Jumbo Electronics invests Dh50m in expansion plan

Wednesday, Jan 19, 2011

Gulf News

Company eyes UAE and India, puts Qatar on the radar for world cup

Dubai: Jumbo Electronics is investing Dh50 million this year as part of the retail outlets expansion plan in Abu Dhabi and India.

The UAE electronics retailer said it will open eight stores, and planned up to 12 stores this year if it finds the right kind of space.

We are opening four in Abu Dhabi and four in India. In less than three weeks, we will be opening a store in Marina Mall with 5,000 square feet and closely followed by Dalma Mall with 15,000 square feet. We are looking for more space in Abu Dhabi as well as upgrading our stores in other parts of the Gulf, Deepak Khetrapal, CEO of Jumbo Electronics, told Gulf News.

New outlets

The company, which entered India two years ago, is opening two outlets in Pune and one each in Hyderabad and Bengaluru. They are also looking at Chandigarh and Lithuania.

Jumbo has 43 stores, of which 31 are in UAE, eight in India and four in Oman. Jumbo faces a problem in Qatar since the country came into focus after winning the Fifa World Cup bid. Khetrapal said: We did not protect our intellectual property. Someone operates with the same name as Jumbo Electronics. So we are trying to create a way to get into the market. The potential offered is huge in Qatar.

New gizmos have really created a demand in the industry and the excitement associated with it. We are going to constantly work with manufacturers to bring in products which are right for this market on a constant basis.

Khetrapal said consumer trends are driven by new products coming into the market. He added that consumer sentiment had improved a lot. Khetrapal said he sees a strong revival in the industry as premium customers are coming back to the market and they are buying a lot more than they did six months ago.

Tablet PCs, smartphones, 3D TVs and 3D gaming solutions are going to shape the electronics industry this year, he said.

Sony contributes around 25 per cent to the groups turnover and Khetrapal expects to rake in Dh8 billion in sales this year compared to Dh7.34 billion last year.

The momentum gained from the second half of last year is continuing into this year, and on top of this is the DSF [Dubai Shopping Festival]. The authorities have done a good job in promoting this festival across the region in markets from which tourists come, he said.

Strong festival

Hotel rooms in Dubai are almost full and people are finding it difficult to get air tickets. This years DSF is going to be strong compared to the last two years, he added.

Jumbo expects a 25 per cent rise in sales during DSF compared to last year.

All this shows that the excitement that DSF was to create is coming through, he said.

He added that the DSF was special to Jumbo, which is a key sponsor of the festival.

By Naushad K.Cherrayil, Staff Reporter