US dollar store outlets in India soon

US Dollar Store, the Florida-based multi-million dollar company and the pioneers of the single price stores, today announced its tie-up with a New Delhi-based company Nanson Overseas to set up a retail chain in the country.

The 'US dollar store' outlets in India will be selling a household products ranging from health/beauty products and toiletries to food items to toys with a fixed price tag of Rs 99.

Nanson Overseas' director, Gautam Sahni said that the first phase will involve setting up of outlets in the northern states. The first dollar store was opened in the capital in mid-September. The average size of these outlets would be 1500 to 4000 sq ft with an estimated investment in each store at Rs 55-60 lakh.

The first full year of operations that would end in September 2006, is expected to see 25 outlets opened in the northern states. In the second year the number of outlets is expected to grow to 100, according to Nanson executives.

"Already franchise agreements have been signed up for a few located market places in North India as first Phase expansion plan," Sahni said. Organised Indian retail although young is matured for the concept and we are flooded with enquiries from all over the country," Sahni said.

While the initial investment would be done by the franchisee, the stock replenishment and store management would be handled by the principal. The stock for these stores would be sourced from the principle in the US.

"Though the parent company would be buying the stock from countries like China, we would receive our stock only from the US. These products will undergo quality tests in the US before being shipped to India," Sahni said.