What is Shoppers Stop

Shoppers Stop Ltd. (Shoppers Stop) is a departmental store. It falls in the category of a MBO. The company offers branded and private label, products including apparel, footwear, perfumes, cosmetics, jewellery, leather products, accessories, home products, books, music and toys. Shoppers Stop, HomeStop, Crossword, Mothercare, HyperCITY, GourmetClTY, Nuance and Timezone. It operates about 41 Shoppers Stop stores, 22 Mothercare stores, 51 Crossword stores and 4 HomeStop stores. The company principally operates in India and is headquartered at Mumbai, India.

History and Evolution

1991 1992 1993 1994 1995 1997 1998 Opened their third store in Hyderabad.

Opened their first store in Andheri, selling only Menswear Womens wear was introduced.

Launched their credit card for loyalty Opened members. Added their second Childrens & store in Shoppers Non Apparel Bangalore. Stop sections. incorporate Loyalty program d as a body titled first citizen corporate. was launched.

History and Evolution

1999 2000 2001 2002 2003 2004 2005

Opened their fourth & fifth stores in Jaipur Opened & Delhi. their sixth & Implemented seventh JDA Retail ERP. stores at Chennai & Opened Chembur. their 8th & 9th stores Acquired in Pune & Crossword Bandra. Indias leading retail book chain.

Opened their 10th store in Kandivali (Mumbai).

Opened their 14th, 15th & 16th store in Opened Mumbai, their 11th, 12th & 13th storeKolkata & in Mumbai, Bangalore. Gurgaon & Kolkata.

Opened their 17th, 18th, 19th & 20th store. Launched MAC & Homestop their home store.

History and Evolution

2006 2007 2008 2009 2010 2011 2012 Opened 21st & 22nd stores. Launched Mothercare in Signed a India. Bought 50:50 joint 45% of Timezone venture India. with Nuance group for Airport retailing. Signed an MOU with Home retail group of UK for E-tailing.

Awarded emerging market retailer of the year by the World Pioneered Retail Congress. Mascot licensing (Vodafone for their popular mascot Zoozoo).

Expanded footprints by adding new cities like Bhopal, Amritsar & Aurangabad .Upped its stake in Hypercity Retail (India) Limited to 51%.

Planning to expand to 25 cities.

Now they have expanded to 41 stores in 18 cities.

Corporate Information
It was incorporated on June 16,1997 as a private limited company. In December 2000, it was converted into a public limited company. It is promoted by K. Raheja group. Private Labels at Shoppers Stop are Austin Reed, Mario Zegnoti, Life, Stop, Kashish, Haute Curry, I jeanswear, Insense, Eliza Donatein

Organizational Structure
Name
Mr. Chandru L. Raheja Mr. Ravi C. Raheja & Mr. Neel C. Raheja

Job Title
Chairman and Non-Executive Director Non-Executive Director

Board
Non Executive Board Non Executive Board

Mr. B. S. Nagesh

Customer Care Associate, Vice Chairman and Non-Executive Director

Independent and Non-Executive Director

Executive Board

Mr. Gulu L. Mirchandani

Non Executive Board

Mr. Shahzaad Dalal

Prof. Nitin J. Sanghavi Mr. Deepak Ghaisas

Independent and Non-Executive Director

Independent and Non-Executive Director Independent and Non-Executive Director

Non Executive Board

Non Executive Board Non Executive Board

Product Mix
Fashion & Home Retailing: Shoppers Stop Currently has 41 stores with a presence in 19 cities HomeStop Stores (Home Dcor) Currently has 5 stores with a presence in 4 cities

Specialty Retailing: Mothercare (Maternity, Infant Care) The exclusive franchise agreement for departmental stores with Mothercare Plc UK. Currently there are 32 stores of Mothercare (including 7 standalone stores) with a presence in 11 cities Crossword (Book stores) Currently it has 76 stores M.A.C (Cosmetics) The retail agreement with Estee Lauder to open M.A.C stores. Currently has 20 stores with a presence in Mumbai, Bengaluru, Delhi, Amritsar, Chennai, Hyderabad, Pune, Kolkata and Ludhiana Clinique (Cosmetics) Currently has 10 stores ( including 2 standalone) in Mumbai, Bengaluru, Delhi, Kolkata and Hyderabad Estee Lauder - Currently has 5 stores (including 2 shop-in-shops), one each in Bengaluru, Mumbai and Delhi
Mixed Retailing: HyperCity Currently has 10 stores, one store each in Amritsar, Bhopal, Jaipur, Navi Mumbai and Hyderabad and 2 stores each in Mumbai and Bengaluru, spread over an area of 10.7 lakh sq ft. Other Initiatives: Airport Retailing Currently has 1 store in Hyderabad domestic airport and 2 stores in Bengaluru domestic airport. 4 duty free stores are run by the JV Company in the international airport at Bengaluru TimeZone Entertainment Currently has 14 doors.

