We look at the latest news from UAE-based Lulu. This includes Lulu’s retail division Tablez and its plans to expand in India, with an aim of opening 300 stores by 2020. Tablez hopes to generate a revenue of INR4bn (US$57.3m) by 2020, up from the INR1bn (US$14.5m) it generates currently.
The revenue target will be driven by a range of retail brands and will not be solely down to LuLu’s grocery operations.
Tablez to increase its brands to 10…
Tablez currently operates six brands in India, across 42 stores, but hopes to increase its count to 10 brands in the short term. It has signed master franchise agreements with Springfield, Women'secret, Toys 'R' Us and Babies 'R' Us and a strategic cooperation agreement with China-based brand YOYOSO. Lulu also holds the franchise rights for US-based Cold Stone Creamery and Galito's and two UAE-based brands, Bloomsbury's and Peppermill.
Adeeb Ahamed, Tablez’s managing director, commented, “In 2017, we announced plans to invest around INR3.5bn (US$50.1m) and we have already invested almost half of it. The investment is expected to go beyond the announced level, and we may invest more to achieve the targets”.
…and expects to report a profit in 2019
Lulu is expanding by opening malls in Lucknow and Vizag, within which Tablez will establish itself. Tablez hopes to maintain a ratio of 70:30 between operating stores in shopping centres and in high footfall locations. The retailer will establish its presence in south India and expand across north India with its various brands. Tablez is expected to be profitable in 2019.
Tablez expands Cold Stone Creamery
In other news, Tablez has opened a new Cold Stone Creamery outlet in Chennai. It hopes to expand the brand to Mumbai and Hyderabad in 2019 and open a total of 50 stores in India by 2020. Tablez also hopes to increase revenue for the ice cream brand from INR200m (US$2.9m) to INR1bn (US$14.3m).
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