Leading retail group Shopper's Stop plans to open 12 more outlets with a total area of 650,000 sq ft in the next three years.

A company official close to development informed that the firm intends to take advantage of recent fall in mall rentals, reversal of service tax thereon and possible revival in the economy.

It should be noted that Mall rentals have fallen 35% to 40% in some cities from their peak during the past couple of years.

The company plans to open four stores this fiscal, in Bangalore, Ahmedabad and Hyderabad, and four each in the next two fiscals, each store measuring around 55,000 sq ft.

According to an estimate, the firm required a capex of Rs 91 crore on the store openings and Rs 32.50 crore on the inventory for these 12 stores, which it is planning to raise through internal accruals, debt and possible equity infusion.

Apart from the latest development, the company has decided to shut unprofitable stores and unviable ventures to save cash during the downturn. Shoppers Stop closed down over a dozen unviable stores in FY 2009.

In recently announced results, the company reported a 9 per cent increase in gross retail turnover to Rs 346.8 crore for the fourth quarter ended March 31, 2009.

The company had a gross retail turnover of Rs 319.5 crore during the same period last year.

(Via StockWatch. Contributed by Rupinder Khatra)