Shoppers Stop to invest Rs 250 cr to open 15 stores
The new stores would add around one million square feet space under its operation and take the company to five more cities. HT Correspondent reports.business Updated: Nov 16, 2009 22:22 IST
Shoppers Stop plans to open around 15 new stores over the next three years.
The new stores would add around one million square feet space under its operation and take the company to five more cities. The company would spend close to Rs 250 crore for its expansion plans, wherein a major part of it would be sourced through internal accruals.
“The five new cities will include the tier-ii cites like Amritsar, Ahmedabad, Mangalore, Mysore and Vijaywada,” Vinay Bhatia, vice president - marketing and loyalty Shoppers Stop told Hindustan Times.
Bhatia added that each store would be spread across 40-60,000 sq ft space.
Bhatia said that the metropolitan cities would remain the revenue generator for the company. “Delhi and Mumbai together account for a little over 60 per cent of our total sales and few new stores would be open in these cities as well.”
Terming the company’s approach to expansion as practical and cautious Bhatia said that the company had managed to reduce its operational cost by 30 per cent, which has largely been through re-negotiation of rentals and reduction of power consumption at its stores. “We are increasingly going in for revenue sharing agreement with the mall developers.”
“Our sales have grown by almost 7 per cent in the first half of the current financial year as compared to the last financial year,” he said.
The company further does not wish to aggressively expand its kitty of private labels. “Private labels account for around 25 per cent of our sales and we do not wish to increase their share in total sales figures. Customers come to our stores to experience various brands under a single roof and we do not wish to alter that experience,” Bhatia said.