KOLKATA: There is a strong buzz in retail circles that Shopper’s Stop, promoted by the K Raheja Group, is tying up with Macy’s Inc of the US, the world’s largest retailer of fashion apparel, accessories, cosmetics and home furnishing merchandise.
Sheetal Choksey, vice-president, marketing communications told DNA Money: “Currently, we do not have such plans.” An e-mail sent to Macy’s Inc offices yielded no response.
However, sources said that discussions between both players have been on for quite some time.
Sources further indicated that, Shopper’s Stop may become the licensee for Macy’s brands in India. In that event, Macy’s, in turn, will get a franchise fee for letting Shopper’s Stop use its brand name.
Said a source: “Internationally, Macy’s is a highly respected brand name. Shopper’s Stop has been thinking high-end for some time and the tie-up will give the chain access to a host of premium international brands.”
Added the source: “Globally, Macy’s has a mass premium positioning, somewhat similar to Shopper’s Stop’s branding in India. So, it will be a good fit, if the tie-up does happen.”
Macy’s retails 1,000-odd brands. Previously know as the Federated Department Stores, it also owns the upscale Bloomingdales Stores and initiated a name change earlier this year to become Macy’s Inc, considering that this brand contributes 90% of its sales.
More than 850 stores under the Macy’s and Bloomindales branding operate across 45 states in the US, the District of Columbia, Guam and Puerto Rico.
According to another retail analyst, the prospective tie-up would give Macy’s an opportunity to test India — one of the largest luxury markets waiting to explode.
Shopper’s Stop, it is learnt, is planning a rights issue of up to Rs 500 crore ($125 million) to fund its expansion plans. Recently it opened its latest and the largest lifestyle store in the country, at 1.35 lakh sq ft, in Rajouri Gardens, New Delhi. About 23 stores are spread across more than 12.5 lakh sq ft of space.
Shopper’s Stop is looking to set up 2-3 more stores, averaging 60,000 sq ft, mainly in the geographical locations it already has a presence in.
