Shoppers Stop to add more Amazon kiosks, expects to grow around 8 percent
The company will continue to add 2-3 cities in its network every year to broaden its footprints, besides adding more Amazon kiosks, selling the exclusive products of US-based e-retail major.
Shoppers Stop expects to grow around 8 percent this fiscal, as the K Raheja Group retail chain is expanding its sales network by adding new cities and strengthening its e-commerce presence, following omnichannel strategy, said a top company official.
The company expects that online sales, which contributes around 1.5 per of its revenue, will double this year as it is eyeing to have at least 10 per of its total sales coming from this channel in next three years.
"We expect to be stronger in Q2 and we are looking for 7.5 percent growth. We are looking next three quarters in this range," he added.
Shoppers Stop had registered a consolidated total income of Rs 3,713.25 for the financial year 2017-18, and for the first quarter this fiscal it has reported a total income of Rs 833.72 crore last week.
US-based online retail giant Amazon had picked up 5 percent stake in Shoppers Stop last year by investing Rs 179.25 crore. Shoppers Stop now has an exclusive flagship store on the Amazon marketplace listing the company's portfolio of 400-plus brands.
"We have introduced three Amazon Kiosks in Mumbai and Bangalore, which displays and sells Amazon's exclusive products such as Kindle, Firestick, Alexa etc," said Suri.
"We have noticed considerable traction and now we are planning to roll out across our stores in a phased manner," he added.
"The idea is that we would roll it out strategically along with Amazon… what's the best location for them to open and for us too," he said?
In its recent annual reports, Shopper Stop had said that this alliance with Amazon.in will give a significant fillip to the growth of its omnichannel business and help achieve the target of 10 percent of overall sales from digital touch-points, much quicker than the company had anticipated.
"In the last two years, we have witnessed almost 2X growth. Currently, online sales contribute around 1.5 percent of our revenue and we target to double the sales every year through various digital touch points," he said, adding that the company has invested around Rs 60 crore to expand online presence and is expanding its digital capabilities.
While organic traffic continues to grow, the company has also scaled its marketing efforts online, he added.
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