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Monday, 21 June 2010 |
Shoppers Stop is planning to expand in Tier II cities. In the next three years,the chain will be active in 26
cities, out of which eight to nine will be Tier II cities. The move to these cities is because the chain has received a good response from their stores in Lucknow and Jaipur. This fiscal, the retail chain plans to open stores in Bhopal, Ahmedabad, Aurangabad along with Delhi, Bangalore, Durgapur and Mysore. Also, they are planning to open a second store in Jaipur. The Tie- II city outlets will have the normal premier departmental store model, but won’t have the full line of cosmetic brands. There will be no luxury brands in these stores either. Amritsar will stock a few international cosmetic brands, because there are a lot of international flights to the city and there is a customer base there.
However, they don’t want to take a chance in Durgapur or Mysore. These stores will have more of perfumes than skin-care products. Usually, Shoppers Stop launches two to three brands every year, notable among them are Mustang and Playboy. The group is trying to keep advertising and marketing cost below 4 per cent of sales throughout this financial year.
Meanwhile, they are planning to expand Hypercity from seven stores to 26 stores in the next four years. Around Rs25 -30 crores will be utilized for this expansion and the remaining Rs70 crores will be used for debt reduction. The new hypermarkets will be coming up in Ahmedabad, Pune, Mumbai and Bangalore. They are targeting the top 13 cities where they are already present including Kolkata, Delhi and Chennai. |
