Sunday, 5 May 2013
Shoppers Stop-Project Report on Retailing in India
Shoppers’ Stop Ltd aims to add 2.7 million sq ft (251,000 sq m) of retail area to its existing spread of 1.3 million sq ft (121,000 sq m) over the next three to four years, as part of a Rs10 billion plan, which will include investment in a new acquisition, in its other formats and in an airport retail joint venture. It has projected an increase in retail area to 4 million sq ft (370,000 sq m) across all formats. The company will also increase the size of its new stores from an average of 65,000 sq ft (6,000 sq m) at present to 85,000 sq ft (7,900 sq m), which will provide it with space to add 50-80 brands to its overall portfolio. It is planning to fund the expansion through a rights issue and internal accruals.
Shoppers’ Stop plans to add new stores in 12 tier-II cities, including Ludhiana, Aurangabad, Amritsar, Surat, Baroda, Vijaywada and Vizag. It will invest Rs250 million in its airport retailing venture with the Nuance Group AG. It will invest Rs1,500 million to expand its formats like Mothercare, Crossword Book Store and HomeStop. It plans to invest more than Rs2,500 million over four years in retail area expansion of the Shoppers’ Stop fascia. It has earmarked Rs500 million to increase its stake in Hypercity Retail (India) from 19% at present to 50% by December 2008, and Rs5 billion to expand the Hypercity format.
· Shoppers’ Stop Ltd was established on 27 October 1991, by K Raheja Corp, and is now India’s second largest department store chain. K Raheja Corp is among India’s largest hospitality and real estate players, and pioneered the concept of a retail business run by a group of professionals. From its inception, Shoppers’ Stop has progressed from being a single brand shop to becoming a fashion and lifestyle store for the family.
· K Raheja Corp conducts multiple lines of retailing activity – lifestyle retailing (Shoppers’ Stop, Home Stop and Arcelia outlets), mixed retailing (Hypercity hypermarket and Expresscity convenience stores), specialty retailing (Crossword, Mothercare, MAC, Clinique and Desi Café food service) and other initiatives, like the Nuance Group (for airport duty-free retailing), Time Zone (for amusement and gaming centres) and Hypercity Argos (for catalogue retailing).
· While Shoppers’ Stop, Hypercity, Crossword, Expresscity and Home Stop are brands belonging to the company, either directly or through subsidiary companies, for other brands, such as Hypercity Argos, MAC, Clinique and Mothercare, the company has tied up with various other international companies.
· Shoppers’ Stop is the only Indian retailer represented in the Switzerland-based Intercontinental Group of Departmental Stores (IGDS) – in addition to 32 well-established retailers from 28 countries all over the world, including Selfridges of the UK, Karstadt of Germany, Takashimaya of Japan, CK Tang (Singapore) and Lamcy Plaza of Dubai.
· Between its inception and March 2008, Shoppers’ Stop had invested Rs2,500 million to establish 1.3 million sq ft (121,000 sq m) of retail space across 24 stores in 11 cities. During 2008, it opened five department stores, one each in Noida and Kolkata, and three in New Delhi. As of the end of 2008, it had a total count of 27 department stores across 12 cities in India. Shoppers’ Stop has its strongest presence in West India and North India, and the smallest in East and Northeast India. Like other department store chains, its outlets are located in larger cities, such as Delhi, Mumbai, Bangalore, Hyderabad, Chennai and Kolkata, with these cities accounting for 17 of the Shoppers’ Stop outlets.
· In 2008, Shoppers’ Stop endeavoured to address niche segments within lifestyle retailing. It launched its latest lifestyle retailing format, Arcelia, which retails high-end cosmetics, perfumes, leather products and footwear for women. To increase footfall and volume sales, Arcelia offers shopping and entertainment, and personal care services like spas and make over sessions.
· Nuance Group (India) Pvt Ltd, a joint venture company between Shoppers’ Stop Ltd and The Nuance Group AG, Switzerland, opened its first duty-free store at Hyderabad International Airport, on 25 March 2008.
· To provide increased shopping convenience to its regular customers through 24/7 access to its services, Shoppers’ Stop launched its on-line store website, www.shopperstop.com, in August 2008. It offers a selected range of domestic and international premium goods, with exclusive brands of men’s, women’s and children’s apparel, fragrance and beauty products, accessories, toys, home decor and gifts through the on-line store. The service is currently available in Mumbai, Navi Mumbai and Thane. Shoppers’ Stop plans to roll out the service in other cities in 2009.
Source-Euromonitor International : Local Company Profile-April 2009
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