Future Group to open eZone stores in major cities

Future Group to open eZone stores in major cities

Author | Source: Business Standard | Saturday, May 17,2008 8:55 AM

Future Group to open eZone stores in major cities

The Kishore Biyani owned Home Solutions Retail is planning to establish mega ezones, a larger format of its existing electronics speciality stores in all the major cities across the country in the current fiscal. The company will make an investment of Rs 10 crore in each of these stores, the first of which was opened in Bangalore on Friday.

Manoj Kumar, CEO of eZone and Electronic Bazaar said the company was planning to open mega eZone stores in four more cities including Mumbai, Chennai and Hyderabad, in the next 4 months.

The 30,000 sq feet mega eZone store in Bangalore is the first its kind for the company which houses over 250 leading national and international electronics brands under a single roof.

The company has also for the first time introduced Gen Next Zone within the mega store, dedicated for newly introduced products and the products that are yet to be introduced. This mega zone is approximately three times larger than its current format — ezone.

Home Solutions already operates 9 eZone stores in Bangalore, which is its highest profit making city for the company. The mega eZone has given dedicated space to all leading brands to come together and work as partners. Although the company did not disclose the revenue model, Kumar said, "They are our partners here."

The company operates 40 eZones across the country including some in tier II cities like Bhubaneswar, Silliguri and Lucknow. Kumar said the company was planning to add 150 new eZones across the country by 2010-11.

Home Solution Retail which also operates Electronics Bazaar, a value retail format through its Big Bazaar hypermarkets is looking at a closing the fiscal with a revenue of Rs 750-800 crore.

Private labels which contributes about 12-15 per cent of the company's total revenue is picking up now, and the company was expecting that this segment will contribute 20 per cent in a year's time.

The company has introduced its own label under the brand name of Koryo and Sensei for most of the categories. Recently, the company has introduced refrigerators under these brands.

The company is providing financing option to its customers through its financial services arm Future Capital Holdings. Kumar said about 5-8 per cent of the customers were availing financing option from the company at present.

Tags: e4m

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