Shoppers Stop Ventures into Luxury Retail with Gucci and Louis Vuitton Stores in Partnership with Aditya Birla Group

Shoppers Stop, one of India’s oldest department store chains, is venturing into luxury retail by opening large-format standalone stores. These new outlets will feature prestigious brands like Gucci and Louis Vuitton, alongside The Collective from the Aditya Birla Group.

Expansion Plans

The company plans to launch two luxury stores this fiscal year, potentially in Kolkata and Mumbai, although Shoppers Stop has not confirmed these locations.

CEO Kavindra Mishra highlighted that their move towards premiumisation includes catering not only to luxury buyers but also to those upgrading from less expensive options.

Challenges in Luxury Retail

In India, the luxury retail sector faces challenges such as limited retail space that meets international brand standards. Currently, Reliance and the Aditya Birla Group dominate this market, partnering with over 50 luxury brands.

The Indian luxury market is projected to grow significantly, driven by rising wealth, a strong middle class, and increasing online shopping trends. Shoppers Stop aims to increase its revenue contribution from premium brands to 55% this fiscal year, up from 47% in the previous year.

Financial Strategy

The company reported a 3% revenue growth in the last fiscal year, driven by non-apparel segments like beauty and home products, as well as its expanded store network. Shoppers Stop has invested heavily in expanding its footprint, opening 55 new stores in 2023-24 and renovating several existing ones.

This strategic focus aligns with broader industry trends towards higher discretionary spending and luxury goods.