Sathosa goes for more outlets

by Lalin Fernandopulle

Lanka Sathosa Ltd. has decided to increase the number of its outlets to 50 by next month, aiming a target of 100 by mid next year, said CEO Lanka Sathosa Ltd, Prasanna S.H. Weerakoon.

Briefing the media on the marketing strategies, he said aspiration of Lanka Sathosa was to create value for the goods and of customer-oriented. The company will serve as the barometer for prices of essential items in the market.

The move to increase the number of outlets is in keeping with the growing demand from the public to have more outlets where essential items could be purchased at a reasonable price. We believe that by offering reasonable prices for essential items it would be a great relief to people who are burdened with the rising cost of living, he said.

Currently 46 Lanka Sathosa outlets are in operation, two more in the coming week and another two by next month would be opened. The first two outlets will be opened at Narahenwela and Polgahawela on October 9 and 10. Two outlets which will be opened next month at Thalgaswela in the Galle District and the other one at Polonnaruwa.

The company was formed in 2005 as a concept spelt out in the Mahinda Chintanaya. The objective of Lanka Sathosa is to provide essential food items at an affordable price which will benefit the low income group, Weerakoon said.

To be the price leader of essential items, to purchase goods at the best price to maintain lowest retail price and making shopping a hassle-free exercise are some of the strategies that Lanka Sathosa plans to implement. Lanka Sathosa sells 15 essential items below the market price including rice, Bombay onions, sugar, potatoes, dhall, green gram, wheat flour, dry chillies, canned fish, dry fish, garlic, milk powder, coriander, chick peas and cowpea.

A 400g full cream milk powder sold at a Sathosa outlet is Rs. 134 whereas the same quantity ranges from Rs. 142 to 165 in the market. Red raw rice is sold at Rs. 26 per kg which is only a 50 cent difference than the market price. Though rice is sold keeping a smaller margin as profit prices of other items are much less, compared with the market, Weerakoon said.

Lanka Sathosa will be committed to maintain quality and standard of food items and sell them at a reasonable price than depend too much on market conditions. The quality of service will not be compromised at any cost and will pass down the maximum benefits to the consumer, he said.