(MENAFN- The Peninsula) Malabar Gold & Diamonds, one of the world's largest gold and diamond jewellery retailers, has announced a major investment amounting to Dh335m ($91.28m) in expansion plans of its retail network. The plan will see an addition of 24 stores in three months, from January 2017 to March 2017, taking the number of total outlets to 185 by the end of March, up from 161 as of today.
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 outlets will be opened today, 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 move marks a major investment in expansion at a time when many gold and jewellery retailers have struggled to manage their existing operations due to challenging global economic environment.
Despite the tough market conditions brought about by lower demand, higher price of gold and demonetisation process in India, Malabar Gold & Diamonds has decided to push ahead with expansion, which demonstrates its confidence in the growth of market in future.
'This is one of our single largest vertical expansion drives. The expansion at a crucial time reflects our renewed confidence and strong commitment to the Gulf, India and Far East markets, MP Ahammed, Chairman of Malabar Group, said.
'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.
Abdul Salam KP, Group Executive Director of Malabar Group, said that 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.
Shamlal Ahamed MP, Managing Director International Operations of Malabar Gold & Diamonds says, 'Due to the market conditions, consumers on an average purchased less gold. However, although the average ticket size was low, the transaction value remained almost flat which means the number of customers have grown.
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