Our main competition today is e-commerce
Long before malls and exclusive brand outlets became commonplace, there was Akbarallys, India's first departmental store, founded by Fakhruddin T. Khorakiwala in 1897. The iconic store which started as a pharmacy introduced modern Indians to the idea of all-under-one-roof convenient shopping and organised retail. But what once resonated with Mumbaikars fell silent over the years. With dwindling footfalls and declining sales the first family of retail in Mumbai had to switch gears. And that's exactly what Aiman Khorakiwala did when she unveiled the new 10,000 square foot store in Fountain, now christened Akbarallys Men.
The brand new store is now a premium multibrand store for men - a concept entirely different from its original. A shop-in-shop format, Akbarallys houses clothing and accessories from brands such as Calvin Klein, Ed Hardy, Gas, Tommy Hilfiger, Jack & Jones and Indian brands like Being Human, Indian Terrain, Spykar, Colorplus, Louis Phillipe, etc.
Spread across two levels, the store also boasts of an in-house barber shop catering to quick rooming and styling needs of men. Located in the heart of South Mumbai's financial district - Fountain - the Akbarallys building stands in this heritage area designed during the British era. Restored back to its original structure, the store's interiors in shades of black and white are minimalistic and classic. The pillars continue to bear beautiful mouldings designed during its primordial days; vintage coloured mirrors and lights, rendering an industrial look, adorn the walls.
Nivedita Jayaram Pawar spoke to director Aiman Khorakiwala on entering a new phase in retail with Akbarallys.
What prompted you to revamp an 118-year-old family store?
We were thinking of a revamp for the past 2-3 years. We knew something had to be done to arrest the falling sales. There was a year-on-year drop of 10-15 per cent from 2009 onwards. But we were still profitable. We did try to make amends by introducing new products, new brands, heavier range of sarees for women and a full fledged toy section. We also incorporated more events at the store in an attempt to engage with our customers. But the overall feel was that it was an outdated format of a retail store. Since we were selling everything from apparel to furniture and kitchen appliance in a 10,000 sq. ft. space we were not able to do justice to any one category. People missed the variety that malls offered in a more enhanced shopping environment. We still had the advantage of location - we are in the heart of south Bombay in the city's prime commercial district. So we decided to turn the store around to an exclusive men's store.
How long did the entire revamp take and what changes did the store go through?
After we decided to change the format and revamp the store we had to do away with all the merchandise. So we went on a heavy discount. It took us a month to liquidate the stocks before shutting down. We then hired an architect to design the space.
Since Akbarallys is now a men's store, what have you learnt about the male customers?
Men are real quick shoppers. They come, browse, buy and leave in 15-20 minutes. They know what they want and stick to the same brands. But when they come with their wives they seem a little bit confused and take longer. We built 15 trial rooms but they are barely used. So we are thinking of knocking down a few and converting them into shop-in shops. We also realise that South Bombay is far more sober than the rest of the city. So we might have to tweak our selection for the next season. We see mainly 35-40 year old men shop with us and would like to change that. We are now also targeting the younger crowd.
Is e-commerce a threat to your business? How do you plan to combat it?
Yes, our main competition today is e-commerce. All the brands are now available online. Talking to the brands makes no sense as its beneficial for them to be available everywhere. Why just online? Men can buy these brands from multibrand outlets or exclusive brand outlets. I have been reading up a lot on how to combat this problem. It seems the only way to deal with it is to create a great shopping experience based on service. So we have good music, serve barley water, tea and coffee to our customers. Our endeavour is to style him rather than just help him shop. In the near future we are looking at hiring an in-house stylist who will help and advice men on how to put a look together.
What were the major challenges in converting a 100-year old heritage structure into a modern retail format?
Since we are in a heritage district we couldn't do much to the original structure. The building is over 100 years old and we had to get a whole lot of permissions before we went about the revamp. The height of the ceiling was a major hindrance. We had created a mezzanine around 50 years ago and customers had to bend and walk through certain areas of the store. But you can't have an eight feet height for a premium look. The new store had to convey a luxurious image and a grand look. So we had to cut the beam and create that double height. The next step was bringing in a retail expert on board to get us the right brands, create the various sections, space allocation to each brand and category, etc.
But why only a men's store?
We initially toyed with the idea of a complete family store with apparel for men, women and children. But we realised that we may not be able to do full justice to it due to space constraints. The men's section at Akbarallys performed well all year round. Even when we increased the floor space for the section the sales continued to boom. So that provided us the confidence to change the entire store to a men's store. We also did an extensive survey which revealed that the organised men's segment was growing at a steady pace. So turning our store into a men's only store made perfect sense.
What kind of investments were involved in the revamp?
The revamp was done in a premium way and we spent close to `6000 a sq. ft. We hope to break even in the first year itself.
What about the old staff?
That was another challenge. We had staff that had been with us for over 30 years. But they didn't fit into the new format. So it was a tough call since some of them had started their careers with us and were nearing retirement age. We had to not just break the news to them but also absorb some of them in our other business. We have retained those who were relevant to the new format. Most of the staff is provided by the brands. They are all very well trained and experienced. Wall space in retail is premium, especially in South Bombay. But you have dedicated a 17-feet wall to old photos. We wanted to retain a part of who we were and the only way to do it was to create a heritage wall with images and pictures. The best part is that people relate to it. Anyone who has been a part of Mumbai has had some association with Akbarallys. And the wall is our way of keeping that association alive.
In this highly competitive retail environment what's going to set Akbarallys apart from the rest?
Akbarallys has the first Planet Fashion shop-in-shop in the country. They usually have their own EBOs. The barber shop is also quite unique. I saw the concept in a store in Europe and quite liked it. Moreover there is no barber shop in the area. We find a lot of men who have to rush to meetings and need a quick shave or haircut. It serves as a lunch hour service. The idea is to not just help men style themselves but even groom themselves. Initially we toyed with the idea of a cafe but found it too cliched. Everyone's doing it and Starbucks is right opposite.
Future plans?
We will evolve our brand selection as we go along. Future plans include introducing designers in the ethnicwear section. But they have to fit into our price points. We have plans to expand the store count through franchisees. We are looking to add a few more stores by early next year in Mumbai and tier two cities. We are currently working on our online store and it should be up and ready by next season. We are also in the process of creating a mobile application- Akbarallys men app.
What has been the biggest challenge post the revamp?
Other than getting the store up and ready in record time it was communicating to people that Akbarallys is not the old Akbarallys and that we have changed with times. It's now premium and it's a store for men. Despite all our efforts to convey this through advertising we still have women customers coming in looking for appliances and garments. So that's a challenge and it will take some time for that old perception to change.
We are heavily engaged in advertising activities to convey our new status. We are active on social media across Facebook, Twitter and Instagram. We also organise events at the store. But ultimately we are relying more on word of mouth to get people in.
What's the response to the new format?
The men are quite happy and comfortable browsing around. They are very impressed with the change. But the women are disappointed. They have been writing to us lamenting the demise of the old format where they could shop for everything under one roof. Among the various sections, the men's formals range is booming which was expected since we are in a location surrounded by corporate houses. The casual section too is picking up.
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