Shoppers Stop and HyperCity chain of stores will be spending Rs. 500 crore in the coming three years to expand its operations in India and on its omni-channel push. The investment is expected to take online sales of the Group to 10 per cent which currently stands at only 1 per cent.
Elaborating on strengthening its online medium, Govind Srikhande, MD and Customer Care Associate, Shoppers Stop mentions, “If you look at some of the most successful cases of offline and online integration of retail operations globally, such as Macy’s and Nordstrom, around 20-30% of their sales now come from online,” adding, “We will spend around Rs. 60 crore on technology for our omni-channel push and rest on store expansion and renovation.” This indicates that online sales could contribute Rs. 750 crore to the Group’s revenues in the next three years, up from current Rs. 52 crore.
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Besides, the Group is aiming to increase store-count of HyperCity to 25 from 18 and Shoppers Stop to 90 from 76 by FY18-19. Srikhande also informed that the Group’s earnings are expected to reach Rs. 5,200 crore by March and further to around Rs. 7,500 crore in the next three years.
Shoppers Stop and HyperCity are promoted by K Raheja Corp. Group (Chandru L. Raheja Group), one of the leading groups in the business of real estate development and hotels in India.
