Shoppers Stop aims for 8 percent profit growth in FY16

Retail chain Shoppers Stop, which recently announced that it will restrict summer discount season to 30 days, is aiming for 8 percent rise in its operating profit margins this fiscal year and positive EBIT for Hypercity. The company also plans to open six Shoppers Stop stores, three Hypercity and six to eight specialty stores.

Shoppers Stop aims to pump in Rs 50 crores in its e-commerce business over the next two years to drive growth and compete with rivals. The company expects the retail vehicle to generate 10 percent of its annual turnover. As a part of this strategy, the company has also roped in Sachin Oswal, Co-Founder and former chief operating officer of Infibeam as its CEO to head its online business, apart from implementing the hybris operated software from SAP.

Shoppers Stop has managed to report a 4 percent rise in like-to-like sales in the fourth quarter. The company posted year-on-year stand-alone revenue growth of 9.3 percent to Rs 815 crores. Led by strong operating profit and other income growth, the company’s net profit increased 27 percent to Rs 10.3 crores.