Blame it on the recession!! Dabur NEW U stores that started operations early last year are on SALE.
Dabur, the Delhi-based FMCG company, has mandated Grant Thornton to get a buyer for its retail venture, people familiar with the matter said. They said Dabur has lost interest in the chain as the economic downturn has made the environment tough for the company to pursue its retail plans.
The venture had a struggling existence marked by slow growth — there are just 11 ‘new-u’ stores — and exits of CEO Peter Baker and merchandise head Graham Fraser a couple of months ago. A Dabur spokesman denied any plans to sell the chain. “In fact, we plan to set up 12 additional stores this year.”
Several retailers in India are facing a tough time with Subhiksha doing down under, and several new entrants having put a hold to thier expansion plans. The redeeming factor is that most of the organised retailers are backed by companies with deep pockets like the Tatas and the Birlas. But we need to keep a close watch as some other retailers might be in silent talks to get out of thier retail businesses.
