India’s retail pioneer, Shoppers Stop, has managed to improve its revenues in a slowing economy. Govind Shrikhande, Managing Director, explains some of the factors that worked in its favour.
Excerpts from an interview with Purvita Chatterjee :
It was a good year, with 14 per cent growth in like-to-like stores. We expect to do even better in the fourth quarter. This was possible primarily due to the removal of excise duty on apparel. In fact, in 2013, we had the maximum store openings and managed to launch 14 new stores across all our formats. Today, we have 65 stores under Shoppers Stop and expect to reach 69 by March.
How do you see the slowdown affecting retail in the future?
The retail business can thrive only if the economy grows and inflation is under control. But last year the economy grew at less than 5 per cent and there was food inflation as a result of which consumption directly got affected. The first half was not clear in terms of policies but now we are getting a clearer picture. The Indian consumption story is still intact and, by 2015, the economy will bounce back.
Among the categories you sell in, which have actually grown or de-grown?
Categories like denim and women’s western wear have registered strong growth. So have beauty, footwear and leather. However, categories like jewellery have been hit by the imposition of taxes.
Do you see yourself getting a foreign investor?
As of now there is not enough clarity but Tesco is going to be a test case for the retail industry. We could consider an international tie-up for our big box format under HyperCity. But FDI in multi brand is still in theory and we have to wait and see how the new government views it.
purvita@thehindu.co.in