ANALYSIS OF AN INDIAN COMPANY IN RETAIL SECTOR

SHOPPERS STOP

Traditionally retailing in India can be traced to The emergence of the neighborhood ‘Kirana’ stores
catering to the convenience of the consumers. Era of government support for rural retail Indigenous
franchise model of store chains run by Khadi & Village Industries Commission Textiles sector with
companies like Bombay Dyeing, Raymond's, S Kumar's and Grasim first saw the emergence of retail
chains.
Later Titan successfully created an organized retailing concept and established a series of
showrooms for its premium watches The latter half of the 1990s saw a fresh wave of entrants with a
shift from Manufactures to Pure Retailers. For e.g. Food World, Subhiksha and Nilgiris in food and
FMCG; Planet M and Music World in music; Crossword and Fountainhead in books. Post 1995
onwards saw an emergence of shopping centers Emergence of hyper and super markets trying to
provide customer with 3 V’s - Value, Variety and Volume Expanding target consumer segment: The
Sachet revolution - example of reaching to the bottom of the pyramid. At year end of 2000 the size
of the Indian organized retail industry was estimated at Rs. 13,000 crore.

Retail Trend in India

Retailing in India is witnessing a huge revamping exercise
th
Rated 5 most attractive emerging retail market
Estimated to be US$ 200 billion, of which organized retailing makes up 3 percent or US$ 6.4 billion
Annual growth of department stores is estimated at 24%
nd
Ranked 2 in a Global Retail Development Index of 30 developing countries
Retailing formats in India
Malls
Specialty Stores
Departmental stores
Multi Brand Stores (MBO)
Hyper marts / Supermarkets
Convenient Stores
Discount Stores

Shoppers Stop: Introduction

The foundation of Shoppers' Stop was laid on October 27, 1991 by the K. Raheja group of companies
28 retail outlets across the country and is planning to spread its wings with futuristic expansion plans
to meet the challenges of the retail industry
With a Gross Retail Turnover of Rs. 8996 million, Shopper's Stop has become the highest benchmark
for the Indian Retail Industry.
Has progressed from a single brand shop to a Fashion & Lifestyle store for the families.
It Is the country's largest chain of Department Stores.
International and domestic brands across categories such as apparel, accessories, cosmetics, home &
kitchenware as also its own exclusive brands
HomeStop is the first-of-its-kind premium home concept store at Bengaluru, Mumbai and New
Delhi, offering a wide range of products.

Shoppers Stop: Accomplishments

Shoppers Stop Ltd has been awarded
“The Emerging Market Retailer of the Year Award“
World Retail Congress at Barcelona, on April 10, 2008
Shoppers Stop is listed on the BSE
The only retailer from India to become a member of the prestigious Intercontinental Group of
Departmental Stores (IGDS)
"Most admired Fashion Retail Destination of the Year“
Images Fashion Forum - Jan 2009
Most Admired Retailer of the Year (Customer Relations) – Shoppers Stop.
IRF 2009 - Sep 2009
"Best Visual Merchandising"
VMRD Retail Design Award – July 2009
"Retailer of the Year - Fashion & Lifestyle"
Asia Retail Congress - Feb 2009

Shoppers Stop: 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
Re-Positioning

EARLIER
 NOW

Re-Positioning
On April 24, 2008, one of India's oldest retail chains Shopper's Stop Ltd unveiled its new
logo as a part of its re-branding strategy.
In a bid to reposition itself as a 'bridge to luxury' store as opposed to its earlier image of a premium
retailer
Commenting on the change, B.S. Nagesh, Customer Care Associate and Managing Director,
Shopper's Stop, said, "Change is essential. Our consumers are changing, their preferences are
constantly evolving. They are getting younger. Shopper's Stop came up with several initiatives - it
planned to increase per store area from around 40,000-45,000 sq. feet to 75,000-85,000 sq. feet.

Shoppers Stop (Malad-InOrbit)

Store Size: 1,17,000 sq feet
Retail Presentation Area: 56% – 64% of total store size
Sales per square foot: Rs. 2,600/-
Gross margin per square foot: Rs. 340/-
No. of Employees: 480
Approximate Rentals: Rs. 75 per square foot
Investments (furniture, fixture and fittings): Rs. 2,800/- per square foot.
Average Ticket Size: Rs. 2,400
Conversion ratio: 32%
Private Labels:17% of Merchandise Mix and 21% of total sales
% of Sales contributed by Malad Store to overall sales: 13%
S.W.O.T Analysis
STRENGTH:
Oldest
Financial conditions
loyal customer base of over 782000* First citizen members * 2009 data
WEEKNESS:
Less number of outlets

S.W.O.T Analysis
OPPORTUNITY:
Changing taste of young generation
Preferred partners for foreign player
THREAT:
Competitors like Globus, Lifestyle, Westside.

Major Retailers
Shoppers Stop: Place
Shoppers Stop: Place
North
Delhi-Ansal Plaza
Ghaziabad - Indirapuram
Gurgaon - Metropolitian Mall
Jaipur - Malviya Nagar
Lucknow - Gomti Nagar
South
Bangalore - Bannerghatta Road
Banglore - Garuda Mall
Chennai - Chetpet
Hyderabad - Begumpet
East
Kolkata - Forum Mall
Kolkata - Salt Lake City
West
Mumbai - Andheri
Mumbai - Bandra
Mumbai - Chembur
Mumbai - Juhu
Mumbai - Kandivili
Mumbai - Malad
Mumbai - Mulund
Pune - Shivaji Nagar
Pune - Camp

Shoppers Stop: Product Mix

Shoppers Stop: Product
Men Apparel
Indian Terrain
Allen Solley
Dockers
Stop
Zodiac
• Park Avenue
Ven . Heusen
Mario Zegoti
Arrow
Austin Reed (London)
Louis Philippe
• Giovani
• Vettorio Fratini
Wills Lifestyle

Shoppers Stop: Product

Women wear
I’shvarah
Stop
Mix n Match
Haute Curry
Kashish
Sanaa
Biba
Mufti
United color of Benetton
Fem – French Collection

Use of CRM ERP SCM at shoppers stop

Shoppers stop is eyeing over 50 % sales from CRM initiatives this year. The company has also lined
up aggressive expansionary plans this year targeting small towns and cities. The use of new software
called “Business Solutions” which helps generate intelligent data from a customer base of 2,30,000.
ERP
Shoppers Stop was amongst the first few retailers to use barcodes and scanners and completely
computerise its operations. Its amongst the first few stores to have retail ERP. They are able to open
new stores and get information about merchandise and customer online which reduces the time
taken in quick decision.
SCM
Understanding the importance of distribution and logistics in ensuring that merchandise available on
the Shoppers Stop floor has led it to streamline its supply chain. These modules include vendor
management, purchase order management, purchase verification and inventory buildup, fixing of
price or store tags, dispatch of stock to the retail floor and forwarding of bills.