Delhi-based FMCG company Dabur India is taking a relook at expanding its retail venture NewU, after a pause last year due to the economic downturn.
After opening a new store in Delhi recently, two more stores will be opened in Bangalore and Hyderabad by next month.
The 12 to 15 stores that are expected to come up this financial year will come up in these three cities only. Initially, the company had planned to roll out 20-25 outlets but later it revised the number downwards.
Dabur is planning store expansion but has no plans of expansion of geographies right now. It is advantageous for the company logistically because it already has warehouses in the north and south.
The company has no plans of any tie-up with any real estate developer but it has gone for revenue sharing model for a lot of its stores. It is looking at footfall, visibility and location before setting up a store.
The size of NewU stores is going to be around 1,000 sq ft and Dabur plans to set up 200 outlets with a total investment of Rs 140 crore. There are 11 NewU stores in Delhi NCR, Hyderabad and Bangalore currently. It has no plans of going into bigger formats right now.
The NewU stores will have on display near about 20,000 products like cosmetics, perfumes, skin and personal care as well as baby and family care items, fashion accessories, usual merchandise, Ayurvedic and herbal products and pharmaceuticals from all global and homebred companies.
Dabur had entered the retail business in March 2008 by opening its flagship store in Delhi.
Source: The Financial Express