India's Shoppers Stop targets double-digit FY revenue growth - CEO

Shoppers Stop

27/04/2023 13:30

By Praveen Paramasivam
       CHENNAI, April 27 (Reuters) - India's Shoppers Stop Ltd
 SHOP.NS  on Thursday said it expects its revenue to grow in
double-digits this fiscal year, as the department store chain
aims to bring in more brands and add two dozen stores.
    The retailer seeks to open between 10 and 12 department
stores and a similar number of beauty stores in the year ending
March 2024, after launching a combined 23 stores last fiscal,
Chief Executive Venu Nair told Reuters.
    It ended the previous fiscal year with 270 locations.
    Shoppers Stop, which is spread across 52 cities, is focusing
on opening department stores in new locations, mainly in
non-metro cities, Nair said.
    Several apparel and footwear chains including Metro Brands
Ltd  METB.NS  and Arvind Fashions Ltd  ARVF.NS , which sells
Calvin Klein in India, are also doubling down on smaller cities
to tap the growing middle class.
    With brands scrambling for workers to charge their
expansion, Nair said labour availability is "an area which needs
to be kept an eye on," with Shoppers Stop employing 40-100
workers at each of its department stores and 8-10 workers at all
of its beauty outlets.
    The company is also sharpening its focus on its beauty
business, acquiring the exclusive distribution for 15 brands
last year to cash in on the growing demand for skincare and
makeup products from consumers returning to their post-pandemic
lifestyles.
    Shoppers Stop last month signed a distribution deal with
Japan's Shiseido Co Ltd  4911.T  to launch its Nars Cosmetics in
India.
    However, Nair said sales in February and March were "muted,"
partly due to high inflation, although he said Shoppers Stop has
recorded some improvements in the second-half of April.
    He also added there could be some price cuts as apparel and
textile raw material prices have come down in recent months.
    Shoppers Stop on Wednesday swung to a quarterly profit,
benefitting from demand for beauty products and higher margin
private-label clothing.


 (Reporting by Praveen Paramasivam in Chennai; Editing by Sonia
Cheema)
 ((Praveen.Paramasivam@thomsonreuters.com; +91 867-525-3569;))