We will await clarifications on Tesco proposal: Govind Shrikhande

Interview with Managing Director, Shoppers Stop

Retail chain Shoppers Stop says it is willing to partner foreign retailers for its Hypercity hypermarket chain. Managing Director Govind Shrikhande tells Raghavendra Kamath clearance to the Tesco-Trent multi-brand retailing joint venture could pave the way for many more investments. Edited excerpts:

How do you look at the Tesco-Trent multi-brand retailing venture proposal?

The current application is an excellent example of how FDI (foreign direct investment) in multi-brand retail could take shape in the future. The current policy does not allow investment in brownfield (old) projects.

If the department of industrial policy and promotion allows this, it can pave the way for many more investments. So, this is a positive development.

There were talks of French retailer Carrefour mulling investing in Hypercity.

We have always supported FDI in multi-brand retail. And, if the rules and regulations are more clear, we will definitely be willing to partner the best players in the global hypermarket business. We will await the clarifications for the current (Tesco) application before we start discussions with any player.

How have Christmas sales been for Shoppers Stop and Hypercity?

Xmas is looking good with on-target sales growth in the high single digits.

How do you think the new year will be for growth and entry of foreign retailers?

2014 is an election year. It would definitely impact GDP (gross domestic product) growth and economy till the election results are clear.

But after elections, as the dust settles down, the economy should come back on track with strong growth in consumption. Then, 2015 onwards, I see strong economic growth for India.

What are your plans for the next year?

We will continue to focus on expansion in the department store category and profitability in Hypercity. We are targeting to open eight Shoppers Stop stores and two Hypercity ones. We will complete the process of reducing the size of Hypercity stores during the next year.