- Meenakshi Kumar |
In order to revive growth and boost profitability, Shoppers Stop will now focus on increasing its margins from private labels, launch exclusive international and celebrity brands, renovate stores, and strengthen management team, indicate media reports. In a major rejig last month, Shoppers Stop promoter Chandru Raheja announced his retirement as chairman of the company, and non-executive vice chairman BS Nagesh took his role. Also, Govind Shrikhande, who served as its MD for eight years, resigned, to be replaced by Rajiv Suri who joined the company in January as CEO.
Shoppers Stop’s operating margins for last fiscal, at around 4 per cent, was one third of Tata Trent’s margins and nearly half of Future Lifestyle. Analysts feel Shoppers Stop can leverage its beauty segment to improve profitability. The retailer exclusively retails some top beauty brands including Estee Lauder, MAC, Clinique and Bobby Brown in India, and the segment accounts for nearly 10 per cent of its sales from over 100 stores.
Shoppers Stop will receive commission on sale of Amazon products from its shops, plus rentals. Under the deal, Shoppers Stop also got to use Amazon network to reach online shoppers. E-commerce giant Amazon acquired a 5 per cent stake in Shoppers Stop in September last year, and the two signed a deal to use each other’s network. The US firm has already opened three Amazon Experience Centres, which showcase its exclusive products, within Shoppers Stop outlets.