K Raheja’s retail chain Shoppers Stop, which claims majority stake in the group’s hypermarket format Hypercity, is positive enough to state that the latter would to be profitable in FY 12.
Shoppers Stop had increased its stake in Hypercity from 19 per cent to 51 per cent recently to grab maximum from consumers’ wallet, whose spending on food items is around 65 per cent, he said.
“Now that we have acquired a majority stake in Hypercity, our main aim will be its expansion and making it profitable. We expect a break-even for Hypercity at the company level in FY 12. By then, we also expect our revenues to grow three-fold,” Shoppers Stop’s CEO and President, Govind Shrikhande cited.
Hypercity’s revenues currently stand at Rs 330 crore and is likely to be around Rs 1,000 crore by FY 12.
On its strategy post-stake acquisition, Shrikhande said, “There will be no change in strategies or leadership. Our future plans for both Shoppers Stop and Hypercity will remain the same.”
The company is planning to enter into the food and grocery market to squeeze the maximum amount from its customers. So to fulfill its aim, the company is planning to open around 8 more Hypercity outlets by the next fiscal.
