InterGlobe to ramp up retail presence with 40 new stores
InterGlobe Enterprises (IEG), the parent company of India’s most profitable airline IndiGo, plans to invest Rs 22 crore to expand its Hudson News Café chain of stores.business Updated: Jul 29, 2012 22:25 IST
InterGlobe Enterprises (IEG), the parent company of India’s most profitable airline IndiGo, plans to invest Rs 22 crore to expand its Hudson News Café chain of stores.
IEG’s subsidiary, InterGlobe Retail Pvte Ltd, and Dufry International AG, Switzerland, have signed an agreement to establish and operate retail outlets under Dufry’s Hudson News brand across airports, metro and train stations in India.To begin with, InterGlobe plans to operate 40 such retail outlets at Delhi Metro stations against the current 12. The stores will range from more than 100 square meters to 10 square meters depending on feasibility and availability of space.
“We have already opened stores at 12 metro stations,” Siddhanta Sharma, director, InterGlobe Retail, told HT.
The company has signed a 15-year contract with the Delhi Metro Rail Corporation. The stores would be operated by InterGlobe while a franchise fee would be paid to Dufry for using the Hudson brand name.
Going forward, the company also plans to open highway stores, stores at metro stations in other cities and airports. It would also bid for the duty-free space at the Navi Mumbai airport.
“We aim to provide the best retail experience by adapting each operation to the unique requirements of each station. The Café would offer both global and local brands,” said Sharma. “We will offer a comprehensive selection of reading materials, and a wide range of snacks, bottled beverages, health and beauty aids and other travel convenience items.”
InterGlobe and Dufry had jointly commissioned an in-depth market research to create a product offering specially tailored to meet the needs of Delhi Metro customers and Sharma expressed confidence that if they managed to capture 3-4% of the traffic at these stations, the “purpose would be met”.