ROI & GMROI : True Measure of Financial Dynamics in Retail

The Retail Jeweller World Dubai Forum 2021 saw a very thoughtful panel that touched upon a very sensitive subject when it comes to the industry — the concept of return on investment to inventory

The jewellery industry sailed without any turbulence or unwanted storms in the horizon in 2019. Jewellers were talking about the importance of brick-and-mortar stores, inventory and trends. Then came 2020 with a nasty blow, unimaginable by our standards. The world shut down and so did the gem and jewellery segment. Stores downed shutters and suddenly, we did not know how to sell and what to sell.

The picture was similar in the Middle East. Dubai, a city that thrives on its tourist inflow, took a hit as the skies remained devoid of flights. There were no customers and no tourists.

In a situation like this, how does a jeweller manage his inventory? The Retail Jeweller World Dubai Forum 2021 had an interesting panel discussion on this. Called “ROI or GMROII (Gross Margin Return on Inventory Investment): True Measure of Financial Dynamics in Retail”, the panel was moderated by Nirav Shah, director, Fame Advisory, Dubai Multi Commodities Centre, and the speakers were Ashish Garg, the country head of KGK group, Kaushik Soni, the managing director of Tejori Diamonds and Thomas Scaria, the head of corporate finance at Joyalukkas.