Kalyan Jewellers plans to open 52 showrooms in 52 weeks in 2023
Kalyan Jewellers India Limited plans to expand its retail footprint by over 30%. The fine jewellery brand will open 52 showrooms across India in 52 weeks in the 2023 calendar year.
The brand’s brick-and-mortar expansion will mainly focus on locations outside of South India, where the business already has a strong presence, Kalyan Jewellers announced in a press release on December 8. The business conducted a pilot franchisee programme in the 2022 calendar year and, following its success, plans to focus on a franchise model for future expansion.
“The company has recorded an impressive trailing twelve months (TTM) revenue of approximately Rs 13,000 crore with a PAT of Rs 425 crore (approx.) as on Sept 30th, 2022,” said Kalyan Jewellers’ executive director Ramesh Kalyanaraman in a press release. “Jewellery sector is shifting towards organised and more experiential retailing, and Kalyan Jewellers continues to be well positioned to capitalise on this trend. The overall expansion strategy aims to charter the next growth phase of the company and will increase our market share significantly and be accretive to our return on capital profile.”
The non-South region currently contributes 35% of Kalyan Jewellers’ total business. By 2025, the jewellery brand expects to see 50% of its business stem from non-South markets, fuelled by its upcoming retail expansion into the North, East, and West of India.
Kalyan Jewellers’ franchise model is based on a capital-efficient and return on capital accretive ‘Franchise Owned Company Operated’ model. The business has seen strong demand in metros and amongst millennial consumers and is keen to expand into Tier 2 and 3 locations to replicate its metropolitan success.
Copyright © 2023 FashionNetwork.com All rights reserved.