In an exclusive interaction with Adlin Pertishya Jebaraj, correspondent of Finance Outlook India, Mirsa Habib K S, Finance Manager at Lulu Group Karnataka, regional office at Bengaluru, delves into the complex financial dynamics of omnichannel retail expansion in India. Drawing on his extensive experience in retail financial management and performance optimization, he outlines the strategic challenges and opportunities that define the post-pandemic retail landscape—from inventory synchronization and multi-channel pricing strategies to the integration of AI-driven analytics and sustainable growth models. Mirsa Habib K S also shares his expert perspective on the future of omnichannel retail finance, emphasizing the role of automation, dynamic pricing, and data-driven decision-making in creating a more efficient, profitable, and customer-centric retail ecosystem.
How do you see the shape of the omnichannel retailing model evolving in India, particularly during the post-pandemic era of consumer behaviour shift?
The retail landscape in India is undergoing a transformative shift, driven by evolving consumer behaviour and rapid digitalization. With our presence across Lulu Hypermarkets, Lulu Connect stores, Lulu Fashion outlets and REO fashion store, and Lulu Daily, convenience stores at major malls including Lulu Mall Rajajinagar, we are at the forefront of this omnichannel revolution.
The omnichannel retailing model in India has evolved significantly post-pandemic, driven by a shift in consumer behaviour toward seamless, integrated shopping experiences. Consumers now expect flexibility to browse online, verify inventory, and purchase in-store after checking digital promotional channels. We have observed that 96% of shoppers research products online before purchasing, and 46% check in-store availability digitally before visiting. This trend is evident across our locations in and around Bengaluru.
Our omnichannel strategy integrates platforms for our physical stores, ensuring consistent customer experience and attracting significant footfall. During our End of Season Sale (EOSS) from July 3rd to 6th, 2025, we extended shopping hours until midnight across all Bengaluru outlets to accommodate both in-store and online-to-offline (O2O) shoppers. The addition of onsite bidding for electronics starting at one rupee enhanced engagement across all locations, promoted through digital marketing platforms daily, particularly at our hypermarkets where tech-savvy customers leveraged our digital platforms. This hybrid model, combining experiential in-store entertainment, reflects the post-pandemic demand for convenience and personalization, positioning us as leaders in India's omnichannel retail evolution with phygital shopping experience.
What are the fundamental financial issues confronted by omnichannel retail companies in times of strong growth?
Omnichannel retail's rapid growth presents financial challenges, including high operational costs, inventory synchronization, and maintaining profitability across channels. We face significant expenses in integrating online and offline operations. The cost of maintaining real-time inventory visibility across all our hypermarkets is substantial. Additionally, competitive pricing pressures in Bengaluru's crowded retail market require careful balancing to avoid margin erosion. These issues demand strategic financial planning to ensure sustainable growth across our diverse locations.
Do you have something to say regarding how inventory management automation and dynamic pricing are affecting financial planning?
Inventory management automation and dynamic pricing are pivotal to financial planning in omnichannel retail. We leverage cloud-based inventory systems to synchronize stock across all our outlets. Real-time visibility, powered by technologies like RFID and EDI, reduces overstocking and stockouts, optimizing working capital. For instance, during EOSS, automated systems ensured that high-demand items like electronics were restocked efficiently, minimizing lost sales.
Dynamic pricing, supported by AI-driven analytics, allows us to adjust prices based on demand, competition, and customer data. We use dynamic pricing for groceries to compete with local players and employ personalized offers based on purchase history. These strategies enhance revenue but require significant investment in data infrastructure, impacting short-term cash flow. Financial planning now prioritizes allocating budgets for technology upgrades while forecasting revenue uplifts from improved inventory turnover and pricing precision.
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Can you speak further about how you deal with multi-channel pricing strategies without giving up profitability?
Maintaining profitability across multiple channels requires a disciplined approach to pricing. We implement a unified pricing strategy that balances online and offline channels while preserving margins. For example, during EOSS, we offered a flat 50% discount across all regional locations, ensuring consistency to avoid customer confusion. However, online channels often face pressure to offer deeper discounts, which can erode profitability.
To counter this, we use data-driven insights to optimize pricing. We analyze purchase patterns to set competitive prices for high-ticket items like appliances and focus on localized pricing for daily essentials to attract neighborhood shoppers. Cross-channel promotions, such as bank offers during EOSS, drive footfall to our physical stores, offsetting lower online margins. By integrating first-party data, we personalize offers without compromising profitability, ensuring a seamless experience across channels.
Going forward to the future, what is your long-term investment approach for riding scale, innovation, and profitability in India's new omnichannel world?
Our long-term investment strategy focuses on scaling operations, fostering innovation, and ensuring profitability in India's omnichannel landscape. We are committing significant capital to technology, with investments planned for more outlets in different locations of Bengaluru by end of 2025. We're enhancing our omnichannel infrastructure with visual search tools like Gen AI to personalize customer experiences.
Sustainability is another priority, aligning with consumer demand for eco-friendly practices. We are investing in green logistics, such as low-emission delivery vehicles, to reduce the environmental impact of O2O services. Innovation extends to experiential retail, driving footfall through unique entertainment and gaming experience offerings at our outlets. Going forward, we are also implementing customer self-checkout billing in all our outlets, which we have already implemented in a few outlets at present.
To scale, we're expanding our footprint by end of 2025 to capture urban and suburban markets. Financially, we balance these investments with cost optimization, leveraging automation to reduce pick-and-pack costs by up to 40%. This approach ensures long-term profitability while positioning us as leaders in India's omnichannel retail future.
About the Author
Mirsa Habib K S is a seasoned Finance Manager at Lulu Group Karnataka, regional office at Bengaluru, specializing in omnichannel retail financial management. With extensive expertise in financial planning, budgeting, and performance optimization, he drives profitability through data-driven decision-making and strategic cost control. His comprehensive experience spans financial reporting, cash flow management, investment analysis, and ROI optimization. Proficient in ERP systems and advanced Excel, Mirsa excels in financial modeling and forecasting to align fiscal strategies with business objectives. As a cross-functional leader, he fosters financial discipline and sustainable growth in India's rapidly evolving retail landscape.
