ABLBL expands ‘Hub and Spoke expansion model with a new store in Himmatnagar
19 December 2025, Mumbai
As India’s retail landscape undergoes a fundamental shift, Aditya Birla Lifestyle Brands (ABLBL) has accelerated its ‘Hub and Spoke’ expansion model by inaugurating a flagship store at Gulmohar Sapphire in Himmatnagar. More than just a geographic addition, the launch is a tactical move to capture ‘New Bharat’—the Tier-II and III cities that are projected to drive 45 per cent of total apparel demand in 2025. Facilitated by Inch Realtor, the opening highlights the brand's operational agility in transitioning from commercial leasing to a high-street grand opening in record time.
The migration of premium brands to corridors like North Gujarat is backed by staggering data: organized retail demand in non-metro India is currently expanding at a CAGR of 12 per cent–15 per cent. Unlike the saturated malls of Tier-I metros, regional hubs offer lower operational costs and a captive audience of aspirational, digital-native consumers. In fact, Gen Z now accounts for 40 per cent of the non-metro population, fueling a demand for ‘aspirational premium’ fashion. The Gulmohar Sapphire outlet serves as a critical touchpoint for this demographic, which increasingly views high-street fashion as a marker of social mobility.
Navigating ‘GST 2.0’ and the Rs 2,500 pricing wall
The premium apparel sector is currently navigating a complex tax environment. Following the September 2025 GST rationalization, garments priced above Rs 2,500 attract a steep 18 per cent tax, while those below fall into a favorable 5 per cent bracket. Allen Solly has mitigated this ‘price shock’ through strategic product engineering, focusing on a ‘sweet spot’ range between Rs 1,500 and Rs 2,499. By maintaining a robust 19.6 per cent EBITDA margin in its lifestyle category, the brand has demonstrated that it can absorb parts of the tax transition while maintaining the quality synonymous with its ‘Friday Dressing’ philosophy.
Originally founded in 1744 in Nottingham, England, Allen Solly was introduced to the Indian market in 1993, forever changing the definition of corporate wear with its ‘Friday Dressing’ concept. Today, it is a primary growth engine for the newly demerged ABLBL, which debuted on the BSE and NSE in June 2025 with a valuation of Rs 21,000 crore.
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