DLF Brands, the retail arm of real estate company DLF, is mulling over taking the exit route from luxury business. The Group has just closed down two DKNY stores, after parting ways with premium brands such as Salvatore Ferragamo, Giorgio Armani and Sephora earlier, as reported by a leading Indian daily.
Timmy Sarna, MD, DLF Brands commented, “Out of seven stores, five are still operational. We don’t have any plans of opening new DKNY stores. And we don’t want to be in the high-fashion business. It’s difficult to scale that business up because there aren’t too many locations in the country where you can sell luxury,” adding that the company has profitable businesses in Mothercare, Sunglass Hut and Kiko.
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He further mentioned, “This year, Mothercare will touch a top line of Rs 300 Crores and we want to scale it up to Rs 1,000 Crores in the coming three years. Apart from this, our other brands such as Sunglass Hut, Claire’s and make-up brand Kiko are doing extremely well and are profitable.”
The company started showing signs of discomfort with luxury and premium brands from 2012, when it exited its joint ventures with Giorgio Armani and Ferragamo. In 2014, it shut stores for Italian menswear brand Boggi Milano. Then last year, it parted with LVMH Moet Hennessey, Louis Vuitton’s make-up and skincare brand Sephora, which was subsequently taken over by Arvind Lifestyle Brands.
