Monday, Apr 28, 2014
Dubai: On the face of it, there may not be much of a synergy between selling jewellery and mid-range apparel. But for Joy Alukkas, chairman of the jewellery store network that bears his name, there are still compelling reasons for him to consider making a push into fashion retailing.
“Surprising as it may seem, the net margins on apparel are better than on gold; an apparel retailer also has a better grip on the cost of operations with fewer sales people at a store,” said Alukkas. “There’s also better control on the in-store merchandise.”
So much so, Allukkas is now planning a move into fashion retail, with Dubai or the southern Indian city of Kochi being the likely launch markets. “The shopper mix in Dubai will always allow room for a new mid-tier apparel retailer to make an entry,” said Alukkas. “The tentative plan we have at the moment is to introduce a concept store modelled somewhere along the lines of a Splash or a Max store.”
The Group already has an interest in apparel through ‘Jolly Silks’, but Alukkas says ethnic wear is more or less bought for special occasion. “A retailer can make a mark within the mid-market, which is where a lot of the action in apparel is at the moment.”
By Manoj Nair Associate Editor
Gulf News 2014. All rights reserved.
