Tablez India, an arm of Abu Dhabi-based LuLu Group, is moving in to bring US children retail brand Toys 'R' Us to India. The company has inked a master franchisee agreement with Toys 'R' Us and as per the pact, Tablez will be opening the outlets of the brand in India and Sri Lanka with a massive investment of Rs 570 crore.
Currently, Tablez is planning to open around 65 outlets of Toys 'R' Us in India in next 10 years. Speaking about the deal, Adeeb Ahmed, MD, Tablez said that company will open the first store in Bengaluru next year and it is in talks with three developers and will close the deal by the end of this month. The first store will be full-fledged experiential store and looking at some 15,000-20,000 sq ft carpet area. The brand comes with two formats Toys 'R' Us and Babies 'R' Us. Toys 'R' Us operates more than 850 eponymous and Babies 'R' Us stores in North America and its products are sold at 1,000 inter-stores in 37 countries.
This will be another feather in the cap of LuLu, the company that operates around 130 hypermarkets in 21 countries in Middle East, Asia and Africa. Company's commitment is 65 stores in the next 10 years but it feels if the present market trend continues, the firm should be able to close that in the next eight years. Company also has the licence to sell those brands online in India and is planning to have dedicated e-commerce site, Ahmed added further.
On the other hand, Toys 'R' Us arch rival, Hamleys has teamed up with Reliance Retail and has jointly installed its 22 outlets in various parts of the country commenting on the competition, Ahmed opined, “Hamleys does not sit in the bracket where we are looking at. We are looking at the mass side of the market.” Elaborating further on the pricing structure, he added that major chunk of brand's toys and baby products will fall under the price cap of Rs 200-1000.