Struggling Retailer Shoppers Stop is planning to spend Rs 1500 crore to expand from existing 24 stores to around 50 stores over the next three to five years. It has also opted for an identity change that includes a new younger-look logo and a tagline that says 'Start something new'. Speaking to
, B S Nagesh, customer care associate and managing director of Shoppers Stop said, "We will expand from 1.6 million square feet to 6 million square feet by 2011. Rs 500 crore should come through the rights issue, Rs 500 crore from internal accruals and Rs 500 crore from debt."
"We will spend Rs 20 crore this year towards our marketing exercises", he added. Since the company needs 150 employees per store on an average, this also the company will hire 3900 employees will be added in the next three to five years.
Shoppers Stop has been in existence for the last seventeen years and hence thought of changing its identity to appeal to a younger audience.
Although many retailers have been adversely affected due to inflation, Nagesh said the impact is less for Shoppers Stop. "We cater to the top 12 per cent of the consumers and hence are less impacted. However, food inflation is quite high and we will wait and watch before taking any move."
The company has already filed for the rights issue to SEBI, which is currently reviewing it. When asked about the association with actor Shah Rukh Khan that started with merchandise partnership of Om Shanti Om and continued as the actor graced the occasion today, Govind Shrikhande, customer care associate and CEO of Shoppers Stop said, "We believe there is a match between the values of SRK and Shoppers' Stop. Currently, IPL is hot and hence as of now there are no plans to have him as the brand ambassador." However, he didn't deny the possibility later on. When asked about the competition with Future Group, he said, "In the departmental stores space, we are doing better. Their formats-Pantaloons and Central are not their focus right now. They are more aggressive with Big Bazaar and Food Bazaar."
The creative advertising has been done by Contract advertising agency. Keeping the promise of starting something new, the retailer has introduced trial rooms with day and night lighting options, in-store radio across all its stores, a new range of shopping bags themed on 'fashion through ages', among other initiatives. Shoppers Stop has around 4500 direct employees.