Shoppers Stop to open large stores with Gucci, Louis Vuitton

Shoppers Stop, a well-known department store chain, is poised to make a significant move into the luxury retail sector. The company plans to launch standalone large-format stores featuring prestigious high-end brands such as Gucci and Louis Vuitton, according to a report by The Economic Times. Additionally, these new stores will include The Collective, a luxury store from the Aditya Birla Group, further enhancing the premium shopping experience.

The company aims to open two luxury outlets within this fiscal year, with potential locations in Kolkata and Mumbai, as reported by a source familiar with the matter.

According to a report by Bain & Co, India’s luxury market is projected to reach $85-90 billion by 2030. This growth is driven by several factors, including an increasing number of ultrahigh-net-worth individuals (those with net assets of $30 million or more), a rise in entrepreneurship, a robust middle class, greater e-commerce penetration, and growing demand from tier-2 and tier-3 cities.

Currently, the premium and bridge-to-luxury fashion market in India is valued at $7.86 billion. Global luxury brands are optimistic about the Indian market and are eager to enter and expand within the country, according to the report. Shoppers Stop aims to achieve a 55% contribution from premium brands in the current fiscal year, up from 47% in FY24.

In the 2023-24 fiscal year, Shoppers Stop made a substantial investment in expanding its footprint, opening 55 new stores and spending a capital expenditure of Rs 246 crore. Additionally, the company renovated 13 stores, including seven department stores, five beauty stores, and one HomeStop, resulting in 71% of its department stores adopting its new brand identity.

Overall, Shoppers Stop's venture into the luxury retail market represents a strategic move to capitalize on the growing demand for high-end products in India and to further establish its presence in the competitive retail sector.