IndiaRetailBiz

Despite negative footfalls since November-December last year with no signs of increase in consumer spending, Shoppers Stop may be required to begin hiring people for new stores being opened for several of its retail chains in the coming few months.

Although, Shoppers Stop, among the country’s largest department format, lifestyle retailer, is not expecting any significant increase in consumer spending until February, 2010, it will be required to hire people as it is planning to open new stores of several of its retail chains in the next few months.

Interestingly, the expected increase in consumer spending from early 2010 will be more cosmetic than real, according to Shoppers Stop’s Vice Chairman B S Nagesh, since the increase will be calculated on lower base of consumer spending last year.

After incurring huge losses, in 2001, Shoppers Stop, again went into red during 2008-09 with the reported loss of Rs 15 crore. This happened as the retailer had to face the double whammy of falling footfalls and declining average spending by customer during the year.

In fact, as part of cost cutting strategy during difficult times, Shoppers Stop chose to reduce staff strength as it did not replace 300-odd Associates (shop floor assistants), who left the company on their own. The existing top honchos of the company also agreed to take a salary cut of 15 per cent during the difficult period.

Although, Shoppers Stop is planning to add 23 stores to the existing 27 stores in the flagship retail chain in the long run, the retailer post October 2009 is expecting to hire about 1,000 new people in the next six months. These people will be hired for 4 to 5 new stores of Shopper Stop chain as well as 3 new stores (Ahmedabad, Bangalore, Hyderabad) of HyperCity hypermarket format chain.

“We are opening 4-5 Shoppers. They would require about 450-500 people. We have also planned three HyperCity stores and that again would need 500 people,” said Nagesh while talking to media persons in Mumbai on the sidelines of a conference on Tuesday. The company is also looking at adding 5 to 10 stores of Crossword books leisure chain in the coming months.

Shoppers Stop currently employs around 3,000 employees and addition of 1,000 new employees would mean an increase in the workforce of one-third. The retailer is making an outlay of Rs 7 to 8 crore on this expansion, said Nagesh.

HyperCity retail chain, which currently operates 4 store across the country, is partially owned by Shoppers Stop. The retailer has the option of increasing its current ownership of 19 per cent to 51 per cent by June, 2010.