Crossroads: Retailing Lessons


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Case Details:

Case Code : BSTR005
Case Length : 6 Pages
Period : 1999 - 2000
Organization : Crossroads, Piramal Enterprises
Pub Date : 2001
Teaching Note : Available
Countries : India
Industry : Consumer Goods & Services

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts

The 'Shoppertainment' Contd...

Keeping this in mind, the group developed the Crossroads model. Crossroads was Ajay Piramal's answer to the malls like London's Harrods or New York's Macy's. (Refer box).

The shopping arcade of the mall, spread across 60,000sq.ft., offered 125 top Indian and international brands in fashion, jewelry, footwear, watches, etc. It also had an in-house department store, Pyramids, that offered about 150 brands. Pyramids was the biggest store in the mall, followed by Pallazzio, which had 80 brands of jewelry, watches, and other accessories. Other brands available in this arcade were Levi's, Lee Cooper, Adidas, Lacoste, Swarovski, Reebok, Nike and Benetton. Outlets of Indian designers like Rohit Bal, Ritu Beri, and JJ Valaya were also a part of this arcade. (Refer Table I). The mall had a plethora of entertainment options at the Jammin', which covered three floors. It offered simulation games, bumper cars, pool tables and a ninepin bowling alley...

At The Crossroads

With such huge crowds, the mall's infrastructure came under immense pressure. Escalator queues were long and aisles became crowded.

Moreover, these huge crowds didn't comprise of the posh clientele that Crossroads had targeted. Regular customers started enquiring when the crowds would be low so that they could shop undisturbed. To tackle this problem, the management decided to restrict entry on weekends. The management had put a notice at the entrance stating that one had to produce a credit card, cellphone, visiting card, or a student ID card to gain entry. Or they had to pay Rs.60 as entry fee, refundable against purchases at any time. Said Chadha, "We argued against it, but the management sided with more premium tenants like J.J. Valaya." Many people turned back, insulted that they had to prove that they had a credit card or a cell phone...

 

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