Steeljunction plans to launch in-store brands

Steeljunction, the retail initiative from Tata Steel, is planning to introduce in-store brands and, to start with, is eyeing the furniture space. The store sells steel but acts like any other retail outlet.

Steeljunction has appointed some designers and is ready with some prototypes.

Sumit Ray, chief (retail initiatives), Tata Steel, said that the move was still at the planning stage and the product line would be a sub-brand under Steeljunction.

The decision to target the furniture segment stemmed from the observation that it happened to be one of the fast moving categories at the store.

Steeljunction already retails unbranded furniture, developed by vendors for the store. These are mostly a combination of cane and steel.

Industry sources said, most retailers banked on in-store brands to prop up the bottomline, of course, once it had the scale of operations.

Commenting on the store's impact on partners, Ray said, the number of suppliers to Steeljunction had more than doubled in less than five months of commercial operations and the store received more than 50 enquiries from potential franchises.

Steeljunction would target schools, offices among other segments for its furniture. On an average, footfalls at the store were around 400 and Steeljunction was looking at a higher conversion of footfalls into actual buys with its soon-to-be launched loyalty programme. At present, conversion was around 29 per cent.

Steeljunction, spread across 23,000 sq ft, would come up with two-three other formats based on size and product lines, once it achieved the scale.