Shoppers Stop: Increased stake in Hypercity

The Raheja-owned Shopper Stop premium department store is all set to become a full service retailer
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The Raheja-owned Shopper Stop premium department store is all set to
become a full service retailer soon. The move taken by the firm is to
increase the stake in the promoter group’s hypermarket chain Hypercity
from 19 per cent to 51 per cent.

With this move, Shopper Stop would come into the category of big
retailers such as Kishore Biyani’s Future Group, Tata’s Trent and
Mukesh Ambani’s Reliance Retail – all of whom operate both
hypermarkets and department stores.

The motive to bring Shopper Stop in the Hypercity chain is to grasp
more share of consumer’s wallet. Since apparel and accessories account
for 15 per cent of consumer’s pocket, food and grocery take the major
chunk of the consumer budget even though the margin is less in this
segment.

Industry-watchers agree. “Over a period of time, hypermarkets have
performed well for retailers. Unlike fashion where there are 300-400
players, hypermarkets barely have four to five large players,’’ says
Susil Dungarwal, founder of Beyond Squarefeet.

Apart from hypermarkets, Shopper Stop will also double its store count
in the next four to five years with an investment of Rs 300 crore.

 
 
 
 
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