Shoppers Stop bullish on Hypercity

Shoppers Stop, one of India’s biggest fashion and lifestyle store, is bullish on its food and grocery retail

chain Hypercity in which it owns nearly 20 per cent stake. The retailer believes that Hypercity could grow even bigger than Shoppers Stop itself both in terms of size as well as revenues. Despite having four stores at present Hypercity makes up 20 per cent of Shoppers Stop turnover already. Govind Shrikhande, CEO of Shoppers Stop said that the board has already approved the stake increase to 51 per cent, and the buyout has to get completed by June 30.

Higher realizations per sq. ft. in the food and grocery retail business mean Hypercity`s revenues are likely to zoom past Shoppers Stop’s in no time. So, Shoppers Stop is moving quickly to increase its holding in Hypercity. Industry sources also reveal that there has been tremendous interest from international retailers who have sent feelers to Shoppers Stop for a possible tie-up with Hypercity.
 

Meanwhile, Hypercity is also looking at big expansion of store network and store size. They are targeting about 26 stores in the next four years.