Malabarg Gold’s Dh335m expansion plan unveiled
dubai — Malabar Gold & Diamonds, one of the largest gold and diamond jewellery retailers, unveiled on Tuesday a Dh335million expansion plan in anticipation of a significant rebound in business activity and consumer confidence by 2018.
The plan will see an addition of 24 stores in three months, from January to March 2017, taking the chain’s total outlets to 185, up from 161 as of today.
“When we made our GCC debut in 2008, it was the peak of recession but we were able to grow very fast on a wave of dramatic recovery that began in the aftermath of the downturn. We hope to replicate the same trend as we embark on our second wave of growth at a time when market conditions look challenging,” said Shamlal Ahamed, managing director — International Operations of Malabar Gold & Diamonds’ International Operations.
“Despite the tough market conditions resulting from lower demand, higher price of gold and demonetisation process in India, we have decided to push ahead with expansion, which demonstrates it confidence in the growth of market in future,” said MP Ahammed, Chairman of Malabar Group.
“Investment in downturn market requires courage and strong risk appetite. Our latest expansion demonstrates our long-term vision and a sustainable business development roadmap that we can manage mostly with our own resources,” he said. Speaking to Khaleej Times, Ahammed said the new move is the group’s single largest vertical expansion drive. “The expansion at a crucial time reflects our renewed confidence and strong commitment to the Gulf, India and Far East markets at a time when many retailers struggle to manage their existing operations due to challenging global economic environment,” he said.
The expansion is also aimed at serving more communities and nationalities, especially people from the Philippines, African Arab communities, the Levant as well as the Western countries. The extended network will help us acquire a greater customer base, he said.
Out of the 24 new outlets, nine will be in the UAE, seven in India, five in Saudi Arabia, two in Bahrain and one in Kuwait. Of these, seven will be opened on January 18, 2017, taking the number of total outlets to 168, including 82 in India and 86 internationally.
The expansion will add more than 1,000 professionals to the group’s existing manpower strength of 9,000 and cross the 10,000 employee mark by March this year.
The price of gold has risen in almost every major world economy during 2016, suggesting that the dark days are over and good times are coming back. The gold price is almost 10 per cent higher today than what it had been 12 months ago.
Abdul Salam KP, group executive director of Malabar Group, said consumers were cautious last year. “Retail activities are a reflection of the consumer sentiment. Due to the market conditions, consumers exercised caution. However things are looking brighter as we started the New Year with a lot of positive indications,” he added.