|Jumbo set to revamp and expand retail arm|
|Wednesday, 10 November 2010 05:50|
Jumbo ElectronicsJumbo Electronics, a leading Dubai-based technology retailer in the region, is working on a five-pronged strategy to boost business and expand its retail footprint within the Middle East. Deepak Khetrapal, Chief Executive Officer of Jumbo, said one of his immediate priorities was to meet the challenge most retailers face at the time of a general downturn to create consumer demand.
"Unlike earlier days when the role of the retailer was to meet the demand of consumers, today the challenge most retailers face is how to generate demand. Demand seems to be more difficult to come. What we intend to do is to give our retailing a new look to lure consumers to our showrooms and give them a new retailing experience," said Khetrapal, who joined the $1.5 billion Jumbo Electronics after a stint as the chief operating officer of India's Raymond Group.
One new area of focus for the Dubai-based retail giant is the corporate and enterprise sector. "It is a very large market. We have not yet explored its vast potential. The scope for penetration in this segment is vast and we are on track to enlarge our share," said Khetrapal.
"We believe Jumbo is well positioned to offer institutional clients a whole spectrum of services in design and management of their IT infrastructure and security," he said.
Also in the cards are new forays into Saudi Arabia and Egypt.
The fifth growth initiative Khetrapal has in the pipeline is the repositioning of Jumbo's own Supra brand by improving its products range and distribution network.
The retailer, which in 2008 announced plans for an initial public offering but had to postpone it, said it would consider the launch of an IPO after two years when market conditions are expected to turn around.
Jumbo Electornics, a retailer in consumer electronics, information technology, telecommunications, home appliances, office automation and entertainment, currently operates 30 stores in the UAE, four stores in Oman and one in Sudan. In India, it has a seven-store network that will be expanded with the addition of four new outlets in 2011, said Khetrapal, who brings over 30 years of working experience in industries as diverse as banking, distribution of security systems and textiles manufacturing and retail.
In the next one year, Jumbo plans to open more outlets, two each in Abu Dhabi and Oman. In total, eight new outlets will join its retail network in one year.
Founded in 1974 by Manu Chhabria, Jumbo currently has 1,500 people on its rolls.
At Gitex Shopper 2010, where Jumbo had 16 stalls, each dedicated to a particular brand, it reported a sales increase over 22 per cent over 2009. Jumbo was amongst the top-performing retailers and experienced a 35 per cent percent increase in sales in 2009 as compared to 2008.
At Gitex, where Jumbo had run a promotion format, it was the biggest single exhibitor, Khetrapal claimed.