According to Shoppers' Stop Ltd senior manager (distribution and logistics) Prasad Chandratre: "Shoppers' Stop sells brands and in-house manufactured private labels. The in-house private labels are manufactured through licensee vendors. The four private labels will be displayed on the retail floor shop for sale. The various categories in labels are classic labels, value for money labels and fashion labels."

The private labels are priced in the premium end, and start from Rs 350 onwards. Adds Mr Chandratre: "The company has 10 exclusive licensee manufacturers and 300 vendors across major cities. Shoppers' Stop also stocks a combination of 250 brands such as `Arrow', `Provogue', among others, across major cities. While the gents category is recognised by brands, the ladies category is typically known by labels."

Further, adds Mr Chandratre, Shoppers' Stop is also creating value for in-house labels in various other departmental stores.

According to Mr Chandratre: "With an investment of Rs 50 lakh, Shoppers' Stop plans to manufacture and market 5 million items of private labels per annum which will be supplied by licensee manufacturers into the company-owned distribution centres and to other departmental stores."

Shoppers' Stop has three distribution centres located in Mumbai, Delhi and Bangalore.

"These distribution centres help us consolidate the inventory, because even as the Shoppers' Stop outlets expand across major cities, the company cannot spread the inventory across many distribution centres, because in the fashion line obsolescence occurs very fast. Thus, we need to consolidate the inventory as far as possible," says Mr Chandratre.

Says Mr Chandratre: "The total size of in-house private labels is Rs 40 crore and the company expects the labels market to growfrom 20 per cent at present to 35 per cent this year."

Shoppers' Stop targets a sales turnover to touch Rs 200 crore by the end of this year. Shoppers' Stop plans to add three retail stores in Pune in the month of May, at Bandra in Mumbai in October and in Delhi by this year end.

The new outlet at Bandra will be opened in the next six months. The retail outlet will be spread over an area of one lakh sq ft in Bandra.