Retailers like Shoppers Stop and Walmart have drawn up huge investment plans to expand their physical and online presence as the industry faces dwindling sales and profits.
While Shoppers Stop is planning to invest Rs. 140 crore for expansion of its stores and online sale infrastructure within next one year, Walmart is seriously looking at opening 50 stores over next five years.
“We have chalked out Rs. 140 crore capex plan over next 12-15 months, which include investment of Rs. 35 crore on development of technology and infrastructure for the omni channel, which is a combination of physical store and online site,” Shoppers Stop said.
“We have 73 stores now. We will be opening six Shoppers Stop stores, three HyperCity stores and five speciality stores during the next 12 months,” Mr. Govind Shrikhande, managing director of Shoppers Stop said.
Walmart India, which became a 100 per cent subsidiary of Walmart Inc last year following the break-up of its joint venture with Bharti group, has plans to open 50 stores across over the next five years.
“We are focused on cash-and-carry business. We have plans to open 50 stores in the next five years. We already have 20 stores and the 21st store will be opened in Agra in September,” Walmart India president and chief executive Krish Iyer said. “We want to grow in the B-to-B cash-and-carry and online businesses as well,” he added.
Even though Walmart is currently focused on Andhra and Telangana to fuel its expansion, it is also eyeing the Northern states. In Andhra and Telangana, the brand plans to open cash-n-carry stores. It is also looking at expanding business in Delhi, Utter Pradesh, Punjab, Haryana and Rajasthan.