In a massive expansion drive, retail major K Raheja Group, which runs Shoppers Stop and Hypercity chain of stores, will invest around Rs 525 crore over the next three years to expand network and integration of online and offline sales channels.
The group plans to add up to three stores of its mega store format Hypercity and 6-7 of Shoppers Stop every year.In a massive expansion drive, retail major K Raheja Group, which runs Shoppers Stop and Hypercity chain of stores, will invest around Rs 525 crore#
"The biggest expansion is happening in Shoppers Stop and Hypercity. We are adding 8 to 10 stores combined... We are adding 6 to 7 stores in Shoppers Stop and 2-3 Hypercity stores every year," Shoppers Stop Managing Director and Customer Care Associate Govind Shrikhande told PTI.
"Every year Rs 100 crore investment will go for new stores, Rs 40-50 crore would go for the renovation of the existing stores and Rs 25-30 crore would go for omni-channel strategy," he explained.
The group operates 18 Hypercity stores and 76 Shoppers Stop stores.
"We are aiming to have 25 Hypercity stores by FY 2018-19 and in Shoppers Stop we have a target to have over 90 stores by that time," he said.
Shrikhande further said by 2020, Shoppers Stop will have over 100 stores.
The group's focus will be more on existing cities rather than entering new cities in order to rationalise the cost of marketing and logistics, he added.
Shoppers Stop's expansion will be funded by internal accruals and Hypercity will be through loans, he said.
Shrikhande said the target is to have a 15 per cent annual growth and end at around Rs 5,200 crore by the end of this year.
"Hypercity would touch Rs 1,000 crore this year and Shoppers Stop, taking all its formats, would be Rs 4,200 crore by end of March 31, 2015 and in next three year we are gunning for Rs 7,000 crore plus sales," Shrikhande said.
The group is also working to implement the omni channel system by integrating online and offline retail formats. It expects to be completely omni channel across all formats by December 2016.(SH)
Fibre2Fashion News Desk - India
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