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Stop Limited
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Table of Contents
Figure 1-1: India - Market Value of Organized & Unorganized Retailing (in Billion US$), 2006................... 6
Figure 1-2: India - Rural & Urban Retail Market (in Billion US$), 2006 ........................................................ 7
Figure 1-3: India - Retail Market Segmentation (%), 2006 ........................................................................... 8
Figure 1-4: India - Growth Rate of Retail Formats (%), 2006 ....................................................................... 9
List of Tables:
Table 1-1: India - Urban Retail Market Split (%), 2006 ................................................................................. 7
Table 1-2: India - Major Specialty Store Players by Brand, 2006 ................................................................. 9
Table 2-1: Shopper’s Stop Limited - Major Mergers & Acquisitions (2005 to 2007)................................... 13
Table 2-2: Shopper’s Stop Limited - Ticker Codes at various Stock Exchanges ....................................... 13
Table 2-3: Shopper’s Stop Limited - Key Management People.................................................................. 14
Table 6-1: Future Group - Income Statement (in Rs Lakh), 2006 .............................................................. 21
Table 6-2: Trent Ltd. - Income Statement (in Million Rs), 2005 & 2006 ..................................................... 22
Table 6-3: Bata India Ltd. - Income Statement (in Million Rs), 2005 & 2006.............................................. 23
Table 6-4: Videocon Appliances Ltd. - Income Statement (in Million Rs), 2005 & 2006 ............................ 24
Table 6-5: Provogue India Ltd. - Income Statement (in Million Rs), 2005 & 2006...................................... 25
1. Industry Snapshot
In the year 2006, the Indian retail market was estimated at US$ 300 Billion. Indian retail
industry is broadly divided into unorganized and organized retail sectors. With 97% of the
market share or US$ 291 Billion, the unorganized sector dominates the Indian retail market.
The rest 3%, or US$ 9 Billion is under the organized retail sector. The unorganized retail
sector comprises of large, medium and small grocery shops and drug stores.
However, the organized sector has now started strengthening itself in India. Big supermarkets
chains (domestic), franchisee outlets of MNC brands, shopping malls, specialty stores – all
come under the organized sector. And now, all these shopping formats have started to crop
up in India. But so far, organized retailing has not spread beyond big cities in the country.
Figure 1-1: India - Market Value of Organized & Unorganized Retailing (in Billion US$), 2006
350
291
300
250
in Billion US$
200
150
100
50
9
0
Organized Retailing Unorganized Retailing
Source: KSA-Technopak
The overall retail market is mainly concentrated in rural areas which accounted for 55% (or
US$ 165 Billion) of total retail market in 2006 as compared to 45% share (or US$ 135 Billion) of
urban market. The rural market is spread over 627,000 villages, though it is concentrated
around a core of 100,000 villages that account for 50% of the rural population.
Figure 1-2: India - Rural & Urban Retail Market (in Billion US$), 2006
180 165
160
135
140
in Billion US$
120
100
80
60
40
20
0
Rural Market Urban Market
Top four urban cities accounted for 16% of the total population and 20% of urban retail
market (9% of overall retail industry) in 2006. The top 784 cities alone generated US$ 105
Billion in retail sales in 2006.
City Type Population (%) Urban Retail Market (%) Cumulative Market
(Cumulative) in Billion US$
Top 4 16 20 27
Top 9 24 30 40
Top 62 43 50 67
Top 141 53 60 80
Top 338 63 70 94
Top 530 69 75 100
Top 784 74 78 105
In India, food, beverages and tobacco constituted 64% of the total retail industry in 2006.
However, 99% of this segment is unorganized. The segment is defined by low gross margins
but there appears to be a tremendous growth potential in the form of supermarkets, hard
discount chains, and hypermarkets.
Figure 1-3: India - Retail Market Segmentation (%), 2006
3% 1% 4%
5% 3%
5%
1%
2%
7%
64%
5%
There are 5-6 retailing formats that are commonly found in the countries across the world
Hypermarkets
Supermarkets
Convenience Stores
Discount Stores
Traditional Stores
In modern retailing, a key strategic choice is the format. Innovation in formats can provide an
edge to retailers. Organized retailers in India are trying a variety of formats, ranging from
discount stores, supermarkets and hypermarkets to specialty chains. The format to be
adopted by retailer in India depends upon regional demography, which has high degree of
variation from one region to another.
In 2006, specialty stores and supermarkets were the fastest growing regions (45%) while
convenience stores and e-retailing had a mere 9% share.
