Saks, Aditya Birla drop 1st desi store plan

NEW DELHI: Well-heeled consumers in India may have to wait before they can shop for their favourite Jimmy Choos or Christian Louboutins at one of the world’s most iconic shopping addresses —

Saks Fifth Avenue

. The American luxury department store chain owned by Hudson’s Bay Company has pulled out of opening its first store in Gurgaon’s Aerocity, said sources.

Earlier this year, it was reported Saks Fifth Avenue would open its first store in partnership with the Aditya Birla Group in Aerocity, one of the country’s rapidly-growing tony zones, followed by a second one in Mumbai’s Bandra Kurla Complex.

When TOI reached out to Hudson’s Bay Company, a spokesperson said, “We do not comment on rumours and speculations.” An Aditya Birla Group spokesperson was not available for comments.

tes around 50 stores in upscale locations across the world, including Beverly Hills and Bahrain, with its flagship store in Midtown Manhattan in New York. Its parent Hudson’s Bay Company operates the Lord & Taylor chain in the US, among others, and bought in 2015 the Cologne-headquartered department store chain

Galeria Kaufhof

from Metro.

The compounded growth rate of the number of Indian high net worth households over the last five years was 16%, with 1.5 lakh such households having a combined net worth of Rs 135 lakh crore in FY16. This is expected to grow to around 3 lakh households with a combined net worth of Rs 300 lakh crore by 2021, according to a study by Kotak Wealth Management. And interestingly, in contrast with traditional trends, currently around 59% of ultra high net worth individuals (HNIs) prefer to shop for luxury goods at home.

However, industry experts said for large Indian businesses such as the Aditya Birla Group, it may not be prudent to venture into the niche luxury segment. “It’s not the most exciting market to be in,” said

Arvind Singhal

, founder of retail consultancy

Technopak

. “Companies, including Reliance with Jio and D-Mart, have shown that India excels when it comes to mass-market segments. Saks Fifth Avenue may be a great vanity name, but for Mr Birla luxury may not be the ideal opportunity to spend energy on at the moment.”