2009

Shoppers’ Stop

Submitted to:
Prof. Pravin Patil
Submitted by:
Saumya Gupta
Srusti Shrestha Panda
7/10/2009
 Acknowledgements

The toughest of endeavors in this world is not possible without the support of a helping hand
which guides and motivates a person to take on any challenge head on. Inputs from such helping
hand are always like very essential because more often or not certain mistakes which go
unnoticed from our eyes.

We are indebted to our Prof. Pravin Patil, ICFAI Business School, Pune for giving us such a nice
opportunity to work something related to practical exposure of retail industry & extending his
untiring guidance to us, by constantly discussing the project matter and helping us in clarifying our
thinking in several pertinent issues and providing a meaning full insight into the subject.
 Shoppers’s Stop
“The tapestry of history has no point at which you can cut it and leave the design intelligible.”

The foundation of Shoppers' Stop was laid on October 27, 1991 by the K. Raheja group of
companies, one of India's biggest hospitality and real estate players. The Group crossed yet
another milestone with itslifestyle venture-Shoppers' Stop. With its immense expertise in the
service industry and creditability, Shoppers' Stop today boasts of 27 retail outlets across the
country and is planning to spread its wings with futuristic expansion plans to meet the challenges
of the retail industry. A benchmark for the Indian retail industry to follow, Shoppers' Stop has
progressed from a single brand shop to a Fashion & Lifestyle store for the families. Shoppers'
Stop is a household name, known for its superior quality products, services and above all, a
complete shopping experience.

Shoppers' Stop was the first to redefine shopping experience and creating a niche for itself in the
service industry. As India's first specialty chain with outlets in Mumbai, Bangalore, Delhi,
Hyderabad, Jaipur and Chennai, Shoppers' Stop offers a complete range of garments and
accessories for the entire family. More than 25,000 customers walk into Shoppers Stop everyday to
feel the experience of shopping. Andheri was the first store to be opened in India. The initiative of
this store was taken by B.S.Nagesh at a time when the concept of retail industry was just coming
into the market. As on today, the current investors in Shoppers‘ Stop are ICICI, IL&FS Investments
and Zodiac clothing. Their combined shareholding in Shoppers Stop is 19% while 79% is held by
Raheja Group & balance 2% is held by its employees.
Corporate profile:

Vision: To be a global retailer in India & maintain no.1 position in Indian market in Department
Store Category.

Mission:
“Nothing but the best”

To strive & achieve nothing but the best in terms of processes, practices & deliverables.

Values:
The following values help Shoppers‘ Stop in achieving its mission & vision:

 We shall not take what is not ours

 The Obligation to Dissent (against a viewpoint that is not acceptable)
 We shall have an environment conducive to openness
 We shall believe in innovation
 We shall have an environment conducive to development
 We shall have the willingness to apologize and/or forgive
 We shall respect our customer's rights
 We shall be fair.

Management:

B.S. Nagesh (Customer Care associate & Managing Director)

Govind Shrikhande (Associate Director & CEO)

Business Partners:
Launched as India's premier retail chain for branded apparel and accessories, Shoppers' Stop has
systematically progressed from only branded apparel to private label garments to home furnishings,
and finally into books and music - all focused on our customers' lifestyle requirements and
aspirations.
In 2000, SSL diversified into Bookstore Retailing by acquiring 51% stake in
Crossword which it later increased to 100% in 2005. SSL has also ventured into various
categories like cosmetics through MAC, mother and infant care through Mothercare, home
solutions through Home Stop, food and beverages (F&B) through Brio and Desi Café, gaming
and entertainment through Timezone, Ladies non-apparel and accessories through its luxury
format, Arcelia, and into airport retailing through its 50:50 joint venture (JV) with the Nuance
group. SSL also has 19% stake in the hyper-mart format of HyperCity and has plans to increase
it by 51% by end of June-2010.

