Toonz Retail bets big on kidswear, to invest 50 crore on 100 stores next year

By

Maverick Martins

Published
Nov 22, 2017

Kidswear lifestyle brand Toonz Retail India continues to remain bullish on the Indian market with plans to add 100 stores in 2018 with an investment of Rs 50 crore (approx $7.8 million) to expand its footprint in the fast growing kids segment, said a top company official.
 

Toonz recently added two stores in Maharashtra and has budgeted Rs 3 crore on its expansion in the current quarter (October to December). It is likely to add 4 more stores in India before the year end.
 
Apart from expansion of its brick and mortar stores the company is also looking to increase its product portfolio especially in fashion and baby care segments to tap this booming market for growth. The kidwear market is estimated at around $8.3 billion and expected to grow at CAGR (compound annual growth rate) 10 percent as per a Technopak report.

With the physical expansion and product diversification Toonz Retail is targeting a turnover of Rs 100 crore (approx $15.5 million) in the next financial year.
 
“We plan to set up 100 new stores by 2018-19 with an approximate investment of Rs 30-50 crore. Also, the company plans to expand product category in fashion and baby care segments”, Sharad Venkta, MD & CEO, Toonz Retail India was quoted as saying in an Economic Times report.
 
“Depending on the city and locality the new store capital budget varies from Rs 30-50 lakh where approx 8-10% is spent on marketing for the initial months. Toonz is growing at a rapid pace of 22% in same store growth and 60% in terms of company turnover,” Venkta added further.
 
At present, Toonz Retail has over 107 stores across the country. Toonz is also available online on Flipkart, Snapdeal, Jabong, Firstcry, Amazon as well as its own e-commerce portal.