Shoppers Stop – Expansion + Store Growth [Sales]

K Raheja promoted Shoppers Stop has planned Phased growth for its Lifestyle Stores. The Flagship Departmental Store will add 1.5mn sq ft of retail space (~25 stores) over FY11-14. In addition it intends to open 15 Hypercity stores (~1mn sqft) over the same period. Specialty formats like Crosswords and Home Stop will also witness disciplined store openings.

The management said that the top 6 cities will likely continue to contribute ~70% of company’s sales, according to management. The company has identified 35 cities with over 1mn population where department store model is more viable and they said they would target to achieve higher penetration in these cities.

Same Store Growth
Shoppers Stop has seen healthy like to like sales growth trends over CY2010 supported by buoyant consumer demand. In June-2011 Quarter the company witnessed 21% and 16% QoQ Sales and Volume Growth. The festive season of Dec-2011 Quarter also witnessed similar QoQ growth – 22% Sales and 15% Volume.

Their value retail format Hypercity also maintained healthy LTL sales growth of 19% in FY11, though Q4FY11 witnessed some moderation (11%) impacted to some extent by lower customer entry due to Cricket World Cup.

Shoppers Stop now operates from Lifestyle to Grocery retailing. You can check out the entire list of stores across various cities here.