Meena Bazar buys 2 Nandan outlets

FE Team | Published: January 15, 2013 00:00:00 | Updated: February 01, 2018 00:00:00

Monira Munni Meena Bazar -- a sister concern of Gemcon Group -- bought two outlets of Nandan, another renowned brand, as part of its expansion plan. Nandan which shut down three out of its five chain shops in the middle of last year facing financial crisis, recently sold these two outlets to Meenabazar. Nanadan is now operating two outlets-- one at Dhanmondi and the other at Uttara. Meena Bazar had already started operating one at Gulshan on December 30 last year and the other will be launched at the end of January under its brand name. "It was a long process and recently we reached an agreement to buy the Nandan's outlets. The move is a part of an expansion plan we have been working for the last couple of years," Chief Operating Officer of Meena Bazar Shaheen Khan told the FE Monday. "We have been trying for the last few years to expand our retail chain with an aim to enhance the volume of the business," he said adding "It's a volume-based business. The more outlets we open the more will be the sales as we will be able to serve more customers." "We are doing massive renovation works to upgrade the outlets of Nandan to bring them at the equal level of Meena Bazar outlets," he said. Samir Kumar Das, manager (operation) of Nandan, confirmed the purchase and said, "Meena Bazar will operate the management of two outlets while Nandan is operating the other two while one is still closed." However, both parties declined to reveal the value of the transaction. Industry people said to open a single superstore outlet, an amount of Tk 40-50 million is needed. Now the number of Meena Bazar outlets will be 18. Meena Bazar, launched in 2002, operates in Dhaka, Chittagong and Khulna divisions. The idea of superstore flourished in the country a decade ago, fuelled by growing urbanisation, increasing number of women working outside their home, and rising per capita income, industry leaders said. Hassle-free shopping environment, hygienic commodities, fresh vegetables, meat and fish at the supermarkets are earning appreciation of the customers, they added. At present, there are about 24 companies with more than 100 branches operating across the country, according to Bangladesh Supermarket Owners' Association (BSOA). The annual turnover of the superstores now stands at around Tk 15.0 billion (1500 crore) with a strong 15-20 per cent annual sales growth. The government earned Tk 300 million revenue in 2011 from the sector which contributes only 2.0 per cent of the total retail market. The sector employs 40 per cent of the total employment which is 10 million people.