parameters relevant to their business vision and objectives.

Business Model Development and Validation

In hypermarket business model development, we help clients identify and map strong, unique, and sustainable value propositions. In hypermarket business model validation, we assess conceived business models to evaluate their strength and sustainability to endure in the prevailing business environment and suggest measures for improvisations. In both cases, our experts define the value chains mapping the best route to create and deliver the identified value propositions to the target segments.

Layout Planning

Layout planning is not a stand-alone decision. It influences and is influenced by other important factors like location, volume of space, visual merchandising, organogram, and marketing objectives. For example, a more distant location but with a bigger space may be selected to provide a bigger physical appearance to a store. This affects the layout planning of the store. In hypermarket layout planning, we present multiple layout options keeping in mind the unique constraints, requirements and specifications of clients.

Operations Planning and Adoption of Process Automation

Hypermarkets cannot thrive in a poor operations environment. The sheer volume of business is enough to justify it. That is why a majority of large-scale retailing enterprises rely on SOP-based operations planning and process automation solutions. SOP development & implementation assistance for business process and operations management is one of our frontline capabilities. We not only develop and help implement hypermarket SOPs but also assist in the identification and selection of hypermarket process automation solutions.

Financial and Commercial Planning

Since hypermarkets involve big investments and operating expenditures, the financial and commercial aspects of starting and running one cannot be treated under normal rules of prudence and expertise. Our 11+ years of experience working with retail enterprises of all sizes tell us that the stakes are way too big in the hypermarket business.

In financial and commercial planning for hypermarket businesses, we measure and present the business commercials required to take business ideas off the table and bring them into the realm of commercial possibility. Important areas covered in these assessments are demand forecasting, purchase planning, sales and revenue projections, analysis of CAPEX and OPEX requirements, estimated P/L statements, analysis of ROI and break-even periods, and other parameters as applicable.

To know more about our hypermarket business consulting services or if you want any business-related query addressed by one of our hypermarket business planning experts, drop us a message and we will be happy to reach out to you.


What Type of Business is a Hypermarket?

Hypermarkets are warehouse-like, self-service massive retail stores. Specific branded stores of Walmart or Decathlon fit into this description. The internal structure of a hypermarket looks like a warehouse but the appearance is like that of any large supermarket or large grocery store for both small ticket and bulk selling.

How to Convert my Supermarket to a Hypermarket Business?

If it comes down to the comparison between the two, hypermarkets and supermarkets are vastly different concepts. For example, you can have a very large SUV but that still would not be a truck. For analogy, hypermarkets are like those trucks and all other retailing formats like grocery stores, departmental stores, or supermarkets are smaller vehicles.

If it is about converting a supermarket to a hypermarket, some of the important considerations to be critically examined are:

  •         Is the floor space available suitable enough for a hypermarket? (Also think in terms of extensive merchandising requirements)
  •         Is it possible to give massive discounts as hypermarkets do?
  •         Is the customer base (individuals and businesses) large enough to create the sales volume necessary to sustain the business commercials of a hypermarket?
  •         Are there suppliers/manufacturers who can provide inventory in large volumes at highly discounted rates?

·         Are the necessary logistical infrastructure and services available to support the inventory appetite levels of a hypermarket?

Let’s Talk!

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    We work only for Visionaries.


    The idea of having Ecommerce Consultants on-board from the beginning itself points towards reducing the involvement of the promoters in daily operations. Ecommerce Businesses willing to be a brand reaping profits & sustaining the competition must ensure that most of their processes should be automated. The more the manual intervention, the more would be the errors.

    In Ecommerce business, you get only 1 chance to impress the customer & if you mess up there, you lose the customer for long.

    Process automation in respect to all the activities pertaining to customers from order receiving to order fulfilment is a must for a seamless experience for the customers.

    Task Management is another grey area where most deadlines fail as 90% of the tasks are assigned manually & are forgotten, unheard, misunderstood or mistaken.

    YRC Team of Ecommerce Management Consultants helps to make maximum of the processes system-driven to ensure minimalistic manual intervention.


    No matter how good your product is, the customer would know only if it looks good.

    Photography includes the following steps:

    • Cataloguing your products
    • Cataloguing your images
    • Backup your images (A few cloud storage solutions include Dropbox, Google Drive, Bitcasa, Apple’s Cloud Storage etc.)
    • Choose the right camera & lens (You may also outsource the photography to a third party agency)


    Digital Marketing includes SEO & SMM. SEO i.e. Search Engine Optimization includes activities like back-linking, meta tags, blog-writing etc. to ensure your website ranks on the 1st page on Google Search.

    Next comes SMM i.e. “Social Media Marketing” which as the name suggests including promoting your products on all the social media sites, email marketing, influencer marketing & several other BTL activities.

