One of the oldest fashion store chain, Shoppers Stop is planning to double its contribution from higher margin Private Labels. It is planning to exclusively launch international and celebrity brands. Apart from this, it will renovate several stores, and strengthen its management team, since it is looking to revive growth and boost its profitability.

The managing director of the company has informed that the company is not in a turnaround stage as yet, but what it is talking about is the transitional stage. In 2017-18, the retailer has been struggling to keep up with online and offline rivals, reporting a fall in its sales growth and footfalls.

Last year, some of the major resignations were the promoter of Shoppers Stop, Chandru Raheja. He took his retirement as chairman of the company and non-executive vice chairman BS Nagesh took his role. Besides, Govind Shrikhande also announced retirement as he was replaced by Rajiv Suri who joined the company in January as CEO. Govind Shrikhande served as MD for eight years.

Rajiv Suri is planning to focus on in-house brands, as part of its efforts to improve operating margins. It is observed that most of its competitors like Reliance Trend to Future Lifestyle Fashion are selling a higher percentage of own labels to earn more profits.

As per reports, Trent gets nearly 90% through private labels, while it is nearly 60% at Pantaloons and 30% for Central. In FY 2018, in comparison to this, the share of private labels within Shoppers Stop has been consistently falling, from 14.1% in FY15 to 10%.

Rajiv Suri also said that there were issues around design, fashionability, fit and fabrics. However, the company has recently hired a head of design for its in-house brands and invested in a testing lab and studio.

The post Shoppers Stop Looking Forward to Boost Its Profitability appeared first on Money Classic Research | Intraday tips and trading strategies.