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Department store chain Shoppers Stop today (Friday) tied up with enterprise software provider SAP to boost its omnichannel strategy. It said it will invest Rs 60 crore over next three years in this strategy and is targeting to achieve 15% revenues through digital ventures. Govind Shrikhande, managing director of Shoppers Stop spoke to Raghavendra Kamath about the company's strategy and plans.
Shoppers Stop's like to like sales growth was hit due to heavy discounting by e-commerce portals in the last few quarters. Is that still continuing?
In June quarter, we have a seen a recovery. We have seen over 10% like to like growth in June quarter. Anything above 8% is decent growth. We had seen one% like to like growth in Q3 and 4% in Q4 of last financial year. There is a realisation among customers that there is a lot of hype about discounting but they are getting old season's merchandise on e-commerce portals. To get new merchandise, you have to go to stores.
But many brands had come out with discounts and promotional offers during May. What do you think about that?
Online retailers ordered merchandise but did not pick up. That led to brands coming out with discounts. Many brands have started end of the season sale in the past two weeks but we are yet to come out with sale.
Shoppers Stop and other retailers have decided to reduce end of season sale period. What are you doing to get more customers into the stores during the normal sale period?
We have launched new brands such as Wrogn and Desigual and new ranges and new merchandise in brands such as Vettorio Fratini. Brands such as Arrow, Louis Philippe, Van Heusen have also come out with new collections. So, in the double digit growth we are seeing, we are seeing growth in volumes. which means people are buying more.
The company, you said, is working on a three-pronged business strategy. Can you elaborate?
First , getting online operations better by this Diwali, launching multi channel operations by January next year and launching a omni channel operations by Diwali next year. Secondly, leveraging on our loyalty programmes. We have 3.6 million members of loyalty programmes and 6.8 million Facebook fans. Even if we get them to make one more trip to our store or online, our like-to- like sales growth can go to 15%. Thirdly, driving share of private brands and exclusive brands from 17% to 35%.
Can you speak further on the forthcoming brand launches?
Next week, We are launching a brand called Rocky Star designed by Rocky S. We are launching Rheson by Sonam Kapoor and Rhea Kapoor and another brand Femina Flont in August.
You talked about launching exclusive brands and private brands. Doesn't it affect your bridge to luxury positioning?
We are focusing on exclusivity of brands rather than price points. They are available only in our stores or online.
