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Shoppers Stop plans to scale up its online sales to account for 20% of its total by 2020

Department chain store Shoppers Stop has reportedly been under pressure to scale up its online sales. 

Department chain store Shoppers Stop has reportedly been under pressure to scale up its online sales. 

According to a Business Standard report, Managing Director Govind Shrikhande is looking at a combination of e-commerce plus physical stores to boost margins as rising land prices drive up rents. 

Online sales will account for 20% of Shoppers Stop’s total by 2020, compared with less than 1 per cent now, Shrikhande told Business Standard.

“Physical retail space growth is going to be slightly challenged for sure, which really means we will have to drive our online business harder,” Shrikhande was quoted in the report as saying. “Not many are going to get into the mall business because of higher realty costs.”

The Indian retailer, which started in 1991 even before any web browser became available, is now at a crossroads as more buyers in the country prefer to shop from the comfort of their homes. According to a Gartner report, total online sales will grow 70% to $6 billion this year.

The Mumbai-based company, which doubled the number of stores in the last three years to 72, is slowing the pace of that expansion and will add 20 more in the next three years, Shrikhande told Business Standard. 

Online sales will account for 10% of total in three years, Shrikhande told Business Standard, adding the company will become debt free once its Hypercity unit starts reporting profit in about 24 months.

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