With Indian Inflation hitting a 13 year high, Rajesh Exports owned Shubh and Laabh Jewellery retail stores went ahead and announced that store opening would be slower than what was announced earlier.
Rajesh Exports has given weak outlook for the growth in retail jewelry markets in India and hence is likely to go slow on expansion plans of its Shubh outlets. No of Shubh outlets by FY09 has been reduced to 40 stores. Overall the company witnessed an increase in inventory to Rs 1.3bn which is mainly due to rising inventory at Shubh stores (since company opened 6 Shubh stores during the quarter) and also due to diamond jewelry.
Jewellery is mainly sold during festival and marriage season. Adding to jewelry retailers woes is rising Gold & Silver prices have dampened the buying sentiments of Indian consumer.