    These activities are going to be recurring & would decide the traffic on the website, the conversions, whether the right target market is tapped, the likes, the views, the orders, the reviews & much more. YRCs Ecommerce Consultants create a budget for digital marketing right from pre-launch to launch & for each month thereafter.

    Building digital marketing strategies in coordination with the agency, selecting them to signing them off would be the role of YRC.

    This ensures seamless coordination, detailed interactions & desired execution as it is always advisable to work with a single agency than multiple of them.


    Selection of the right software for smooth functioning of back-end operations right from production to webstore display would be suggested and integrated by YRC Team.

    YRC’s Team defines SOPs of Product Movement, maps it with the locations & people. They then create a blueprint of all the features required in the software & help in shortlisting & selection.

    IT Integration involves connecting your offline inventories with real-time online webstore so when a sale occurs, inventories get deducted real time across offline as well as online platforms.

    This helps in accurate inventory management, maintaining the MOQs, re-order levels & achieving the optimum inventory levels.

    Some popular software include unicommerce, viniculum for your front-end website management & Genisys for your entire back-end Purchase, Production, Accounting, Invoicing etc. management.


    • How many cities or countries you wish to sell in?
    • Where should your Warehouse be located?
    • Should you have one warehouse in each country or city?
    • Should you be having your own delivery team in your base city?
    • Would the 3rd party vendors be reliable? What happens when they lose or misplace your product during delivery?
    • How should I manage the logistics if my goods are coming from different countries?
    • How should the goods be stored and barcoded?
    • How much space do I require for warehouse?
    • I am sure several such questions must be haunting you while you think of starting your own fashion ecommerce brand.


    At YRC, our warehousing and logistics experts can help you devise a strategy for all of the above mentioned queries and much more.

    We design the layout of the Warehouse considering the inward, goods processing, software entry, barcoding, outward, goods return, scrap storage, goods stacking & much more.

    Logistics route plan is devised considering the manufacturer to your warehouse and from there to last mile delivery locations.


    This Step involves 03 distinct parts:

    Part 1: Choosing the right Platform:

    From several platforms available in the market right from Shopify to magento, woocommerce, prestoshop, wordpress etc. you must choose the one that fits best for your business

    Part 2: UX Designing:

    “UX” denotes User Experience, which if put in simple language is building the functional requirements of the website.

    UX Designing includes designing the features required in the website, customer journey map, website features, the browsing features, navigation features, ecommerce order management process flow, checkout cart features, catalogue management, ecommerce payment system, cross selling features & much more.

    “As per statistics, 68% of the customers abandon the carts before payment”

    An interesting UX ensures the customer sticks on to the website for a longer time.

    Part 3: UI Designing:

    UI stands for User Interface, which means designing the look and feel of the website. UI includes using the right colours, elements and the entire aesthetics of the website.

    A good User Interface ensures the user completes the task that he has come for. It navigates the user through the journey of the brand in the simplest but most effective way.

    The UX designer maps out the bare bones of the user journey; the UI designer then fills it in with visual and interactive elements.

    If User experience is the bare bone, user interface wraps it up with an attractive cape.

    At YRC, our team if experts can help you develop the entire User Journey to ensure it is engaging!


    This step follows the “Designing” Phase, whether you have an in-house design team, freelance designers or an outsourced design company. It is one of the most exciting phases, as here you see your designs turning into products & your ideas turning into reality.

    In most start-up cases, production is outsourced i.e. brands tie-up with the established manufacturers/ job-workers to get their products manufactured.

    Sampling involves multiple 04 Stages, Fit-Sample, Prototype Sample, Pre-Production Sample & the Production Sample.

    Prototype Sample is the first sample provided to the buyer. It can be in any fabric/ colour. This sample is just to understand whether the product design looks equally great in reality.

    Fit Sample, as the name suggests is prepared to check the fit of the garment i.e. the various sizes, length, width etc.

    Pre-production is made by the actual production line. Here the stitching quality and other aspects related to manufacturing are checked. This is the last stage where rejection can be accepted.

    Production Sample is made before the production which is the replica of what is going to be finally produced.

    Once you are through with all this, you are good to go ahead & get your goods manufactured.


    Product Designing or Sourcing is the heart of the Ecommerce Fashion Brand.

    Product Designing / Sourcing can be done in several ways, as follows:

    • In-house Design Team
    • Freelance Designers
    • Outsourced Design Team
    • Ready Product Sourcing (From Manufacturer or Wholesaler)

    At YRC, we evaluate your business strategy & business model to arrive at the decision, which of the above ways would be best-fit for your business. In certain cases, product sourcing may be a combination of the above.

    These are the people who are going to build your brand! Whether they are the designers or merchandiser, your brand look is going to be in their hands.

    If you are designing each garment from the scratch, the sourcing would play crucial role in developing design identity of your brand.

    Sourcing includes fabric, trims, lining & all the raw material required to build the garment.


