Shoppers Stop reportedly plans to invest Rs 50 crore in its e-commerce business and is targeting to generate 10% of its annual turnover from online retail. The company will deploy the resources to scale up infrastructure, software, people and delivery systems. Like the other brick-and-mortar retailers, Shoppers Stop has been feeling the heat from the existing e-commerce giants who have succeeded in luring large number of shoppers with attractive discounts and deals. “In the next 24 months, we would invest Rs 50 crore for the online channel. We now have a new CEO on board. There would be separate websites across our formats like Homestop and Shoppers Stop, supported by the same infrastructure and software,” Govind Shrikhande, Managing Director, Shoppers Stop, is quoted to have said.
To beef up its e-commerce muscle, Shoppers Stop recently appointed a new CEO Sachin Oswal (Co-Founder and former chief operating officer of Infibeam) to head its online business. It has also gone about implementing a hybrid operated software from SAP, which will help to ramp up its online operations fast. “We will execute our e-commerce operations in three phases, including online, multi-channel and omni-channel presence, and in the next one year we will get our online game right and even make it international,” he added.
However, unlike the rest of e-commerce players, the company aims to strengthen its online presence through omnichannel route. “We will play in the online space on the strength of our physical brands and hope to make money in the next three years through omnichannel strategy. However, unlike e-commerce players, we are here to make money and will not be giving discounts but sell at full price,” asserted Shrikhande.
With 72 stores across 34 cities, Shoppers Stop reported an annual turnover of Rs.3,370 crore last fiscal. Its net profit rose 10 per cent to Rs.40.7 crore.
The company runs 80 stores under Shoppers Stop format and 19 stores under HyperCity
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