Division

Apparel Men

Fragrance & Beauty

Perfumes

Home & Travel Home Travel Kitchen Bed Bath Luggage Laptop Bag Travel Accessories

Apparel Sales & Discount Gift Voucher

Men Women Home Kids Unisex Members Watches Pens Handbag Jewelry

Departments

Women Kids Formals Casuals Accessories

Skincare Cosmetics
Men Women Unisex

Category

Formals Casuals Accessories Boys Girls Toys

Oily Skin Normal Skin Dry Skin For Eyes For Nails For Face

Half Sleeve Full Sleeve Styles/Fashion Sub-Category Half Sleeve Full Sleeve Half Sleeve Full Sleeve

Polo T-Shirt 2 Button Cufflink

Short Kurti Long Kurti Jeans Shorts T-Shirt
Different Size Different Color Price Range

Lee Wrangler Zodiac Brands

Biba Stop DIY

Options/SKUs

Different Size Different Color Price Range Different Size Different Color Price Range

Adidas Lee

Womens wear at Shoppers Stop

Women's Wear Formal Casual Ethnic Lingerie

Brands

Private Labels

Brands

Private Labels

Brands

Private Labels

Brands

Private Labels

Van Heusen

Austin Reed

Mango

Latin Quaters

Stop

BIBA

Kashish

Triumph

Allen Solly

Eliza Donatein

Fcuk

Pepe Jeans

Life

Haute Curry

Lovable

Wills Lifestyle

Stop

Levis

I jeanswear

Isvarah

Stop

Enamor

Womens Wear Price Line

3000 2500 BIBA Kashish Van Heusen Austin Reed W 1500 Mango 2000 Tommy Hilfiger UCB Forever New

1000 Allen Solly Stop 500 0

Stop Life

Formal

Ethnic

Casual

Mens Wear at Shoppers Stop

Men's Wear

Formal

Casual

Ethnic

Brands

Private Labels

Brands

Private Labels

Brands

Private Labels

Arrow

Jack & Jones

Vettorio Fratini

Levis

Fcuk

Mario Zegnoti

Manyavar

Zodiac

Louis Philippe

Austin Reed

Esprit

Calvin Klein

I jeanswear

Van Heusen

Indian Terrain

Stop

Tommy Hilfiger

Spykar Jeans

Life

Mens wear Price Line

3500 3000

2500 Calvin Klein Tommy Hilfiger UCB

Arrow Van Heusen Austin Reed

2000 1500

Vettorio Fratini

1000
Allen Solly Stop 500 0 Formal Ethnic

Jack & Jones Life

Stop

Casual

Target Customers
Target Customers are Upper middle class and upper class. Customers profile age falls between the age group of 16 to 40 years. SHOPPERS STOP have segmented their respective markets in terms of Age and Sex (e.g. Clothing for Men, Women and Kids) Segmenting by Income and Expenditure patterns.
Shopper stop also Target Non Resident Indian as well as foreign Nationals.

Turnover
Highlights of Q4FY10 Gross Retail Turnover at Rs. 422.9 crs; jump of 20 % Net profit at Rs. 16.4 crs; increase of 197 % EBITDA at Rs. 27.1 crs, up, by 100% Like-to-like growth at 16%; compared to 3% degrowth last year. Shoppers Stop launched its first store in Punjab Amritsar and third store in Bengaluru; taking the total to 30 stores across India Launched 3 new Crossword stores

Turnover
Highlights of Q1FY11 Gross Retail Turnover at Rs.385.7 Crores; jump of 25% Net profit at Rs. 10 Crores; increase of 297 % Like-to-like sales growth at 21% EBIDTA at Rs. 25 Crores, up, by 65% Acquires 51% stake in HyperCity Retail (India) Ltd Adds 0.97 lakhs members to First Citizen club Total stores added this quarter: 4 Clinique store (SIS) during the quarter.

