News: Shoppers' Stop to bring in more global brands

(BL 31/05/2006) Mumbai - Shoppers' Stop is planning to ramp up the presence of its international brands at its stores.

Currently the licensee brands comprise only 5 per cent of its total business and the retail chain is planning to introduce more brands at its stores, which includes roping in the existing stand alone stores as in-store labels within its premises.

B.S. Nagesh, Managing Director & Customer Care Associate, told Business Line: "Being one of the largest retailers, there have to be better offerings at our stores."

In the recent past Shoppers' Stop has been adding the number of licensee brands at its stores, which include brands such as Mother Care and Mac.

It now intends bringing in a jewellery brand from Dubai. Govind Shrikhande, Customer Care Associate and CEO, Shoppers' Stop, said: "We intend bringing in more licensee brands and these would include categories such as footwear, watches and jewellery."

Besides, there are plans to bring stand-alone stores such as Tommy Hilfiger into its large format stores.

At the same time, the retailing chain has also taken the onus of creating stand-alone stores for its licensee brands.

For instance, in the case of Mother Care, Shoppers' Stop would be creating 20 stand-alone stores for the brand while in the case of the cosmetic brand - Mac (with brands such as Clinique and Estee Lauder) - there is a target to make 10 independent stores for the brand.

Notwithstanding the steep import duties on cosmetics (110 per cent), Shoppers' Stop finds it rewarding to create these brands in the Indian market.

"We will go slow and steady in building these brands, especially Mac, in India," said Shrikhande, who said that his chain is already making money on the licensee brands.

Meanwhile, a new company called HyperCity Retail (India) Pvt Ltd has been floated by the K Raheja group as it makes a foray into the hypermarket model.

Having opened its first HyperCity outlet in Malad recently, there are plans to increase its presence by opening 3-4 stores every year.

Shoppers' Stop is also looking at picking up a 51 per cent stake in the venture.

Nagesh, who also doubles up as Vice-Chairman of Hypercity Retail, said: "The expansion for Hypercity will be funded through Shoppers' Stop as well, where we might pick up stake in the company."