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| Future Group bets big on Brand Factory |
| Pradipta Mukherjee / Kolkata Sep 10, 2009, 00:41 IST |
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Future Group is targeting close to Rs 45 crore from its Brand Factory store in one year. The company, which restructured its Big Bazaar store on Lee Road in Kolkata to convert it into a Brand Factory, is looking at a one-year break even period for its Brand Factory outlet.
Rajesh Seth, vice-president-marketing, Brand Factory and Central, said, “We deliberately targeted the festive season for our first Brand Factory launch in Kolkata. We have set a high target of Rs 45 crore in one year from this store, but we believe it is achievable, given the consumer sentiment right now and sales at our other stores in the city.”
The company is also looking at redoing another two to three of its existing stores to accommodate formats that are not available in the city yet. For one, the company is looking at launching its Central format in Kolkata, which is a lifestyle brand, commanding an average size of 15-300,000 sq ft. While each Central requires an investment of close to Rs 20-30 crore, Brand Factory requires Rs 6-10 crore per store.
“This is the first time that we revamped an existing store to make room for a new format. But we needed this locational advantage and the size. That is why the decision to rebrand Big Bazaar into Brand Factory,” Seth said.
Brand Factory is typically a format where all branded products are available, but at 20-50 per cent discounted price throughout the year.
Among other plans, Future Group would add another 4 lakh sq ft in East for Big Bazaar, to its existing 10 lakh sq ft. While Pantaloons would add another 40-50,000 sq ft in the next four months, to its existing 4 lakh sq ft in East. Future Group currently commands 2 million sq ft in East with all its formats put together, informed Sandeep Marwa, CEO - East of Future Group.
Nationally, Future Group is planning to invest close to Rs 400 crore in setting up 30 new Brand Factory and six new Central formats in India, over the next two years.
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