Figure 1-4: India - Growth Rate of Retail Formats (%), 2006
50 45
40 36
30 27
(%)
18
20
9
10
0
Specialty Stores Hypermarket Discount Stores Department Convenience
& Supermarket Stores Stores & E-
Retailing
Source: Indiabusiness
A number of players have started to operate in Indian retail market. These include names like
Godrej, Tata, and Birla Group.
Shopper’s Stop Ltd., a pioneer in setting up nation-wide chain of large format departmental
stores in India, has been promoted by K Raheja Corp Group (Chandru L. Raheja Group), one of
the leading groups in the business of real estate development and hotels in the country. Apart
from the department store chain Shopper’s Stop (20 stores), the Company has forayed into
specialty stores for books – Crossword Book Store (41 outlets), home décor – HomeStop (2
stores) and in cosmetics and maternal care through exclusive retail agreements with
international brands like M.A.C. and Mothercare (11 stores) respectively. The Company is
occupying an aggregate area of 1,152,590 sq. ft. and Crossword Bookstores Ltd. occupies
additional 201,890 sq ft.
The Company is continuously working towards enhancing customer value by applying best
practices for business excellences to achieve its services mission.
Employee Size
Employees (2006): 2,509
2.1 History
1991: The Company opened its first store at Andheri, a suburb in Mumbai selling only Men’s
wear.
1997: It launched its co-branded credit card for its loyalty members in association with HSBC.
1999: The Company implemented JDA Retail ERP (a global leader in retail ERP packages).
It also opened its fourth & fifth store in Jaipur & Delhi.
2000: The Company opened its sixth and seventh store at Chennai & Chembur, Mumbai. It
also acquired Crossword – India 's leading retail book chain.
2001: It opened its eight and ninth store in Pune and Bandra in Maharashtra.
2003: The eleventh, twelfth and thirteenth stores of the Company were opened in Mulund,
Mumbai, Gurgaon and Kolkata.
2004: It opened its fourteen, fifteen and sixteenth store in Malad, Mumbai, Kolkata and
Bangalore.
2005: It opened its seventeen, eighteen, nineteen and twentieth store in Pune, Juhu,
Mumbai, Bangalore and Ghaziabad.
The Company launched Mothercare in India and F & B outlets Brio and Desi Café.
It also signed an MoU with the Home Retail Group of UK to enter into a franchise arrangement
for the Argos formats of catalogue and Internet retailing.
Shopper’s Stop Limited is engaged in the business of retailing a range of household and
consumer products through departmental store facilities. During the year ended March 31.
2006, the Company added four new stores, taking the total store count to 20 with an area of
950,701 sq ft.
The Company’s principal activities are to provide retail range of branded and own label
apparel, footwear, perfumes, cosmetics, jewellery, leather products and accessories, home
products, books, music and toys.
Some of its brands include STOP, LIFE, KASHISH, VETTORIO FRATINI, ELLIZA DONATEIN, HAUTE
CURRY, I JEANS WEAR, INSENSE, MARIO ZEGNOTI, ACROPOLIS, INDI-VISUAL, Homestop,
Mothercare and M.A.C.
The major mergers and acquisitions undertaken by the Company from 2005 to 2007 are
summarized below in table 2-1.
Table 2-1: Shopper’s Stop Limited - Major Mergers & Acquisitions (2005 to 2007)
Shopper’s Stop Limited is listed at The Stock Exchange, Mumbai (BSE) and National Stock
Exchange of India Limited (NSE).
Table 2-2: Shopper’s Stop Limited - Ticker Codes at various Stock Exchanges
Title Name
Chairman Chandru L. Raheja
Managing Director Basavanhalli S. Nagesh
Non Executive Director Ravi C. Raheja
Non Executive Director Neel C. Raheja
Non Executive Director Vittorio L. Radice
Non Executive Director Gulu L. Mirchandani
Non Executive Director Shahzaad S. Dalal
Non Executive Director Nitin J. Sanghavi
Non Executive Director Bala Deshpande
Non Executive Director Deepak Ghaisas
Chief Executive Govind S. Shirkhande
Secretary Prashant Mehta
Executive Officer Sanjay C. Badhe
Vice President Vijay Kashyap
Chief Financial Officer Chandrashekhar B. Navalkar
Chief Technology Officer T. M. Unni Krishnan
Vice President Ajit B. Joshi
Executive Officer Salil Nair
Shopper’s Stop has leveraged a keen customer insight and sharp market understanding to
build a multi-hued brand portfolio. The Company provides services for everyone across various
age group, price points and customer preferences. It offers over 200 international and Indian
brands.
