analysis of an indian company in retail sector

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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 retailchains.

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 Vs - 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 exerciseRated 5

th

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%

Ranked 2nd

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 StoresDiscount 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 brandsHomeStop 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 2009Most 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 newlogo 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 MallJaipur - 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 - AndheriMumbai - 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: ProductWomen wear

Ishvarah

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.

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analysis of an indian company in retail sector

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