Govind Shrikhande, who joined Raheja-controlled Shoppers Stop eight years ago as vice-president, took over from B S Nagesh as the managing director and chief executive officer on Tuesday. Shoppers Stop just turned profitable in the June quarter after posting losses in 2008-09. In a telephonic chat with Raghavendra Kamath, he charts out the company’s growth plans. Edited excerpts:
How will you steer the company in the current conditions, when shoppers are spending less on discretionary items such as apparel?
We are already seeing a couple of positive developments. First, the economy is clearly on the revival path and second, the base of the higher middle class and above, who are our main customers, are growing, their incomes are growing. The market will continue to grow in this segment and we are well placed to take advantage of this demand.
The company has turned profitable in Q1. What will be your strategy?
In Q1, when the market was not good and the economy was slow, we focussed on bottomline. In the current quarter and coming quarters, we will push topline. We will try and maintain the costs at the levels we have brought down.
But your same-store sales are dwindling continuously
It has been improving continuously. July has been good and August was better, till the time the swine flu scare started.
What will be the three focus areas for you?
First, making the brand stronger than what it is today. Second, focus more on customers and third, focus on profitability.
Where do you want to see this company in the next five years?
Not looked at that for now, since I have taken over today. But we would want to open 12-20 stores in the next three years and grow the business by 60-70 per cent from the current size.
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What is happening to your rights issue?
The board has not taken any decision on the timing of the issue so far. Since the market is reviving, I believe the board will take a call in 60-90 days.
What have you learnt from Nagesh in the last eight years?
His passion for the business, for people, customers, on systems, relations with partners and making the brand stronger.