Shoppers Stop to strengthen online network, expand presence in tier 2 cities

By

Maverick Martins

Published
May 1, 2018

​Indian retail major Shoppers Stop, owned by K Raheja group, is looking to strengthen its presence in the online market and is expecting sales to double every year with plans to open stores in tier 2 cities. 

The company is expecting online sales to contribute 10 percent to the overall revenue of the firm over the next three years, as it looks monetise on Amazon’s partnership during the fiscal. Shoppers Stop will also expand its base in tier 2 cities such as Guwahati, Pune, Bhubaneswar, Calicut and Nashik, to boost omni-channel operations.
 
Shoppers Stop posted profits of Rs 12 crore (approx $ 1.8 million) with sales revenue of Rs 3,607 crore (approx $ 541.5 million) for fiscal 2017-18.

"This year, we will cross one per cent of overall sales (online omni) and then will continue to double every year for the next three years. In next three years, we will hit 10 per cent on our share would be online," Shoppers Stop Customer Care Associate & Managing Director Govind Shrikhande, was quoted as saying by PTI.
 
In regards to its association with Amazon, Shrikhande said, "As far as Amazon is concerned, its investment arm had invested Rs 179 crore in January and our working towards building the catalogue has already started. The whole momentum should be bigger in the second and third quarte, as we get more and more brands on Amazon".
 
"Next year, we are targeting 7.5 per cent and above growth. The first quarter will be slow but from the second quarter onwards, growth should start ramping up and we believe that all operational parameters should improve," he said.
 
Shoppers Stop is owned by K Raheja Corp Group and currently operates 83 stores under Shoppers Stop brand in 38 cities, as well as 13 stores for HomeStop in 10 cities.