Shoppers Stop opened its 50th store recently with its
sixth store in Bangalore and has plans to spend Rs 225 crores over the fiscal years 2012-13 and 2013-14 to carry out retail expansion as per the schedule. The softening real-estate rates due to the impact of slowdown has helped the retailer sign property deals in advance and move ahead with the store launches at a rapid pace, while its competitors barring a few are struggling with debt and inventory pressures owing to low demand.
Shoppers Stop would open doors to another 16 stores in the next two years with an investment of Rs 8 crore on an average on each store. And it will add 24 stores in three years. The aim is have 68-70 stores in 30 months. With a huge customer base of loyal customers, which the company claims stands at about 2.3 million across the country coupled with positive response from Tier II, III towns are further boosting the retailer’s spirits. Overall, across the various retail formats such as HomeStop, Crossword Book Store, Mothercare & Early Learning Centre and Hypercity, the group has around four million sq. ft. of retail space.
The company also plans to spend around Rs 500 million towards marketing and communications. The thrust will be mainly through online social media, newsprint and outdoor.