Shoppers Stop banking on private labels for growth, to add 5 new stores

By

Maverick Martins

Published
Feb 28, 2019

Shoppers Stop, one of India's largest departmental store chains, is banking on its private brands to drive growth going forward amidst slowdown in the retail and uncertainty in the e-commerce sector.
 

The company reported a net profit of Rs 44 crore ($6.2 million) during the October-December period with a revenue of Rs 999 crore. Shoppers Stop is expecting a single digit growth in the fourth quarter of financial year 19 with strong performances by its private brand.
 
“We expect a single digit growth in the Jan-Mar quarter of FY19. For next year, we are planning single digit growth for our branded business for like for like sales and we are hoping to get double digit growth for our private brands. In private brands, we have done big investments so we are keen on expanding that business both from profitability and margin point of view,” Rajiv Suri, managing director and CEO of Shoppers Stop, told Moneycontrol.

Shoppers Stop will also be expanding its retail presence with the addition of 5 new stores in the next fiscal along with an additional 15 for its beauty business.
 
“We are planning to open three stores between March and April and total of five stores in the rest of the financial year. We will continue to grow our beauty business at a faster pace and open 15 stores in the financial year,” Suri added.
 
Shoppers Stop currently has 83 large stores spread across 38 cities in the country along with an e-commerce website, m-site and mobile application.