Shoppers Stop plans Rs 400 cr expansion

Tuesday, 16 August 2011

In the next four years, Shoppers Stop will invest up to Rs 400 crores to expand its operations in India. Half the amount will go into opening 25 new Shoppers Stop department stores in existing as well as new cities and the balance will also be used to set up 16 new Hypercity formats. Right now there are 43 Shoppers Stop departmental stores, 10 Hypercity hypermarkets and several other specialty format stores such as Home Stop, Crossword, Mothercare, Estee Lauder and MAC in 19 cities.

The company will also focus on reducing the size of its Hypercity formats to 50,000 sq. ft. from 80,000 sq. ft .currently in Tier II cities such as Amritsar, Ludhiana, Jaipur and Bhopal. Also Shoppers Stop in smaller cities will have larger packs and more of casual clothing than formal wear. The reason for this is that buying patterns in metros are very different from smaller cities, where there's only one earning member in the family. Besides, once the FDI rules are clear, the chain would think about a joint venture or partnership with foreign retailers.

Meanwhile Shoppers Shop reported a gross retail turnover of Rs 43.92 bn for the quarter ended June 30, 2011, as against Rs 38.24 bn in Q1 FY11, registering an increase of 15 per cent. Its net profit grew to Rs 1.17 bn as against Rs 1bn, reporting a 17 per cent rise over the corresponding period last year. Besides the company added 1.17 new members to the First Citizen Loyalty Program, increasing its base to 21.35 lakh members.

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