    Branding is the “Look of the Brand”, right from logo to tagline, the colours used, the brand story, the brand communications on social media, the packaging & all the other aspects which speak directly or indirectly to the customers. Branding constitutes the look & feel of the brand & hence must be thoughtfully planned to match with the product that we are selling.

    Branding must appeal to our target audience. Example : A golden colour logo depicting finesse, art, richness, premium, however beautiful it may be individually cannot go with a brand selling affordable kids wear products. So, your logo must be in-line with your brand positioning, whether you are an expensive brand or a luxury brand or a value for money brand, it must be depicted from your “Branding”.

    It is an integral part to attract the target audience.


    Organogram is the “HR Blueprint” of the business which is created at the onset, to map out the team required across each function at various stages of the business. At the launch, only key people need to be got on board to ensure the project gets started & at this stage, all of them need to multi-task. Similarly, certain financial as well as operational goals are set for addition of the further team. Example, for the operations team, we hire 1 operations manager during the pre-launch phase & we add 1 more only when the business kicks-off & we reach a volume of selling more than 1000 pcs/ month or a turnover of more than 0.1 million USD.

    SOPs are Standard Operating Procedures, a bible to run the entire organization right from Sales, Purchase, HR, Order receiving to Order fulfilment, Inventory Management, Accounts, Warehouse, Logistics, Supply Chain, Production & all the other relevant functions for the business. Business must be organized from its first day of operations; only then the tasks can be delegated.

    At YRC, we design the organization structure, the processes, and approximate time taken to execute each process, job profile of every member within the organization, their KRAs, KPIs & the Reporting Structure.


    Critical Pathway Analysis (CPA), is a project management technique which cannot be overlooked while launching an ecommerce fashion brand. Brand launch process is cumbersome with multiple inter-dependent & time-bound tasks involved, which need to be tracked to ensure the project remains on track.

    CPA outlines key tasks across the project, their turnaround time (TAT) & the dependencies of tasks upon each other. It identifies the sequence of tasks, their interdependent steps from inception to completion, their criticalities, and their dates of onset, target dates of completion along with the key responsible person for the respective activities. Critical Pathway helps in understanding the unimportant & not urgent tasks which may jeopardize the execution of the project because of an unexpected snag! It also maps out the potential bottlenecks which might be posed because of the dependencies of tasks upon each other & cases where the next task cannot be commenced before the completion of the previous one.

    CPA detects the minimum & the maximum time involvement of a particular individual or team to execute the task, thereby arriving at the overall deadlines associated with the project.

    At Your Retail Coach, we design the Critical Pathway & review it periodically to ensure the project is on track & the progress is measurable.


    Business Strategy includes the vision, mission, goals, business model, business plan & strategy for all the functions within the organization.

    Business Strategy is a well-defined plan that outlines who, what, where, why, how & when for the company; for example, who would be the target market, how to attract the target audience, when to launch new products, where to operate from, how to handle competitors, what would be the USP, what would be long term goal of the organization & several other answers to the 5Ws of Strategy.

    Business Strategy aligns the organization towards a common goal. Business SWOT helps company to identify & overcome their weaknesses & focus to sharpen the strengths. Business strategy forecasts future risks and helps business in building skillsets to overcome the potential threats.

    YRC’s Business Plan focuses on creating a “Blueprint” of the business, thereby deriving the feasibility of the concept & gauge whether the opportunity is lucrative to invest time, energy & effort. Business Plan creates cash flow understanding i.e. building inflow & outflow cash projections from Week zero to week 60 i.e. 05 year projection. Business Plan calculates the capital investment, operating costs, one-time costs, recurring costs & all the other numbers relevant to obtain the breakeven sales, return on investment, return on capital, internal rate of return & several other ratios. Business Plan is also one of the important requirements if you are targeting the “Investor Route”. Fund raising becomes extremely transparent & channelized. With business plan panned out clearly, the business will know until what point must it be stretched & where to stop, which reduces the probability of unplanned investments.


    Starting the concept of Ecommerce Fashion brand with Market Research ensures we get detailed understanding of the industry & this research report also acts as a social confirmation for your concept. Market Research helps in understanding the target locations, their population, potential online buyers for your product, competitors for each category, and top selling products of the competitors, competitors’ price range, offers & their responses & much more. Market Research helps in thorough understanding of your brand position as compared to our competitors. It helps in identifying gaps in the market, in your category along with the scope of the said product in the desired market. This will help in validation of your concept & prevents you from making the same mistakes as your fellow brands, eventually saving your time, energy & efforts. This phase is also a make or a break phase, as the market research study may at-times come up with some eye-popping numbers & statistics which might compel you to re-think on your product or category that you are planning to sell or alter your entire concept itself!! Market Research Reports analyse the competitors’ webstore for their traffic, conversion & sales. This is extremely valuable information to derive our inventory budgets & projections, which takes us to our next phase.