Shoppers Stop to open 50 new stores by 2020
today Nov 5, 2019
Fashion retail chain Shoppers Stop Ltd is turning to premiumisation for growth in the Indian market and plans to open around 50 new format stores this financial year.
The company has set aside an investment of Rs 150 crore ($21.2 million) on the upgrade and opening of new format stores. Out of the 50 stores, 40 will be in the beauty segment and 10 will be department stores.
The new stores will have high-end brands along with the company’s private-label brands as it looks to cater to a wider audience to boost sales and improve margins.
“We have been opening new concept stores according to the affluence index of the cities. Shoppers Stop will still house brands at entry-level price points through the private brands,” Rajiv Suri, managing director and CEO at Shoppers Stop, told CNBCTV18.
“Over the last couple of years, private brands have helped the company rake in good growth and revenues. 12 percent of the company’s overall sales come through private brand space. To improve the brand mix, the company conducted a brand reshuffle and exited 37 brands,” Suri said.
“The festive season has been muted due to external circumstances. We should get to mid-single-digit same-store sales growth by the end of the year,” added Suri.
Shoppers Stop posted a net loss of Rs 8 crore for the second quarter ended September 30 with sales revenue of Rs 884 crore. It currently has 85 department stores and 123 beauty stores across India.
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