Retailing: 9 To 9 Dollar Shop Plans Expansion  ( February '24,2004, FE)

The 9 to 9 dollar shop, on the lines of the dollar shops in the west, is looking at expanding its footprint in the time to come. The shop, which sells items for Rs 49 and Rs 99 onwards has plans for forays in more states in the country from the present three in the next two years. In the same time frame, the number of outlets is projected to touch around 150-200 from the present 66 stores.

The 9 to 9 shop is a replica of the dollar shops prevailent in the US and Europe. In these shops, various items can be purchased for a dollar or two. On the same line is the 9 to 9 dollar shop which sells items in Rs 49 and Rs 99 onwards. Thus items like crockery, stationery items, leather belts and wallets are sold at Rs 49 and Rs 99. The ability to ensure products at such cheap rates comes from the fact the procurement happens directly from the manufacturer thus eleminating any intermediary, which add to the costs. “The products are directly sourced from manufacturers in China, Taiwan, Hong Kong, Phillipines and Malaysia. Therefore the exporter-importer-wholeseller interme- diary is avoided and the costs savings are passed on to the customers,” said Mahesh Dalmia, spokesperson for 9 to 9 dollar shop. Mr Dalmia said that products, right from cosmetics, stationery items and leather products are directly sourced from these countries. “The minimum base level price is from Rs 49 and Rs 99 onwards and there are products also available in the higher price bracket,” said Mr Dalmia.

The stores apart from operating in a stand alone format also have presence in formats like Giant and Big Bazaar. The total turnover from the 66 stores is to the tune of Rs 15-20 crore per year. “Being part of the bigger retail formats ensures larger footfalls and thereby a larger coverage. Since our format is based on impulse buying, it is necessary for us to have a bigger footfall,” said Dalmia. He added that in future, the focus will be more and more on having presence in shopping malls and retail shopping formats.

The 9 to 9 dollar shop, managed by four entreprenuers, presently has footprint across three states, Maharashtra, Andhra Pradesh and Gujarat. In the three states, it has 66 stores in cities like Mumbai, Pune, Ahemedabad, Baroda, Hyderabad and Vizag to name a few. The expansion plans involve taking the concept to states like Karnataka, Tamil Nadu, Uttar Pradesh and Rajasthan. “In the next two years, we are looking to have around 150-200 stores in 6-7 states across the country,” said Mr Dalmia. Presently, out of the 66 stores, 9 are company owned and the balance are franchisee owned.