Reliance Retail Is Planning To Buy Hamleys
Hamleys is the 259-year-old iconic British toy retailer which is since the East India Company established in the country. But soon Reliance Retail is planning to buy Hamleys. If discussion with the Chinese owner succeeds, the deal will be in the hands of India’s largest retailer, Reliance Retail.
The purchase of Hamleys will lead Reliance Retail to his international ambition. According to sources, “Reliance Retail is aggressively pursuing the deal”.
Hamleys began as ‘Noah’s Arch in London in 1760. It counted as the royal family of Saudi Arabia among its loyal customers. In recent years the company suffered due to uncertainty over Brexit and UK consumer base. Hamleys reported a loss of 12 million pounds in 2017 along with a decline of 2.5 percent in annual revenues.
Hamleys today is a dominant player worldwide in the toy industry. It has rivals like Target, Walmart, Amazon, and Kohl’s.
A source said, that if this deal gets successful, it will help Reliance Retail in expanding its roots internationally. Along with this, Hamleys business will scale up with its strong capabilities in supply chain management and distribution network.
Reliance Retail already has an agreement with Hamleys to merchandise its famous toys pan-India. Hamleys has currently 129 stores globally out of which major ones are under the franchise model. The company has its footprints in the United Kingdom, China, Germany, Russia, India, South Africa, the Middle East, and other regions.
If the deal gets confirmed, Reliance Retail will expand the roots of Hamleys in India. With 50 stores in India, Hamleys is aiming to scale it t0 200 stores in the next three years.
According to the report by IMARC, a market research firm, the worth of the Indian toy market was $1.5 billion in 2018. This number has grown to 15.9 percent from 2011 to 2018 when compounded annually. IMARC expects this number to cross $3.3 billion by 2024. The main Indian players are Funskool, Lego, Mattel, and Hasbro.
Hamleys was last acquired by a Chinese fashion conglomerate C. Banner International for 100 million pounds in 2015. If Reliance Retail buys this, it will be for the fourth time when Hamleys got acquired.