Shopper’s Stop Ltd, promoted by K Raheja Group, has announced to hike its stake in hypermarket chain HyperCity to 51 per cent from 19 per cent earlier, making the latter its subsidiary. The additional 32 per cent will be bought from promoters of HyperCity.
It has time till June 30 to complete the stake buy. HyperCity currently operates three stores in Mumbai and one each in Amritsar, Bengaluru, Jaipur and Hyderabad.
Govind Shrikhande, president and CEO, customer care associate, Shopper’s Stop Ltd, said, “The stake purchase will cost us approximately Rs.125 crore.”
The retailer, meanwhile, has observed a steady growth in sales over the last two quarters. “Customers are coming back. Our same store sales growth this quarter has been 16 per cent, which is very high compared to three per cent de-growth last year,” added Shrikhande.
Shopper’s Stop Ltd’s turnover in the fourth quarter grew 20 per cent to Rs.422.9 crore, while the net profit was up 197 per cent at Rs.16.4 crore. The annual retail turnover stands at Rs.1,570 crore, up 12 per cent, while the net profit for the fiscal stood at Rs.50 crore, up 179 per cent.
The retailer further announced to invest Rs.170 to 200 crore to open 18 flagship stores over 30 months.
— IndiaRetailing Bureau