Shoppers‘s Store‘s sister store are:

Crossword Bookstores

Crossword Bookstores is a chain of largest bookstores in India with 52 branches. Shoppers Stop
acquired 100 per cent stake in bookstore chain Crossword. Crossword is positioned as a lifestyle
bookstore with their spacious, well laid out stores which encourages customers ease in browsing
through the merchandise of books, music, stationary and toys.

Home Stop

HomeStop is premium home furnishings home concept store, which offers products in home decor,
furniture and accessories, bath accessories, bedroom furnishings, mattresses, draperies, carpets,
modular kitchens and health equipment.
Brio

Brio makes Shopper‘s Stop Ltd.'s foray into Food and Beverage which was a step towards
―franchised coffee bars‖. Brio – the café bistro is designed provides customers a place to relax,
revive and reflect. It has a classic yet sophisticated ambiance. Brio has 20 outlets in select cities.
Cafe Coffee Day (CCD), the retail division of Amalgamated Bean Coffee Trading (ABCTL), has
signed an MoU with Shoppers Stop to run its BRIO outlets.

Desi Cafe

Desi Café and their operations have been taken over by Cafe Coffee Day (CCD), the retail division
of Amalgamated Bean Coffee Trading (ABCTL), has signed an MoU with Shoppers Stop to run its
Desi Cafe outlets.

Hyper City

HyperCity provides customers a wide variety of range of products for shopping in a large and
modern retail environment. It offers a contemporary range of products, sourced from both local and
international markets. The product range covers: Foods and Grocery, Homeware, Home
Entertainment, Hi-Tech, Appliances, Furniture, Sports, Toys & Fashion.

M.A.C.

M.A.C. and Shopper‘s Stop Ltd. entered into a non exclusive retail agreement with cosmetics major
Estee Lauder to open up M.A.C. Cosmetics stores in India. M.A.C. Makeup-Art Cosmetics - the
professional brand of choice, is the first brand under the Estee lauder Group of Companies portfolio
to enter the Indian retail market. Currently there are 9 M.A.C. stores operating

Arcelia

Arcelia is a new retail concept aiming at the growing accessories and cosmetics segment, with a
strong emphasis on experience and indulgence and primarily caters to discerning women shoppers.
It retails cosmetics, fragrances, fine jewelry, footwear, handbags.
Mother Care

MotherCare and Shoppers Stop come together to introduce products for infant and toddler care
which stocks a variety of products for mother and babies, toddlers and children till eight years of
age with the focus being on style, function and safety.

Nuance Group

Nuance Group with Shoppers Stop makes an entry into airport retailing. The alliance is marked
with a joint venture with The Nuance Group AG of Switzerland, the world‘s leading airport retailer.
Shopper's Stop Ltd. is handling the retail operations at the duty free zones in international terminals.
The joint venture company, called Nuance Group (India) Private Limited. is operating outlets at the
International airports at Bengaluru and Hyderabad.

Hyper City-Argos

HyperCity-Argos and Shoppers Stop, the two retail ventures of K Raheja group had signed a
memorandum of understanding with UK‘s leading retail chain Home Retail group to develop the
Argos (retailer) retail format stores in India. Two years later, Shoppers Stop Ltd has informed
Bombay Stock Exchange shall wind down and discontinue its catalogue retail operations under the
Hypercity-Argos brand.

Time zone

Shoppers Stop forayed into the Entertainment sector by acquiring 45% stake in Timezone
Entertainment Private Limited which is in the business of setting up and operating Family
Entertainment Centers (FECs). It has 5 outlets in Ahmedabad, Hyderabad, Kolkata, Navi Mumbai
and Mumbai.
Customer Profile:
Shoppers‘ Stop‘s customers fall between the age group of 16 years to 35 years, the majority of them
being families and young couples with a monthly household income above Rs. 20000 and an annual
spend of Rs.15000. A large number of Non - Resident Indians visit the shop for cultural clothes in
the international environment they are used to which means people from abroad are also interested
in shopping in Shopper‘s stop. Their target customers are upper middle class and upper class.