Brands:
STOP: Smart and comfortable clothing with a perfect mix of classic and contemporary
style.
LIFE: Trendy, energetic casual clothing and accessories based on global fashion trends.
KASHISH: Elegant and exquisite traditional occasion wear for the ethnic chic.
ELLIZA DONATEIN: Fashion formals styled with elegance and feminine touch for the
modern working women.
HAUTE CURRY: Young and funky ethno fusion wear for today’s young and Tran’s global
fashion divas.
I JEANS WEAR: Fashion denim wear created for the urban youth epitomizing
individuality.
INSENSE: Elegantly stylish, yet practical and comfortable women wear for social
occasions.
MARIO ZEGNOTI: Romantic fashion formals and smart casual clothing for men with
style and flamboyance.
ACROPOLIS: Basic, smart and comfortable value offerings.
INDI-VISUAL: India visualized in a T-shirt range. A shot of everything that’s inherently
Indian in the most colorful manner.
4. Business Strategies
Focus on Expansion Strategy
Shopper’s Stop has planed for expanding its existing operations by investing Rs 300 Crore and
use the money raised for setting up more outlets. The Company plans to open 50 new outlets
by the year 2010. For this expansion, it has assigned top 20 cities to set up its outlets. With
more stores planned for the coming year, Shopper’s stop is poised to achieve further
operational and supply chain efficiencies for expanding the existing outlets, including those at
the airports.
It’s expected that the opening of new stores coupled with attractive advertising enabled the
Company to attract higher number of customers in new as well as existing stores.
The Loss Prevention department, store operations and supply chain team have worked
together and monitored the shrinkage level on a monthly basis which has resulted in the
shrinkage percentage to rest at 0.41% of the turnover. The Company is trying to lower this
ratio through proper monitoring and continuously reviewing inventory management processes
and systems.
The Company continues to increasingly focus on internal growth and development of its
associates, cutting across levels and functions, through focused developmental efforts and
growth opportunities. For the year under review, the Company has provided 66 hours of
training per associate. It has been able to employ innovative strategies to attract talent from
other industries as well as from renowned educational institutions. The Company has been
able to successfully deploy initiatives to enhance an associate satisfaction level, which is
reflected in the increase in its Associate Satisfaction scores for the fourth consecutive year in
a row.
Shopper’s Stop conducts customer satisfaction surveys twice a year to measure customer
experiences and then undertake improvements in various areas. In 2005-06, it also included
select competition stores in their surveys in order to measure experience in its stores vis-a-vis
the competition.
The First Citizen program has 3 tiers, including Classic Moments (entry level), Silver Edge and
Golden Glow. Members fall into the various tiers on the basis of their expenditure. First
Citizens also earn differential reward basis on their current tier of membership. Under this,
the reward points can be redeemed for a wide variety of merchandise at the Company. This
includes exclusive schemes, benefits and promotions, extended and exclusive shopping hours
- especially during the festive season and Exclusive First Citizens lounge at select stores to
relax after hectic shopping. Through this service, First Citizens get all the information that
they want on their mobile phones simply by sending an SMS.
5. SWOT Analysis
5.1 Strength
Strong Financials
Over the period of last four years (2003-2006), Shopper’s Stop has shown a strong financial
position. Gross sales, both at chain level and for like-to-like stores, have showed a
remarkable improvement. For the fiscal year ended 31 March 2006, Shopper’s Stop Limited's
revenues increased 34% to Rs 6,775 Million (including Consignment merchandise and others).
During 2002-2006, the Company’s revenue grew at a CAGR of 25.5%. Revenues reflect higher
sales from own merchandise and an increase in other retail operating income. Operating
profit of the Company has increased by over 68% to Rs 566 Million in 2006 from Rs 336 Million
in the previous year (2005). The net profit of the Company amounted to RS 271 Million in
2006, which has increased by 42% over last year.
5.2 Weakness
In order to mitigate the risk involved, the Company enters into arrangements with vendors in
various business formats such as Outright Buy, Consignment & Concessionaire/Conducting
arrangement.
5.3 Opportunity
5.4 Threats
Intense Competition
Shopper’s Stop operates in a competitive and fragmented industry consisting of retailers,
dealers, and distributors. The leading retailers include Trent Limited (Westside), Landmark
Group (Lifestyle), RPG Enterprise and Vishal Retail Limited. The Company is also facing fierce
competition from a wide range of companies across multiple channels. In addition, mass-
market retailers such as Big Bazaar are offering consumers lower prices and the convenience
of one-stop shopping. Intense competition could result in a loss of market share for the
Company.
