Titan Industries, the Rs 9,000 crore retailer of watches, jewellery and eyewear, has said that it is pausing the expansion of its retail chain which focusses on eyewear. "It is more to do with consolidating on what we have expanded so far. We are now focussing on the profitability of this business," Bhaskar Bhat, MD, Titan Industries told Business Standard.
The eyewear sales by end of the first quarter of Fy13 was up by around 6 per cent whike like-to-like sales grew by a mere one per cent, while the operating losses reduced to Rs 1.6 crore. The company is expecting that this business will turn profitable during next financial year post which the expansion will pick up pace.
Titan Eye Plus has 210 stores across 72 Indian cities, five years after this business was started. Titan Eye Plus, was the third major line of consumer business from Titan Industries Ltd, after watches and jewellery. This move to pause the retail expansion of this business, comes even as the company is looking at an aggresive expansion for its watches and jewellery business during Fy13.
The watches the jewellery segment will continue to be expanded through the franchise route, thus reducing the capital expenditure for Titan Industries to an extent. It is understood that Titan plans to open a total of 100 stores for its Fastrack range of accessories and add another 35 stores under 'Helios' which retails a range of 25 premium watch brands.
Analysts tracking the company said that while they have been cautious on the volume growth scenario in the jewelry business due to high prices, they are, however, positive on Titan's store expansion strategy to drive volumes. "This will work in favor of the company due to the franchisee model," an analyst added.