Customer Rewards:

Shoppers Stop‘s customer loyalty program is

called The First Citizen. The program offers
its members an opportunity to collect points
and avail of special benefits. Currently,
Shoppers‘ Stop has a database of over 2.5
lakh members who contribute to nearly 65%
of the total sales of Shoppers‘ Stop. They also
offer a co-branded credit card with Citibank
for their members.

International Affiliations:
Shoppers‘ Stop is the only retailer from India to become a member of the prestigious
Intercontinental Group of Departmental Stores (IGDS). The IGDS consists of 29 experienced
retailers from all over the world, which include established stores like Selfridges (England),
Karstadt (Germany), Shanghai No. 1 (China), Matahari (Indonesia), Takashimaya (Japan), C K
Tang (Singapore), Manor (Switzerland) and Lamcy Plaza (Dubai). This membership is restricted to
one member organization per country/region.
Objective of Shoppers’ Stop:

Their main objective is to make their customer satisfy and then profit through sales, employee
added after all every organization works to earn money which is possible through good sales and if
our customers are not satisfy then it will be difficult for us. So we put our effort on retaining our
customers because retaining old customers is more profitable than making new customers. And if
we analyze this statement then we come to know that their 65% of their customers are their first
citizen customers. Today people goes for variety and shoppers stop is doing that, they offer total
250 brands to their customers which act as their strength and help them retaining as well as making
new customers. They believe in producing quality so they offer quality products basically
international brands like Louis Phillip, Black Berry, Police, DKNY, Ferrari, etc. Shoppers‘ Stop
aims to position itself as a global retailer. The company intends to bring the world‘s best retail
technology, retail practices and sales to India. Currently, they are adding 4 to 5 new stores every
year

Types of Retail Outlets:

Shopper‘s Stop is known as multi-Brand retail outlet because of their verity of Products. They offer
various products like apparels, Accessories, Toys, Fragrances, Beauty Products, Travelling
products, Home Appliances, etc.

They offer various products like Apparels, Fragrance & Beauty, Home & Travel, Gift ideas. Under
this they have different Categories, Brands and Styles to offer customers. They have many other
showrooms of Shopper‘s Stop in Delhi and NCR, so we can say that they have long chain of retail
outlets. They also offer online purchasing which means that they are using new technology to
increase their sales.
Brands Offered:

Shoppers Stop retails products of domestic

and international brands such as Louis
Philippe, Pepe, Arrow, BIBA, Gini & Jony,
Carbon, Corelle, Magppie, Nike, Reebok,
LEGO, and Mattel. Shoppers Stop retails
merchandise under its own labels, such as
STOP, Kashish, LIFE and Vettorio Fratini,
Elliza Donatein, Acropolis etc. The company
also licensees for Austin Reed (London), an
international brand, who‘s mens‘ and
womens‘ outerwear are retailed in India
exclusively through the chain.
Different brands offered under each category are given as billow:

APPARELS

 Arrow  Orly
 Louis Phillipie  Lee
 Park Avenue Parx  Levice
 Van Heusen  Pepe
 Zodiac  Killer
 Stop  Lee Cooper
 Caliber  Wrangler
 Blackberries  Spykar
 Scullers  Life
 Givo  Allen Solly
 Provouge
 Wills

Jewellery Music  Pedrini

 Pyren
 Facet  Planet M
 Carbon  Music World Hair Styling
 Sparkles  Habbibs
Home Décor
 Tanishq FQ
Books
 Swaroski  Yamini
 Crossword
 Gili  Four Seasons
 Oyzsterbay  Viva
 Sarvoski  Welspun
 Estelle  Borosil
 Corning Ware
 Fragrances  J'del Pozo Watches
 Christian Dior  Myrurgia  Casio
 Ysl  Etienne Aiger  Esprit
 Davidoff  Xm  Fossil
 Joop  Titan
Sunglasses
 Diesel
 Ray Ban Shoes
 Lancaster
 Nicos  Lee Cooper
 Red Tape
 Jil Sander
 Calvin Klein  Picasso
 Boucheron  Stop
 Police  Life

Stores

Shoppers Stop is one of the leading retail stores in India. Shoppers Stop began by operating a chain of
department stores under the name ―Shoppers‘ Stop‖ in India. Currently Shoppers Stop has twenty seven
(27) stores across the country and three stores under the name HomeStop. Shoppers Stop has also begun
operating a number of specialty stores, namely Crossword Bookstores, Mothercare, Brio, Desi Café,
Arcelia.

