Shoppers Stop plans 24 stores over the next three years

The K Raheja Group company, Shoppers Stop Ltd (SSL) that opened its 52nd store on Wednesday with its fifth store in Pune, plans to spend Rs 300 crore over the next three years. It is planning to open 24 stores in metros and tier-II cities like Nashik, Jalandhar and Kochin. The size of these stores will range from 40,000–60,000 sq ft, requiring an investment of more than Rs 8 crore.

Speaking on this, Govind Shrikhande, managing director, Shoppers Stop said, " As India's retail sector is growing rapidly, Shoppers Stop want to aggressively tap this growing clientele across the country. In the last six months, the market has recovered  from the slow down wave and we have observed positive growth. The company will invest over Rs 8 crore per store, inclusive of capital expenditure and stock keeping units in these large format stores. We have over 400 brands incorporated in Shoppers Stop."

According to Shrikhande, it took a store to break even and book profits within 18-24 months of operations.

Commenting on mall management, Shrikhande said, " In the last three years over 52 malls were planned in India, out of which only 22 got completed. The rents have been increased marginally. There should be proper revenue sharing model for this business. Also, the attrition rate in this industry is more as compare to other businesses."

To reduce attrition and to deliver better service for customers especially in apparel sales, Shoppers Stop and IIM-A has jointly designed a course for the students who are willing to work in the malls. This is a 18 months course and after completing the course, the students will get certification and will be appointed as fashion associate in the Shoppers Stop. These associates will get a monthly salary of Rs 9000. The students will get on job training for nine months at Shoppers Stop stores. The course is conducted at major management institutes and fashion designing institutes as well. In Pune, School of Fashion Technology is conducting this type of course. The fees for this course is Rs 1.20 lakh. "Shoppers Stop will recruit over 1500 people through this and first batch of 400 students will join the retail chain in November 2012," said Shrikhnde.