Dabur gets into retailing with New U
Tata (Trent), Reliance (Fresh), Birla (More) and now Dabur (New U), the retail revolution is at full steam. How much will this affect the neighborhood mom and pop stores is something that only time will tell. As for the consumer, its never been so good. Enjoy.
Dabur’s first retail store will open for business on Thursday (today). Branded New U, Dabur hopes to take the business international.
It is the new kid on the block! Dabur’s first retail store New U opens in Delhi on Thursday. With a target of 75,000 sq ft retail space by 2009, the company aims to have about 25 stores within a year. Dabur’s retail venture is being operated out of a wholly owned subsidiary called Health & Beauty Stores Limited. Dabur India will invest Rs 140 crore towards its retail foray by 2010. Its next stop is the new Hyderabad airport, and the company may look at taking its venture overseas as well.
Peter Baker, CEO, H&B Stores, said, “Our parent company has operations overseas. There are opportunities for such a format in other countries. So yes, there is that possibility.”
Dabur aims at touching Rs 1,000 crore in revenue from H&B stores by 2010. These stores will be company owned and operated, however, Dabur India will not invest in real estate, but lease out space. New U stores will have about 20,000 SKUs from not only the Dabur house but other leading FMCG players as well.
In a month’s time, the company will launch private labels in the personal care category. According to the company, these will be sourced from Thailand and China and will be 20-25% cheaper than other products available in the market.
Taking a cue from Hindustan Unilever’s foray into beauty saloons, Dabur will set up beauty parlours in stores as well. The first one is likely to open within a month.