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Shwapno, Bangladesh's leading supermarket chain, has set an ambitious annual turnover target of $750 million while achieving a remarkable operating profit growth of 148 per cent in FY24, its Managing Director Sabbir Hasan Nasir said recently during an exclusive interview with The Financial Express.
Founded in 2008, Shwapno has become synonymous with innovation, inclusivity, and operational excellence in the retail sector.
Despite its early challenges, the brand achieved a 21 per cent compound annual growth rate (CAGR) by 2012, driven by its customer-centric "value tree" philosophy.
By 2017, Shwapno transformed into a masstige brand, blending mass accessibility with prestige through improved store designs and a strong focus on sustainability.
Collaborations with the United States Agency for International Development (USAID) and certifications like GlobalG.A.P. and HACCP further solidified its position as a transparent and socially conscious market leader, said Nasir.
He said Shwapno's inclusive approach goes beyond retail operations.
The company has consistently prioritised sustainability initiatives, including supporting local farmers, reducing food waste, and promoting eco-friendly packaging, he noted.
"These efforts have earned Shwapno significant recognition both locally and internationally. Shwapno stores now serve as not just retail hubs but also community engagement centres, where customers are encouraged to adopt a healthier lifestyle and sustainable consumption habits," he further said.
Nasir said Shwapno's swift adaptation to e-commerce, telesales, and telemarketing during the pandemic showcased its resilience.
The company ensured uninterrupted services by rapidly scaling up digital platforms, streamlining logistics, and maintaining safety protocols across its outlets. These measures not only safeguarded customer trust but also expanded Shwapno's reach to previously underserved regions, he explained.
Answering a question on the company's financial condition, he said the supermarket chain has demonstrated a robust performance trajectory. It achieved positive earnings before interest, taxes, depreciation and amortisation (EBITDA) in FY19 and operating profit in FY22, recording an impressive Tk 325 million operating profit in FY24, reflecting 148 per cent year-on-year growth.
With operating expenses reduced to 17.8 per cent and significant technological advancements, Shwapno has successfully increased its efficiency and profitability, Nasir said.
Technological upgrades in inventory management, automated billing systems, and enhanced supply chain integration have further contributed to cost savings and operational precision, he said.
The supermarket chain is actively seeking financial restructuring and foreign direct investment (FDI) to fuel its growth ambitions.
"Valued at $350 million by global investors, Shwapno has become an attractive prospect for both local and international stakeholders," he said.
He also said Shwapno in 2017 introduced a unique "pseudo-equity" franchise model. The innovative approach boosts its status as the number one supermarket brand to attract investors.
Through this model, Shwapno successfully added 468 outlets to its network, further cementing its presence nationwide.
Nasir said operating in the $18 billion Bangladesh market, Shwapno is on track to achieve $750 million in annual turnover and expand its footprint to 2,000 outlets by 2030, aiming to make quality products accessible to every corner of the country.
He said Shwapno's leadership team remains focused on achieving its break-even point within the next two to three years.
With thorough planning, innovative strategies, and a commitment to excellence, Shwapno is not just redefining the retail landscape in Bangladesh but also setting benchmarks for the industry, he also said.
Nasir expects the company's journey reflects resilience, adaptability, and a relentless pursuit of growth, paving the way for a brighter and more sustainable future in Bangladesh's retail sector.