July 6: Shoppers Stop is about to undergo an overhaul session under new CEO Rajiv Suri. Suri, who was appointed as the managing director and chief executive officer of the company during last November, has outlined the growth plans for Shoppers Stop that would help boost the profitability of the company.
Under the plans, Shoppers Stop will be undergoing noticeable transformation that would include renovation of stores, strengthening of management team, launch of international and celebrity brands, and more.
Suri, who has called the phase as a transitional phase, said that the company would focus on in-house brands in an effort to improve the operating margins, which stood at around 6% for last fiscal.
The plan could also include an increase in private labels under Shopper Stop. At present, Shoppers Stop has only 10% share of private labels, while rivals score above or close to 50% with regard to share of private labels.
Suri has been quoted as saying that factors including design, fashionability, fit and fabrics, have all accounted for this. A recent development saw the appointment of a new head of design for in-house brands. Shoppers Stop has also subsequently made investments for setting up new testing lab and studio.
The country’s oldest departmental store has also faced the heat from the booming e-commerce trend in the country. Acknowledging the dynamics of the market, Suri said that the issue will be addressed by giving values and experiences to it.
Rajiv Suri took charge as the new CEO of the company in January this year after the resignation of Govind Shrikhande, who served as the MD for eight years at Shoppers Stop. A month ago, Shoppers Stop promoter Chandru Raheja stepped down as the chairman, and non-executive vice chairman BS Nagesh was elevated to the role.