Trent's StarQuik bets on inter-group synergies, plans new delivery models

StarQuik, the new online grocery portal of Tata group’s Trent, is planning to come out with new delivery models and tap inter group synergies for its business.

Currently, it has SNAP model — where it showcases 10,000 products and delivers within three hours in a 7 km radius of a Star store. 

Star is the brand name of stores run by Trent. Star is the seller and StarQuik is the buyer of the merchandise. Tata group also has a e-commerce portal for fashion and lifestyle called TataCliq.com.

“We are working on covering areas where we do not deliver. We will become significant percentage of Star stores,” K Radhakrishnan, director, StarQuik, said, without giving the current contribution to Star’s sales. 

This is the second coming for Tatas in the online grocery space. In 2015, Trent’s Fiora Hypermarkets had launched my247market.com. After it acquired management team and technology infrastructure of Gurugram-based GrocerMax, Trent launched StarQuik and shut my247market.com. “StarQuik is better equipped. One thing we have realised that there should be seemless integration between customer, store and online operations,” Radhakrishnan said. 

Now, all promotions of Star is made available on StarQuik, the loyalty card of Star is aligned to StarQuik and pricing is similar online and offline.

A key difference between StarQuik and other e-grocers such as Big Basket and Groffers is that the former picks products from stores and supplies to customers, while most other portals pick up from warehouses and distribute. StarQuik saves on the warehousing and logistics charges.

In contrast, RK Damani-promoted retail chain D-Mart launched a model where shoppers can order online and collect from kiosks or what it calls pick-up points. Currently, the model is being experimented in Mumbai. D-Mart plans to scale up its hybrid online model to cities beyond Mumbai in Maharashtra in the first phase and other states subsequently.

Reliance Retail is also treading cautiously with its online format for its grocery chain Relaince Fresh. The online operations are at present in Mumbai, Pune and Bengaluru.

Radhakrishnan said its SNAP model — selling 10,000 SKUs (stock keeping units) and deliver within three hours — is what makes it different from other omni channel and e-tailers. “The entire store range is available online,” he said.

All the data between physical stores of Star and StarQuik are integrated through APIs (application interfaces).

Radhakrishnan said customer is 100 per cent ready and shops at 2.3 times a month but are very demanding. StarQuik has 95 per cent on-time delivery and supply rates are 97 per cent, which Radhakrishnan wants to take it to 99 per cent.