The move comes as India’s consumer companies rush to premiumise to tap into the strong demand at the higher end of the consumer discretionary market.
The company has taken 17,000 sq ft space in Delhi’s South Extension market for the luxury store, said two executives aware of the development.
They said Titan is doing a pilot for this luxury format in the national capital and might replicate it in other parts of the country.
The Tata group company reported a double-digit growth in buyers and ticket sizes in the September quarter, indicating strong demand at higher price points.
“This will be one of the largest jewellery stores in the country, and Titan already has a store of about 10,000 sq ft across the road,” said one of the persons, who did not wish to be identified. “The average rent in the area ranges between Rs 500-600 per sq ft per month.”Titan as well as international property consultant Cushman & Wakefield, which acted as adviser for the deal, declined to comment.
The organised jewellery retail segment is growing faster than other consumer discretionary segments since April with buyers shifting away from smaller jewellers.
According to ICICI Securities, in the medium term, the jewellery segment can outperform other segments as it is relatively immune to general economic slowdown owing to factors including inelastic wedding purchases.
“Titan highlighted double-digit growth in buyers and ticket sizes. However, Titan continued investments in exchange programmes and consumer offers which helped maintain its momentum, implying pressure on margins,” it added.
The company reported a 20% increase in its domestic jewellery sales in the July-September quarter from a year earlier.
In September, the jewellery segment grew 13% year-on-year, faster than the overall retail sector which expanded 9% but just short of quick-service restaurants (14%) and food and grocery (14%), according to the Retailers Association of India data.
Titan added 10 Tanishq stores in the July-September quarter. Tanishq also expanded its presence in West Asia by entering Qatar, opening two new boutiques in Doha. It also opened 26 stores of Mia by Tanishq and one store of Zoya. Tanishq has 436 stores at present and plans to increase the number to 470 by the end of this financial year.
During the third quarter of 2023, the Delhi-National Capital Region witnessed 450,000 sq ft retail space uptake across malls and markets, an increase of 34% quarter-on-quarter and 30% year-on-year.