Business Description
The Company's principal activity is to operate retail chain stores in names of Big Bazaar, Food
Bazaar, Central and Pantaloons. The Big Bazaar is the discount store, which offers a wide
range of products under one roof. The products include apparels and non-apparels such as
utensils, sports goods and footwear. The Company has made its presence in gold retailing also
by launching Gold Bazaar. The Company's Food Bazaar provides a range of food and grocery
products ranging from fresh fruits and vegetables, staples, FMCG products and ready-to-cook
products. The Central offers a chain of stores including books and music stores, global brands
in fashion, sports and lifestyle accessories, grocery store and restaurants. Earlier, the
Company used to operate under the name Pantaloon. In March 2006, the Pantaloon Group
renamed itself as the ‘Future Group’.
Dec 2006
Gross Sales 79,548.51
Net Sales/ Income from operations 75,268.61
Other Income 3,776.70
Profit before Taxation 6,582.62
Net Profit 4,397.41
Business Description
Tata Retail Enterprise, better known as Trent, a Tata Group retail company, (formerly
Littlewoods International (India)), is in the business of retailing readymade garments for men,
women and children, household and gift items, accessories, etc. It was amalgamated with
Lakme effective on July 1, 1998 and its name changed to Trent from June 15, 1999. In India,
Trent operates the retail chain ‘Westside’. Trent Ltd currently operates 21 stores in the
major metros and mini metros in India. Boasting of a variety of designs and styles, the
merchandise at the Westside stores are an exciting mix with a range extending from
fashionable clothes, footwear and accessories for men, women and children to well-co-
coordinated table linens, artifacts, home accessories and furnishings.
Table 6-2: Trent Ltd. - Income Statement (in Million Rs), 2005 & 2006
Source: Myris
6.3 Bata India Ltd.
6A S.N. Banerjee Rd
700013 Kolkata, West Bengal
Phone: (033) 2244 3416/17/18/0456
Website: www.bataindia.com
Business Description
Bata India Ltd (BIL) is a 51% subsidiary of Bata (BN) BV of Netherlands. Bata India Limited is
India's largest manufacturer and marketer of footwear products. The Company today operates
more than 1500 retail outlets spanning the entire length and breadth of the country. It has 26
wholesale depots, serving more than 500 wholesalers.
Table 6-3: Bata India Ltd. - Income Statement (in Million Rs), 2005 & 2006
Source: Myris
Videocon Appliances Limited’s principal activity is to manufacture and market a wide range of
electrical and electronic products, which includes air conditioners, refrigerators,
programmable washing machines and assemblies and sub-assemblies. The Company has its
manufacturing plant at Aurangabad.
Table 6-4: Videocon Appliances Ltd. - Income Statement (in Million Rs), 2005 & 2006
Source: Myris
Business Description
The Group's principal activity is to design, manufacture, brand and sell ready-made garments
and other accessories under the brand Provogue. The Group's products include shirts,
trousers, T-shirts, sweaters, shorts, pajamas, suits, jackets, ties, socks, handkerchiefs, belts,
wallets, sunglasses, bags and caps. The Group distributes its products through branded stores
and a network of national chain stores and multi-brand outlets. On January 18, 2005, the
Group acquired Acme Hotels and Hospitality Pvt. Ltd.
Table 6-5: Provogue India Ltd. - Income Statement (in Million Rs), 2005 & 2006
Shopper’s Stop, a leading retail player, announced plans for expanding its existing operations
by investing Rs 300 Crore and use the monies raised for setting up more outlets.
''We will infuse Rs 300 Crore to increase our number of outlets to 50 by 2010. We have
earmarked top 20 cities to set up the stores,'' company's Customer Care Associate and
Managing Director B S Nagesh told reporters here while launching the country's largest
departmental store.
The company also plans to bring out a rights issue by the end of the year for expanding the
existing outlets, including those at the airports, said Mr Nagesh.
The new Shopper’s Stop store, presumably the largest in the country, spanning an area of
135,000sq ft, providing an overwhelming range of premium international and national brands,
opened here yesterday.
Setting up shop in 1991 with its flagship store in Andheri, Mumbai, Shopper’s Stop is a
member of the K Raheja Corp of Companies. With its wide range of merchandise, exclusive
shop-in-shop counters of international brands and world-class customer service, Shopper’s
Stop brought international standards of shopping to the Indian consumer providing them with
a world-class shopping experience.
