Shoppers Stop expands into luxury retail with standalone stores

India’s oldest department store chain, Shoppers Stop, is taking a bold step into luxury retail. Plans are work in progress to launch large standalone stores that will showcase prestigious brands such as Gucci and Louis Vuitton, as reported by The Economic Times.

These new stores will also feature The Collective, a luxury brand under the Aditya Birla Group. Shoppers Stop plans to open two luxury outlets by the end of this fiscal year, eyeing potential locations in Kolkata and Mumbai.

Expansion and Investment Strategy

According to a Bain & Co. report, India’s luxury market is poised for significant growth, projected to reach $85-90 billion by 2030. This growth is driven by an increasing number of ultra-high-net-worth individuals, a flourishing entrepreneurial landscape, a robust middle class, expanding e-commerce, and rising demand from smaller cities.

Currently valued at $7.86 billion, India’s premium and bridge-to-luxury fashion market is attracting global luxury brands keen on expanding their footprint in the country. Shoppers Stop plans to increase the contribution of premium brands to 55% of its sales in the current fiscal year, up from 47% in FY24.

In the previous financial year, Shoppers Stop substantially expanded its presence by opening 55 new stores, with an investment of Rs 246 crore. The company also revamped 13 stores, including seven department stores, five beauty stores, and one HomeStop. As a result, 71% of its department stores now showcase the updated brand identity.

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