Ambani to revive Hamleys toy store chain |
Indian billionaire Mukesh Ambani is looking forward to revive the 261-year-old toy store chain Hamleys that is struggling for its survival. Hamleys, a British retail icon, hasn`t made a profit for a number of years. Ambani plans to quadruple its outlets in India to more than 500 in 3 years despite the pandemic. Besides the main growth market, the company is also adding stores from Europe to South Africa and China. Ambani bought Hamleys in 2019 to strengthen the group`s retail footprint as part of the ongoing transformation of his oil-and-chemicals conglomerate into a consumer and technology behemoth. The deep pockets of Asia`s richest man and India`s demographics could help breathe new life into Hamleys. The chain`s share of global toy sales were estimated at 0.6% last year by Euromonitor International. Plans include ensuring that Hamleys averts the pitfalls faced by rivals such as Toys “R” Us Inc. Hamley stores are famed for the carnival-like experience, allowing children to race toy cars, enjoy model train sets and play various games. In a country like India, with its densely packed cities and limited entertainment options, such an environment could be a hook to get customers to visit again. The product prices appealing to buyers of modest means, as well as the super-rich, make Hamleys an elastic brand. Ownership of the London-based chain has changed at least three times in the past decade alone -- from an Icelandic bank to a French group and then to a Chinese fashion retailer. Two years ago, Ambani snapped it up for about $89 million in cash. The onset of the pandemic just months after Reliance took control compounded Hamleys` financial distress in the U.K., where it runs 21 outlets.
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