If it ain’t broke, why fix it?

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: changing times and the changing demographics of India. Today 55% of India’s population is below the age group of 25 and with emergence of sectors like BPO, today’s youngsters have access to higher income and they have become more trendy as a consumer class.”

Given that, it makes sense for Shoppers Stop to change its corporate outlook to catch up with the fast changing norms of the Rs 40,000 crore retail market in India. “Shoppers Stop may be trying to bring in more of international departmental store shopping expertise to India,” adds Vedamani. “The new corporate look suggests that it may also look at introducing international fashion trends and brands in India.”

Ashutosh Limaye, an analyst from Jones Lang LaSalle Meghraj, concurs. “Over the years brands tend to lose their novelty value and boredom seeps in. Such re-branding exercises bring back the freshness.” Limaye believes the core principles of the Shoppers Stop strategy will remain the same. The value additions will be in the form of staff nurturing and grooming and, therefore, contemporary customers services.

If recent media reports are anything to go by, Shoppers Stop is working on launching new formats like boutique, high-end stores and outlets that serve smaller customer segments.

That would be a long way from the day Shoppers Stop started its journey in 1991 in Andheri, Mumbai, from inside a theatre. Mind you, Shoppers Stop has always been a fast learner. Starting as a men’s only ready-to-wear store spanning 2,850 square feet, the company expanded its store to cover 10,000 square feet in its very first year. At the end of 1992 Shoppers Stop introduced the women’s and children’s sections.

The next big step was when the company launched institutional sales in 1993. This involved taking up bulk orders from customers who were not the end users, like sales to corporate clients, sale of gift hampers and gift vouchers, dress kits etc.

By March 1994 the store had expanded across 50,000 square feet. The first international product that the company launched was a perfume brand, Drakkanoire.

Says Nagesh, “The positioning of the company has always been upper end. Over the years, the ratio of small cars to big cars to Shoppers Stop (Andheri) has changed from 80:20 to 20:80.”

Govind Shrikhande, customer care associate and CEO Shoppers Stop, adds, “We continue to grow our gross margins and shrinkage has been maintained below 0.5% levels, which is lower than the international benchmark.”