Shoppers Stop retails a range of branded apparel and private label under the following categories of
apparel, footwear, fashion jewellery, leather products, accessories and home products. These are
complemented by cafe, food, entertainment, personal care and various beauty related services.
The list of main stores are given billow:

North

New Delhi Jaipur Gurgaon

• Andrew Ganj, Near • Gaurav towers 2, • Mgf, Metropolitian
south extension, plot no 2, mall Mehrauli-
Khel Gaon Marg, Indira palace, gurgaon road,
New Delhi - 110049 Malviya Nagar, Gurgaon,Haryana
Jaipur - 302017.
 East

Kolkata
10/3 Lala Lajpatrai road (Elgin
road),
Kolkata-700020.

West

Andheri Chembur(Mumbai)
(Mumbai)
• Krushal commercial complex,
• 211-D, S.V. road, M.G. Road,
Andheri (west), nr. Chembur flyover,
Mumbai-400058. Mumbai - 400079.

Mulund Bandra
(Mumbai) (Mumbai)
• Nirmal lifestyle, L.B.S • Suburbia, linking road,
Bandra (west), Mumbai -
marg, Mulund (w) 400050.

Kandivili(Mumbai Pune
)41, Naman Plaza, Wakdewadi,
opposite Thatai Bhatia Hall, Mumbai-Pune highway,
Shanker lane, S.V. road, Shivaji nagar,
Kandivili (west). Pune-411005.
 South

Bangalore Chennai Hyderabad

Raheja point, No.2 Harrington Opp. Alladin mansion,
17/2 Ashok nagar, road, 1-22-251/1,
Magrath road, Chetput, Begumpet, Hyderabad
Bangalore-560025 Chennai-600031. -500016.

Marketing Strategies followed by Shoppers’ Stop

Discounts and brand promotion
Shoppers’ Stop with “OM SHANTI OM”

Shoppers’ stop trough internet

Shoppers‘ Stop basically follows 2 marketing strategies:

1. Guerrilla marketing
2. Interactive marketing

1. Guerrilla marketing is an unconventional system of promotions that relies on time, energy and
imagination rather than a big marketing budget. Typically, guerrilla marketing tactics are
unexpected and unconventional; consumers are targeted in unexpected places, which can make
the idea that's being marketed memorable, generate buzz, and even spread virally. Guerilla
Marketing involves unusual approaches such as intercept encounters in public places, street
giveaways of products, pr stunts, any unconventional marketing intended to get maximum results
from minimal resources. More innovative approaches to Guerilla marketing now utilize cutting
edge mobile digital technologies to really engage the consumer and create a memorable brand
experience.

Principles of guerrilla marketing

Guerrilla Marketing is specifically geared for the small business and entrepreneur.
It should be based on human psychology instead of experience, judgment, and guesswork.
Instead of money, the primary investments of marketing should be time, energy, and
imagination.
The primary statistic to measure your business is the amount of profits, not sales.
The marketer should also concentrate on how many new relationships are made each month.
Create a standard of excellence with an acute focus instead of trying to diversify by offering
too many diverse products and services.
Instead of concentrating on getting new customers, aim for more referrals, more transactions
with existing customers, and larger transactions.
Forget about the competition and concentrate more on cooperating with other businesses.
Guerrilla Marketers should always use a combination of marketing methods for a campaign.
Use current technology as a tool to empower your business.

