- Shubhangi Bidwe |
With online sales slowing down, Shopclues now plans to increase its offline footprint in India. The plan is to open around 100 franchise stores in the fiscal 2019-20 spread across Tier II and III cities of West Bengal, Orissa, UP, Bihar, Assam, Meghalaya, and Sikkim. The Gurgaon-based company entered the offline market last year. There are stores in UP and West Bengal. The strategy behind opening offline stores is to address local needs with local products and in the local language. The idea is to have an omnichannel presence, especially in Tier II and III locations where buyers still have a preference for brick and mortar stores. Shopclues expects offline to contribute 15 per cent to its overall orders for the ongoing fiscal.
With offline expansion, Shopclues is aiming to be profitable by the end of the current fiscal. It posted revenues of Rs 273 crores for the financial year 2017-18 and also managed to narrow its losses by 40 per cent. Shopclues, which largely sells unbranded products, generates 50 to 55 per cent of its revenue from categories such as fashion and lifestyle and home and kitchen, while mobile electronics accessories contribute 35 per cent to the top line.