When contacted, Vijay Rekhi, managing director of UB's United Spirits said the company was toying with a couple of ideas for the proposed retail foray.
"We expect to finalise the plan in another fortnight," he said, adding it was premature to comment on invest numbers. Sources in the know of the development said the blueprint for the foray was ready. " The group may introduce the first lounge bar in Bangalore," they added.
The stores would be named after Kingfisher as the group wants to leverage the Kingfisher brandname into retail space covering various fashion products and apparels.
The stores would retail international brands including Nike, Adidas, and Reebok, apart from selling soft liquor brands from its own portfolio and other companies, sources added.
The group wants to woo youth by selling leisure wear, lounge wear and sports wear along with full-fledged lounge bar. The stores would be conceptualised under the Kingfisher' brandname, sources said.
The blueprint of the proposed foray in the retail space would be guided by the research agency KSA Technopak, which conducted a market study for the UB group nearly six months ago.
The group is already selling 'Kingfisher Line' products in Bangalore designed by fashion designer Manoviraj Khosla.
In April this year UB Group chairman Vijay Mallya had said the retail foray would be decided after the market survey and the foray would be under Kingfisher brandname.
However, analysts say the company should tread with a lot of caution. "It is good to know that we are getting newer concept into the retailing arena. However, they need to be cautious as not every model can be a success. With restrictions in many cities of selling alcohol, there would be certain entry barriers, which need to be considered," says analyst Susil Dungarwal.
Emphasizing the need for a strong back-end, Dungarwal says that newer players will also have to understand the nitty gritties of the retail business, than just looking at the glamour of the front end. Retailing is all about putting your back-end in place first, then look at the front end.
"Retailing is also the easiest business to do, till the time you want to make money. Once you want any retail venture to make money, things change," he says.
