MUMBAI:
One of the oldest and best-known listed retail company, Bombay Swadeshi Stores,
better known as ‘The Bombay Store’ has drawn up expansion plans,
following improved consumer sentiments. The lifestyle retail chain is setting up
new stores in metros, airports and lucrative tier II cities since its consumer
profile primarily comprises non-resident Indian clientele and foreigners. The
company is also understood to be in talk for JV partnership with international
players for setting up stores outside India.

The Bombay Store,
popular for its lifestyle products such as artefacts, wellness products and gift
articles, has plan to escalate its presence from 12 outlets in seven cities to
30 by end of 2011. Currently, company will focus on metros, including more
outlets in Mumbai and new locations like Chennai and Delhi. Tier II cities like
Pune, Cybrabad (extended city of Hyderabad), Aurangabad, Chandigarh and Udaipur
in radar where the company plans to expand as these cities have good consumer
mix and a strong tourism base.

“We are looking at major metros
where our brand is well-known and people have that taste and disposable income
to purchase such goods. These cities have a closer fit with what we are all
about,” said Asim Dalal, MD, The Bombay Store, to ET. The company is
aiming to start 6 more outlets in 2010 and it will add 12 more outlets across
India by 2011.

Recently, The Bombay Store has also done shop-in-shop
agreement with the US based ‘Chado Tea’ — a specialty tea
company — to open a counter in its flagship store at Fort area in Mumbai.
Once it successes here, the company has plan to take it to other locations
also.

With more than 25% of its clientele in most stores comprising
foreigners, the company has also plans to go overseas. By the end of 2011, we
could start looking at setting up stores in European countries such as the UK,
Germany and France and international tourist destinations like Turkey, Egypt and
South Africa.

Revealing company’s overseas plans, Mr Dalal
says that they will form JV with local company in those markets, since
it’s difficult to open stores abroad with own capacity without knowing the
local market and consumer behaviour. However, he adds that overseas tie-ups will
materialise only after making strong base in domestic market. To cater lifestyle
store’s non-residents customers and foreigners, company will also soon
open its online shopping portal, which in future will work as barometer for
opening overseas branches.

Analysts say the company’s move is a
reflection of the improved scenario of the Indian retail sector. “The
Bombay Store is a conservative company as far as expansions are concerns.
However, this time it’s a timely move by the company as the economy has
revived and enough cash flow will help it to grow within their
eco-system,” says Sangeeta Tripathi, a retail analyst with Sharekhan
Securities.

The Bombay Store was established by country’s
patriarch and freedom fighter Lokmanya Tilak and inaugurated by country’s
‘Grand Old Man,’ Dr Dadabhai Naroji on December 17, 1906, as the
Bombay Swadeshi Co-operative Store. It became a listed entity in 1963.