Year 2006-07 2007-08 2008-09 2009-10 2010-11 No. of stores 60 73 72 93 97 Income (Rs. In lakhs) 87406 116024 134428 150236 184165 Expenditures 79532 109522 129504 138885 168954 Profit After Tax 2620 697 6372 5023 7518

Financial Highlights

SWOT Analysis

Mission & Vision

Mission: To be a global retailer in India and maintain its No.1
position in the Indian market in the Department Store category.

Vision: Nothing but the best .

Values that help us in achieving our mission and vision: We will not take what is not ours. The obligation to dissent (against a viewpoint that is not acceptable). We will have an environment conducive to openness. We will believe in innovation. We will have an environment conducive to development. We will have the willingness to apologize and forgive. We will respect our customers' rights. We will create an environment of trust. We shall be fair. We will be socially responsible.

Objectives & Policy

Their main objective is to make their customers satisfied and then earn profit. To retail their existing customers & gain new customers. 65 % of their customers are their first citizen customers. Shoppers Stop is the only retailer from India to become a member of the prestigious Intercontinental Group of Departmental Stores (IGDS).

Status of Brand & Its Presence

It is a national brand. It provides leading international and national brands in clothing for men, women and kids, accessories, cosmetics, footwear and home furnishing. It has a wide presence in India. Shoppers Stop operates in the premium category in the smaller towns and, additionally, in the bridge-to-luxury segment in the more developed cities. The targeted consumers for these brands, are those with their higher disposable incomes. The stores of Shoppers Stop all located in almost every city and state of the country, which includes Gurgaon Kolkata, Pune, Jaipur, Hyderabad, Bangalore, Delhi and Mumbai.
Source: The Hindu Business Line, dated 14th May 2011

Future Expansion Plans

It will invest up to Rs. 400 crore to expand presence in India by opening new stores across formats in the next four years. Plans to expand presence to 25 cities from the current 19 cities in the next three years. Rs. 200 crore would be invested on about 25 new Shoppers Stop departmental stores in existing as well as new cities across India and the remaining would be invested on other formats. They might see a lot of foreign investment coming in in segments like home, electronics and hypermarket once the FDI conditions are clear. Source: Press Trust of India / Mumbai July 28, 2011, 11:54 IST

CSR Activities
CSR Areas
1. Children 2. Community Welfare 3. Healthcare 4. Senior Citizens

Main CSR Activities

1. Community Welfare 2. Healthcare 3. Senior Citizens

Blood Donation Drive Think Green: Planting of Neem Trees Foundation Day Celebration SKD Exchange Offer Recycle By Life Back To Earth

Competition in terms of Area

Competitors
Shoppers Stop

Space (Square Feet)

1.9 Million

No. of stores
104 1500 950 700

Gross Turnover
Rs.1570 crores Rs. 4000 crores

Net profit
Rs. 16.4 crore Rs. 141.54 crore

Pantaloon Retail 10 million sq. ft. Reliance Retail Aditya Birla Retail 4 million sq. ft. 2 million sq. ft.

Rs. 330 crores Rs. 18.22 crore Rs. 300 crores Rs. 17.7 crore

Pantaloon started its operations of retailing in 2001. Both Reliance and Aditya Birla started operations in 2006. Thus Shoppers Stop is considered to be a slow mover compared to competitors. Source: Business Standard, September 10, 2011

Competitors in terms of Retailing

Name Pantaloon Retail Shoppers Stop Trent Kewal Kiran REI Six Ten Provogue Brandhouse Koutons Retail Cantabil Retail Pantaloon (Differential Voting Rights) Last Price 288.50 386.40 1,134.15 836.80 27.10 31.40 16.05 21.70 26.75 190.45 Market Cap. (Rs. cr.) 6,445.65 3,176.65 2,779.61 1,031.36 398.64 359.08 86.03 66.30 43.68 0.00 Sales Turnover 4,097.43 1,712.00 716.71 236.62 716.50 565.39 737.45 535.55 186.43 Net Profit 76.67 75.18 43.04 46.23 29.04 33.41 20.12 -314.56 12.37 Total Assets 4,142.47 746.82 1,356.96 190.97 108.51 918.99 312.41 1,164.62 92.64 -

Abhishek Sinha