Expanding its operations to Bangalore, Hyderabad, Jaipur, Chennai, Mumbai, Pune, Gurgaon
Kolkata and now Delhi, Shopper’s Stop is today recognised as India’s premier shopping
destination.
“Shopper’s Stop is positioned as a family store delivering a complete shopping experience
defined by its vision and values,” said a spokesperson.
Shopper’s Stop is in the process of deploying the next generation Business Intelligence (BI)
technology stack. It will also be venturing into e-commerce, informs Ranjit Satyanath, head
(Solutions & Technology) of Shopper’s Stop.
The entire cycle of the chain combines all types of data. There is employee data, for
example, which is handled by the Human Resources Management System (HRMS) application.
There is also the merchandise data, for which there is another application.
The HRMS application takes over from when the employee applies for the job. The Resource
management data comes into the picture, and approval metrics are built. Then the resources
required for his working are issued.
The merchandise data comprises of the available material and what merchandise is to be
bought. The system then issues a purchase order, which is for the amount of material
required, on a particular date. When the material is received, the system automatically marks
off the item received against the purchase order.
There is also a process where any discrepancy in the quantity is highlighted, and a quality
check is carried out for the received merchandise.
The goods are then shipped to the various stores. Each outlet in the chain has an automated
replenishment algorithm. When the quantity of merchandise reaches a particular level, a
signal is sent to the distribution center with an advice to send. There is also a pick-list, which
is a bunch of items that need to go to each store. Accordingly, the items are shipped to the
store.
When the above cycle is completed, there is a feed from the core ERP system to the finance
application, because the vendor has to be paid.
The Shopper’s Stop chain currently uses the JDA Merchandise Management System (MMS) as its
core ERP. JDA MMS addresses the basic and core retail functions within the context of
merchandise management or inventory. It runs on IBM's System i hardware platform.
The company had deployed JDA Win DSS at the Point of Sale, which is an in-store system for
distributed store systems environments.
The K Raheja group promoted retail chain, Shopper’s Stop Ltd, has posted a consolidated net
profit of Rs 26.2 Crore for the fourth quarter ended March 31 as against Rs 27.1 Crore for the
same quarter previous fiscal.
Retail turnover for the company during the quarter increased 38% to Rs 235.60 Crore as
against Rs 171.20 Crore in the year-ago period.
The board of directors has recommended a 15% dividend for the fiscal and also approved fund
raising of about Rs 500 Crore through a rights issue, said a company release.
"The results are not comparable as the company re-estimated the useful life of certain classes
of assets, resulting in higher depreciation charge by Rs 10.11 Crore during the quarter,"
Shopper’s Stop customer care associate and managing director BS Nagesh said.
During the quarter, the retailer inked a 50:50 joint venture with the Swiss group Nuance for
airport retailing and won contracts for two greenfield airports including Hyderabad and
Bangalore. Shopper’s Stop also signed a memorandum of understanding with Home Retail
Group of UK (Argos) for catalogue retail venture and acquired a 19% stake in Hypercity Retail
(India) Ltd. For the fiscal, retail turnover of the company rose 32.7% to Rs 899.50 Crore from
Rs 677.96 Crore while net profit stood at Rs 26.20 Crore as against Rs 27.10 Crore in the
previous fiscal.
Shopper’s Stop Ltd. Partners The Nuance Group AG to set up a Joint Venture for Indian
Airport Retail
Date: February 22, 2007
Source: Company Website
Indian retailing pioneer Shopper’s Stop Ltd. and leading international airport retailer, The
Nuance Group AG, addressed a press conference on Thursday announcing a Joint Venture
between the two for the purpose of entering the Duty Free retail market at Indian airports.
The equally owned Joint Venture, named as Nuance Group (India) Pvt. Ltd., is the result of a
Memorandum of Understanding (MoU) signed between Shopper’s Stop Ltd. and The Nuance
Group AG in June last year and shareholders agreement executed recently.
The press conference held in Mumbai was hosted by the representatives from both the
companies, who jointly stated their vision and plans for Nuance Group (India) Pvt. Ltd. and
the future of Duty Free airport retailing in India.