2. Interactive marketing is a strategies adopted by then retailers where they allow customers to
customize the product as per their preference. This strategy is mainly followed by service
industries like hotels but Shoppers‘ Stop is able to carve out this facility in a retail store.
The concept that has already made a debut at Shoppers‘ Stop outlets in Mumbai, allows
customers — who are referred to as guests — to go through various stages of activity in creating
their own teddy bear (or other stuffed toy), including choosing a stuffed animal, stuffing it, giving
it a heart, stitching, fluffing, naming and dressing it.

And though the toys are priced at a premium level ranging between Rs 595 and Rs 1,295 for a
stuffed animal and add-ons such as sound chips, clothes and accessories coming at extra cost —
 the interactive shopping experience also adds on an element of entertainment for young customers
and can turn into a family affair as well.

Use of CRM, ERP & SCM at Shoppers’ Stop:

CRM:
Retail chain Shoppers‘ Stop Ltd, is eyeing over 50 per cent sales this year from its customer relationship
management (CRM) initiatives. The company has also lined up an aggressive expansion plan targeting
smaller towns and cities in the country.

BS Nagesh, managing director and CEO of Shoppers‘ Stop, told FE that the company has given a new
direction to its CRM initiatives after it acquired a business intelligence software called ‗Business
Solutions‘ about eight months ago.

The new software helps generate intelligent data from Shoppers‘ Stop customer base of about 2,30,000.
The company then collects this data and touches base with customers via direct mailers informing them
of all new promotions that is currently on and also updates them about the upcoming events.

Shoppers‘ Stop claims that it has taken its CRM initiatives to a new height and now calls it‘s loyalty
programmes Customer Experience Management.

―If we find from the data that a customer had bought a pair of trousers, we tell him about a new range of
shirts that we have just brought into our store,‖ says Mr Nagesh.

―We are planning to open 35 outlets within the next three years. We have identified 21 new locations
including Kanpur, Amritsar, Jalandhar, Ahmedabad and Indore, among others to set up these outlets,‖ Mr
Nagesh said.
ERP:
Shoppers‘ Stop was the first few retailers to use scanners and barcodes and completely computerise its
operations. Today it is one of the few stores in India to have retail ERP (Enterprise resource planning) in
place, which is the best retail planning system in the world. With the help of the ERP, they are able to
open new stores faster and get information about merchandise and customers online, which reduces the
time in taking quick decision.

SCM:
Understanding the importance of distribution and logistics in ensuring that merchandise is available on
the shop floors has led Shoppers‘ Stop to streamline its supply chain. The company has developed
process manuals for each part of the logistics chain. These modules include vendor management,
purchase order management, stock receiving systems, purchase verification and inventory buildup, fixing
of price and store tags, dispatch of stocks to the retail floor and forwarding of bills for payment.

If we talk about various brands then the answer is that they have a direct tie ups with different companies
and companies deliver all the needed products to their door-step means deliver all the goods to every
shopper‘s stop showroom. But there are some companies which do not provide them these services so for
those they have their own carrier.

Controllable & Uncontrollable Factors

Controllable & Uncontrollable factors are those which are directly or indirectly affect the retail outlet.
The difference between these two factors is that one can be controlled by the retailer and another cannot
be controlled. The variables which are controllable can be change according to the retailers but if we talk
about uncontrollable factors then the retailer have to change him/her according to those factors. There are
various Controllable &uncontrollable Factors. When we ask about these factors to the employee of
Shopper‘s Stop, he told us the following important things:
Controllable Factors of Shopper’s Stop

 Pricing
 Store Location
 Managing a business/workforce

Pricing

He told us that setting price of a product is in our hands. This is our decision that how much profit we
want to make by selling our products. Sometimes we have to set our prices according to the competition.

Store Location

Selecting the location for the store is in the hands of retailers because before selecting the location they
have to check many factors like walking traffic, competitor, parking, infrastructure, etc. They also have to
decide that they want to buy the site or they will take it on rent. So after deciding all these things they
reach to the final decision.

