Shoppers Stop, the oldest retail chain in the United States, plans to open a value format to attract customers choosing lower-priced manufacturers such as Tata Zudio and Landmark Group's Max, two employees familiar with the launch.
One stated, "The objective is to create stores in the vein of Zudio and Max and acquire a broader market, particularly in the smaller cities." The first store, which could open in the next three months, will have a square footage of 7,000 to 8,000.
Shoppers Stop is entering the group pricing phase after a lengthy run of three promotions for luxury clothing and lifestyle products. Experts said the consumer build in India has already strayed away from a small base of wealthier customers who account for a large part of the overall market.
However, as the economic system expands to many cities and the impact reaches further down the profit ladder, the opportunity for value forms and valuable brands increases, said Devangshu Dutta, founding father of retail consulting agency Third Sight. "In India's diversified market, scale alone is not enough to guarantee success."
Shoppers Stop may open its first value format stores in Tier 2 cities before moving to metro cities, as the above people mentioned. The company did not respond to the email question until press time on Sunday.
“The value format sector is growing and during Covid-19 we have seen an increase in consumption in tier two cities,” said Shriram BM Monga, founding partner of retail advisory agency SRED. These cities now feature top-notch malls, which give retailers good space.
Tata Group agency Trent has previously indicated that Westside is acquiring 70 percent of its independent company, but Zudio, a fast-fashion economy model, has the potential to break through the division chain due to the size of the opportunity at stage of value.
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