Shopper’s Stop, a department store chain, is on the verge of entering the luxury retail sector by opening stand-alone large format stores featuring high-end brands like Gucci and Louis Vuitton, said The Economic Times. The Collective, the Aditya Birla Group’s luxury store, will be present in such new stores.
It also plans to roll out two luxury outlets within this fiscal—places under consideration include Kolkata and Mumbai, a source close to the development said.
According to a Bain & Co report, India’s luxury market is expected to reach an estimated value of $85-90 billion by 2030. A few of the key drivers behind this growth include a rise in ultrahigh-net-worth individuals with net assets of over $30 million, blooming entrepreneurship, robustness of the middle class, better ecommerce penetration, and demand from tier-2 and tier-3 cities.
The market-sized Indian premium and bridge-to-luxury fashion is USD 7.86 billion now. Global luxury brands have emerged as very positive about the Indian market and are most serious about entering and expanding in the country, the report mentioned. Shoppers Stop expects to increase the contribution of its premium brands to 55 per cent in the current fiscal from 47 per cent in FY24.
Opening 55 new stores in 2023-24, Shoppers Stop invested substantially in expanding the footprint with a capital expenditure of Rs 246 crore.
It also renovated 13 stores, including seven department stores, five beauty stores and one HomeStop. As many as 71 per cent of its departmental stores have been brought under the foShoppers Stop Expands into Luxury Retail Amid Growing Marketld of its new brand identity.
