Shoppers Stop has a retail strategy in place to drive and grow
its business despite competition from other MNCs and Indian firms. The plan is to double its turnover in less than four years by expanding its department store operations and strengthening the hypermarket chain HyperCity. Initially, what began as just a single department store -- Shoppers Stop -- has now grown into a mammoth operations spreading across cities. The K Raheja group spread its wings to other segments as competition increased and Indian consumers became aware and conscious about branded wear. The company has ventured into new segments like: mother and infant apparels and goods with the Mothercare brand; cosmetics segment Estee Lauder; books through Crossword; and hypermarket format with HyperCity in the last few years.
It has plans to invest Rs 110 crores per year in the next 3-4 years, which will be mainly used to open new outlets. Shoppers Stop plans to add 22 more Shoppers Stop outlets, while HyperCity outlets will double to 20 from the existing 10. It currently has 43 Shoppers Stop outlets, 33 Mothercare stores, 83 Crosswords, three Estee Lauder and seven Homestop furniture stores among others.
In 2010, its stake in HyperCity format was increased from 19 per cent to 51 per cent to become the majority shareholder. The company is also looking at achieving topline growth of 20-25 per cent every year. The entire financial year of 2010-11, Shoppers Stop had a consolidated net profit of Rs 43.20 crores on total income of Rs 2,231.51 crores. HyperCity accounts for 30 per cent of Shoppers Stop’s revenues, and that is likely to go up to 40 per cent in three years. The company expects overall earnings to pick up this fiscal as cotton prices have fallen and the festive season is around the corner. It has witnessed Q1 like-to-like growth at 7 per cent.