IndiaRetailBiz

Shopper’s Stop Ltd (SSL), the country’s second largest listed retailer, owned by construction major K. Raheja group, has planned to roll out 320 stores by 2011. The group has been delayed in realising its expansion plans by a year or so due to construction delays. The group has planned to establish its presence in 50 cities across the country, in the next four years.

The expansion plans, according to a DNA Money report, including expanding the number of Shoppers’ Stop stores from 20 to 49, HyperCity hypermarket stores from one to 20, and ’speciality’ brand formats like MotherCare, Crossword, Brio, and others like HomeStop, MAC, Desi Café put together to 250 stores, during the next four years. This was revealed by B S Nagesh, CCA, MD and CEO of SSL.

The group is mulling over raising up to Rs. 500 crore, in the next two quarters, through Right Issue, to fund expansion plans. SSL Board is likely decide on this by the end of this month, said Nagesh.

Shoppers’ Stop which holds 19% stake in HyperCity’s equity has the option of converting into a holding company by acquiring additional stake of 32% by December, 2007, at a predetermined price calculated at the cost of investment in HyperCity plus interest @10% per annum from the date of such investment in the company. Shoppers’ Stop has already expressed its interest to covert HyperCity as its holding company.