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.
