Crossroads: Retailing Lessons

People without these new age accessories would have to pay Rs. 60 as entry fee, for a coupon redeemable against purchases made at any time. Within days, the number of visitors to the mall fell by more than 70%. Many of the visitors felt it very insulting to prove that they possessed a credit card or a mobile phone. Traffic continued to fall even after the ban was lifted two months later. It hovered around 6000-8000 a day, as against the initial walk-ins of 30,000-40,000 on weekdays and up to a lakh on weekends. Disappointed with the low traffic, Fountainhead, a bookstore, opted out of Crossroads. Shyam Ahuja, famous for his carpets and dhurries, vacated two-thirds of the space. Other unhappy tenants too, started renegotiating rentals.

The chairman of the group, Ajay Piramal aimed at introducing the concept of 'shoppertainment' to the Indian consumer through Crossroads, complete with food courts, recreation facilities, and a large car parking space. The mall was created on four levels, offering jewelry and children's goods; gifts and women's wear; houseware; and men's wear. Prior to the establishment of Crossroads, Piramal Enterprises had set up a Roche factory² at that location. To utilize the real estate in a better way, the group considered many options with the help of consultants McKinsey and KSA Technopak. The surveys by these agencies revealed that the urban population always sought a shopping environment that let a family spend time together.