While the airport retailing business in many countries like the U.S.A, U.K, Europe and even
some of the far eastern countries is well developed and has even matured, India has yet to
see the launch of airport retailing and climb the curve of growth in this format. With this
joint venture, Indian travelers can expect to see the launch of international brands and
formats at Indian airports changing the air travel experience and offering various options to
passengers in the dwell time at the airport
India is currently one of the most promising markets as far as development in airports and its
marketing is concerned. This process is further being accelerated by the upcoming
privatisation of several major airports as well as by the fast expansion of various airline
companies in the country.
The Nuance Group AG is the largest player in the global airport retailing space with decades
of experience and operations spanning five continents. The Nuance Group AG follows a
portfolio of five different kinds of retail services namely, tax + Duty Free shops, specialist
stores, brand stores, food service and in-flight services. Its quality services and product
offerings to the travelling consumer has earned the group a number of prominent awards such
as the 2007 Raven Fox Global Travel Retail Awards for “Travel Retailer of the Year” and the
2006 Frontier Awards for “Best Airport Retailer of the Year.”
Speaking on the myriads of opportunities in the Indian airport retailing market, Mr. Roberto
Graziani, President & CEO, The Nuance Group AG said, “India has emerged as a significant
player in global business and economy in the last decade. The rapid economic boom has also
had its effect on Indian travel, with an upswing in air services, increasing number of Indians
travelling by air and foreign arrivals to destination India. Being the largest airport retailer in
the global market, it was only natural for us to define India as one of our key strategic
expansion areas.”
Shopper’s Stop Ltd. has been a pioneer in the Indian organised retail space, and over the last
15 years, has built strong competence in department stores, operating 20 stores all over
India, which carry a mix of both National and International brands.
Since inception, Shopper’s Stop Ltd has brought many firsts into India and has been
instrumental in changing the Indian retail landscape. Shopper’s Stop Ltd has been credited
with starting the retail revolution with the launch of it’s first department store as early as
1991.Now with the growing demand of air travel, Shopper’s Stop Ltd has entered into the
joint venture with The Nuance Group AG to highlight the need for airports gearing up to the
requirements of air travelers and providing the much desired retail solutions at the Indian
airports.
Explaining the company’s foray into the airport retailing industry, Mr. B S Nagesh, Customer
Care Associate and Managing Director, Shopper’s Stop Ltd., said, “We believe, with this
partnership, we will extend our unique shopping experience to the airports and touch the
lives of millions of travelers. This will also help us create a larger footprint across the
country.” Nuance Group (India) Pvt. Ltd. has been awarded the retail concession for the
Greenfield Bangalore International Airport.
8. Analyst View
Shopper's Stop Ltd. is a recognized name in Indian retail circuit. The Group's principal
activities are to provide range of branded and own label apparel, footwear, perfumes,
cosmetics, jewellery, leather products and accessories, home products, books, music and toys
through retail formats. It operates through 20 stores located in the cities of Mumbai, Delhi,
Kolkata, Chennai, Bangalore, Hyderabad, Pune, Jaipur and Gurgaon.
Strategically, the Company is focusing on increasing its geographical spread to 22 cities from
10 through 39 stores by the end March 2008. It is also working to control its inventory. For
this, Shopper’s Stop has established a separate department, known as Loss Prevention, that
oversights shrinkage on regular basis. The Company is also working to attract talent pool from
educational institutes and other industries. To make a better team, it is providing training to
its associates. Moreover, the Company is credited with the initiation of first retail loyalty
program called “First Citizen”.
On the financial front, the Company is very good as its gross retail turnover has increased by
34% to Rs. 6,775 Million (including Consignment merchandise and others) in the fiscal year end
March 2006. In 2006, the Company’s Men’s, Ladies, Children and Non-apparels sales were
35.5%, 18.8%, 6.7%, and 39% of the total sales. The net income of the Company amounted to
Rss 271 Million in 2006, a rise of 42% over last year.
From the investment point of view, current ratio of Shopper's Stop Limited at 3 was high as
compared to the industry standard in the fiscal year end March 2006. This indicates that the
Company has enough of short-term assets to repay its short-term liabilities. Over the period
of last three years (2004-2006), its current ratio has shown increasing trends. So the Company
is advisable for short-term investment. However, for the long run, its returns on net worth
and return on invested capital have decreased in the fiscal year end March 2006 than 2005.
Even during the period spanning from 2004 to 2006, return on net worth (15.4%, 22.0%, 14.9%
in 2004, 2005, and 2006 respectively) and return on invested capital (12.4%, 14.2%, 11.3% in
2004, 2005, and 2006 respectively) have shown fluctuating trends. So an investor can consider
this Company for the long-term investment but its business cycles are very uncertain.