Kalyan Jewellers looks to fuel revenue growth with more store openings

Kalyan Jewellers is targeting revenue growth of more than 25% this financial year as the gold and diamond retailer quickens store openings amid a rising preference for lower-carat jewellery. Record-high gold prices have not deterred the wealthy from investing in gold and buying ornaments in the second-largest gold-buying country. Still, the middle class is switching to lower-carat and lightweight jewellery. Consumers favour chains over independent jewellers, shopping frequently and spending more on gifts.

Kalyan jeweller, which had 278 showrooms branded “Kalyan” and 73 stores under the more affordable “Candere” brand in India at March-end, plans to open shops at 160 new locations this fiscal year, with the additions split evenly between the two brands. In three years, Kalyan Jewellers aims its “Kalyan” branded stores to catch up with Titan’s “Tanishq” count, the executive director said, but flagged that the rapid expansion would squeeze the group’s core earnings margin.

For the year ending on March 31, Kalyan Jewellers reported more than one-third rise in revenue to 250.5 billion rupees ($2.9 billion), helped by double-digit percentage same-store sales growth as it opened 136 stores in India.