Managing a Business/Workforce

He told us that managing the workforce means a lot to them, because they have to decide that what type
of people they need what type of training our employees need, and what will be the salary of our
employees.All these things can be controlled by the retailer.
Uncontrollable Factors of Shopper’s Stop

 Government Policies
 Seasons
 Inflation Rate
 Technology
 Infrastructure

Government Policies

Government policies or Legal Restriction cannot be controlled and the big example of this is ―sealing of
illegal shops‖. The taxes and duties which retailers have to pay to the government.

Seasons

He told us that natural climates cannot be controlled and they have to go according to that like in winters
they have to change their theme and products also. He also told us that a sometimes season plays a
negative role like in rainy season their sales goes down. So these things cannot be controlled and they
can only launch new marketing strategies to attract the customers.

Inflation Rate

He told us that as we all know that now inflation rate is more that 12% so it is creating more problems for
us because due to this people are getting more aware of saving money and due to which our sales is also
affected. If we analyze the global market then we will see that every sector is going down except one or
two. And retail sector is also not doing well these days. Against this we can‘t do anything, we can only
wait.

Technology

He told us that day by day the technology is upgrading and the problem is that the new competitor comes
with new technology because of which they also have to upgrade their technology which results more
expenditure, which is not good for any business.
Competitor’s Analysis:

In India, as we analyzed we find only few competitors for Shoppers‘ Stop & those are mainly foreign
players and also Individual stores. The name of few competitors is given below:

 Lifestyle
 Globus
 Central
 Pantaloons
 Westside
 Ebony

Situational Analysis:

Situational Analysis includes current organizational mission, current ownership and management
alternatives, and current goods/services category. As we have explained above about the mission
management alternatives, current products, so now here we have done the SWOT analysis of Shopper‘s
Stop.

Strength

 Variety
 Range
 Different Brands
 Pioneer
 Loyal customer
 Low risk
 Good financial position
 Presence across various segments
 Parikrama the festival
Weakness

 Very high prices: They provide international Brands due to which their prices are very high.
 Less Schemes: They do not offer so much schemes, they offer schemes only on special occasions
like Diwali, Independence Day, etc.
 Less Discounts : They offer less discount in their schemes, they basically offer 10% to 20%
discount
 Competition from standalone stores
 Late entry into value retailing
 Store makeover expenditure

Threats

 Government Policies
 Entrance of New Players
 High attrition
 Lesser consumer spending
 Entry of foreign players
 Unorganized sector
 Independent stores

Opportunities

 Awareness about the brands

 Quality
 Youngsters
 Higher disposable income
 Collaborate
 Private levels
 Tier 2 & tier 3 cities
 Enter new consumer goods segments.
Financial Condition of Shoppers’ Stop:

Shoppers Stop clocked 9% growth in SPSF in FY2008 to Rs8,671 (Rs7,973), but registered a de-growth
of 10% in FY2009 to Rs7,800 on the back of sluggish Top-line growth. Though we believe that SSL will
take about a year to recover from the aftermath of the ongoing economic slowdown on its Lifestyle
Retailing business, we expect spending to pick up in FY2011. We estimate SSL's SPSF to post a CAGR
of 9% over FY2009-11E to Rs9,205, albeit on a comparatively lower base of FY2009 SPSF. This can be
explained with the help of the following graph:

Suggestions:
 They should introduce more schemes, discounts, sales to increase the sales.
 They should introduce Low rate Brands which will attract the middle class customers also or
brands for masses.
 The stores becomes a bit messy because of a large footfall & small size of stores so they should
have larger outlets
 They offer parking space only for the ―first citizen‖ card holders which acts as a constraint for
many first visitors to visit the malls.
 Shoppers stop‘s competitors used aggressive medium of advertisement like television commercial
ads, thus to gain a competitive advantage over the competitors Shoppers Stop should also use
such medium of marketing.
Bibliography:
1. www.shoppersstop.com

2. www.angelbroking.com

3. www.scribd.com

4. www.financialexpress.com

5. www.economictimes.com