89 Hopcoms outlets have closed in 5 years, and there is no strategy to reverse the trend

Business at the best performing outlets goes up to ₹40,000 on a good day while, at the other end of the spectrum, some outlets do not even record ₹500 in a day

Most old Bengalureans at one time bought fruits or vegetables from their trusted neighbourhood Horticultural Producers’ Cooperative Marketing and Processing Society (Hopcoms) shops. But, in the recent past, Hopcoms has not opened any new shop. On the other hand, existing shops have downed shutters.

In a world of online marts, malls and private vegetable and fruit vendors, there is a question mark on the future of the co-operative society that was formed for the benefit of farmers. 

In the last five years, 89 Hopcoms outlets have closed, as they were not economically feasible, sources said.

“We have closed many old branches as we were unable to stand up to the competition in those areas. Some of our staff members are also resigning. Customer-salesman rapport is one of the important factors that influences sales. If salespersons keep changing, we cannot maintain the customer base, or get new customers,” explained Umesh Mirji, Managing Director, Hopcoms. 

There are also other problems — not being able to find spaces for outlets (most outlets are on spaces leased by the BBMP), lack of funds, franchisees not succeeding, competition from pushcart vendors who sell for lesser prices at doorsteps.

“Around 20 outlets are run by franchisees. Some franchisees had to close shop after incurring losses,” Mr. Umesh said.  

However, all is not lost yet. Out of 201 outlets in Bengaluru, 50 seem to be doing well. Outlets at Jayanagar, Malleswaram, J. P. Nagar, Indira Nagar, Jeeva Bima Nagar, K. R. Puram are among the top performers. The business at the best-performing outlets goes up to ₹40,000 on a good day while, at the other end of the spectrum, there are outlets that do not record business of even ₹500 in a day.