Shoppers’ Stop is planning to cart in Macy’s products

Analysts say the pact may help the local retail chain gain access to premium global labels

KOLKATA: If things go as per plans, shopping for Macy’s products at Shopper’s Stop outlets could become a reality soon.

K Raheja Corp’s Shoppers Stops’ is said to be holding parleys with Macy’s Inc, the world’s largest retailer of fashion apparel, cosmetics and home furnishing merchandise, for retailing the US chain’s private labels in India.

Govind Shrikhande, CEO, Shopper’s Stop told DNA Money: “There have been some basic discussions on product placement.”
Due to Macy’s “internal problems,” the discussions hit a roadblock. “But, the idea of retailing Macy’s products can become a possibility in the future,” Shrikhande said.

According to US media reports, last year Macy’s had been under pressure to stem declining sales at stores acquired through a merger with the May Department Stores Co.

Macy’s chief executive Terry Lundgren had also been forced to backtrack, according to the New York Post, on one of his key strategies, the sharp reduction of discounts at former May stores.

Macy’s retails 1,000-odd brands. Previously known as the Federated Department Stores, it also owns the upscale Bloomingdales stores. It initiated a name change last year to become Macy’s Inc considering that this brand contributes 90% of its sales. More than 850 stores under the Macy’s and Bloomingdales branding operate across 45 states in the US, the District of Columbia, Guam and Puerto Rico.

Shrikhande said Macy’s already sources products from India and Shopper’s Stop’s proposal was to stock those products that the US chain already sources from here.

An analyst said, “Internationally, Macy’s is a highly respected brand name. Shopper’s Stop is thinking high-end. Thus, the tie-up can give the chain access to a host of premium international brands.”

Shopper’s Stop is now consciously gunning for a premium positioning with a thrust on stocking more premium brands. Of late, one may see more of YSL, Tommy Hilfiger, Espirit, Armani products finding place beside the retailer’s home-grown lifestyle labels.

The positioning is shifting from that of a “house of brands for families” to that of a “house of brands for fashionable families”.

Shopper’s Stop expects to close fiscal 2008-09 with a sales turnover of Rs 1,100 crore. The chain is expecting the new positioning to reap an average growth rate of 40-50% per annum over the next three years.

Following up on its tie-up with UK-based Mother Care, Shopper’s Stop is now looking out for exclusive tie-ups with large overseas retail chains for products and brands, according to Shrikhande. These would be particularly in the apparel and cosmetics space. “We are not specifically looking at licensing deals but tie-ups,” he said.

m_madhumita@dnaindia.net