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Pantaloons Retail India Ltd. is one of India’s largest organized modern-format retailers

promoted by Mr. Kishore Biyani. From the beginning in 1987, PRIL has today evolved as

one of the leading manufacturer-retailer and are among the pioneers in setting up a nation-

wide chain of large format stores in India. PRIL is entrepreneur driven, professionally

managed focused on meeting the customer requirements for a large component of their spend

across fashion, food, general merchandise, home in both value and lifestyle segments.

The company’s business has grown from one store in Kolkota in 1997, occupying an area of

8,000 Sq. ft to 72 stores, apart from our 22 factory outlets located in multiple cities

occupying an aggregate area of 21, 07,608 Sq. ft. the company focuses on the Lifestyle

segment through 14 Pantaloon stores, 3 Central Malls, 2 aLL stores, 2 Fashion Station and 1

MeLa store. In the Value segment, PRIL caters to the masses through 21 Big Bazaar and 30

Food Bazaar outlets.

The company retails a range of branded and Private Label apparel, footwear, perfumes,

cosmetics, jewellery, leather products and accessories, home products, books, music and toys

in our stores. They also retail household items, consumer durables, home furnishings, apart

from food and personal care products. This is complemented by cafes, food stalls,

entertainment, personal care and various beauty related services. Promotions and events are

an integral part of the service offering to customers, which helps create a unique shopping

experience.

The exclusive formats include;

Pantaloons : Lifestyle products under Private Labels and third party brands

Central: Seamless mall providing the customer with a wide range of lifestyle product

across multiple national and international brands

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Big Bazaar: Value retailing with a range of products from apparel, toys, accessories,

consumer durables to household products and furnishing

Food Bazaar: Food and personal care products including dry groceries and FMCG

Products

Competitive Strengths

The following are the key strengths of PRIL:

Brand Equity and early mover advantage

PRIL is of India’s leading retailers with presence across multiple formats and stores across

large and medium cities across India. The Company successfully introduced the hypermarket

format through Big Bazaar, introduced the concept of seamless malls through Central,

launched Fashion Station to offer fashion apparel and accessories to mass market buyers in a

theme based style, opened aLL an exclusive lifestyle store for plus size people and continue

to invest in new concepts and formats to capture a greater share of the consumer wallet,

either directly and through our strategic investments.

Entrepreneur led, professionally managed by an experienced team

PRIL has an experienced professional management team led by our Promoter Mr. Kishore

Biyani, who is one of the leading entrepreneurs in the retail sector in the country and has

received various awards over the years, with the recent one being the Retail Face of the Year,

2005 (Images Retail Awards 2005).

The management team is complemented by a committed work force. The Human Resources

policies aim to create an engaged and motivated work force, which is essential for success in

any service oriented industry

Vast range of lifestyle and value retail products and services

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kitchen products, dry and fresh groceries, consumer durables and non durables with over

2,70,000 SKUs, which are complemented by our services offerings. Presence in both

Lifestyle and Value retailing enables us the organization to cater to a large segment of the

population. The company offers the customers a variety of national and international brands

as well as our Private Label brands under one roof.

Strong distribution and logistics network and supply chain

PRIL has created a strong distribution and logistics network, with its 13 Distribution Centres

covering 2,60,000 Sq. ft, handling over 1,00,000 SKUs, and working 24 hours a day and 7

days a week.

Large base of loyal customers

PRIL had 4, 22, 80,682 customer entries in our stores in the year ended June 30, 2005. The

emotional connect that PRIL has been able to create with its customers through their service

offering and special promotions has helped us convert many of them into loyal customers.

The company had over 2,19,989 members of the loyalty programme ‘Green card’ in its

format Pantaloon as on August 31, 2005. The Green Card programme contributed to about

31% of our sales of Pantaloons in FY 2005.

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PRIL is one of India’s major retailers with presence in following two segments:

1. Lifestyle Retailing - Pantaloons, Central, Fashion Station, aLL,MeLa

2. Value retailing - Big Bazaar, Food Bazaar

The entire operations can be summarized in the following diagram;

Pantaloons Stores

Sr. no City Location Area( Sq. ft)

1 Kolkata Gariahat 16,000

2 Hyderabad Begumpeth 16,000 3 Hyderabad Himayat Nagar 9,000 4 Chennai Spencer Plaza 22,000 5 Ahmedabad AhmedabadL 27,500 6 Kolkata Camac street 41,000 7 Kanpur Kanpur 30,000 8 Pune Inox 8,000 9 Mumbai Phoenix ,Lower Parel 50,000 10 Gurgaon Sahara Mall 17,000 11 Mumbai Center One,Vashi 22,000 12 Baroda Inox 20,000 13 Ahmedabad 10 Acre, Kankaria 20,000 14 Bangalore Sigma Mall 20,000 15 Indore Treasure Island 11 NA 16 Delhi Rajouri Garden NA17 Delhi Shahadra NA18 Mangalore Bharat Mall NA

19 MumbaiShri Vallabh Shopping Center, Borivli

NA

20 Mumbai R Mall, Mulund NA21 Rajkot Bharath Iskcon Mall NA22 Secundarabad Hazratganj, Lucknow NA

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the disguised footfalls. The corresponding conversion rate is 10-12%.

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Target Audience at High Street Phoenix

A survey undertaken at High Street High Street Phoenix reveals some interesting

characteristics about the nature of shoppers who frequent High Street Phoenix.

High Street Phoenix is popular for its shopping arcade with its stores in clothing, fashion

accessories, home décor and the like- traditionally considered to be a female domain. At High

Street Phoenix however, male shoppers outnumber female shoppers, what with the food and

entertainment zones tingling their tastes and taste buds.

The shoppers are primarily those who have the money and enjoy living it up. They fall in the

age bracket of 18 to 35, with a huge following in students and new wage earners with well-

paying jobs. They are the free-spirited souls, mostly unmarried, who frequent the place

whenever they find the time or need a break or just want to hang out.

The most popular reason for their affinity to High Street Phoenix is the fact that most of their

family and friends they want to spend time with and enjoy with, endorse it. Being a family

get- away and a popular hang out among the GenX, catering to a wide range of tastes,

preferences and pockets makes it very easily a popular choice for a day out or an evening out.

The average individual spending at High Street Phoenix ranges anywhere between Rs.500

and Rs. 2,000 notching a much higher figure for family spendings. A proportionately large

number of shoppers travel over 10 km to visit High Street Phoenix, their favorite mode of

transport being their private vehicle.

The typical shopper at High Street Phoenix falls in the Socio Economic Class A & B (SEC A

and B) who has a pocket and a mind of his own.

Target market and Positioning of Pantaloons

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sections at each of its locations. Its core offering is branded merchandise, retailing

international, national and regional brands as well as private and proprietary labels.

Today, a leader in Fashion...Pantaloons promises Fresh Fashion for the entire family as well

as the young and the young-at-heart. The belief is that they will be the key drivers of fashion.

Thus it is a store focusing on providing a value for money proposition as it provides quality

fashion products at an affordable price as compared to the competitors.

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a) Store location

The location of a retail store occupies an important place in retail strategy. It not only

conveys the image of the store, but also influences the merchandise mix and the interior

layout of the store. While the merchandise mix can be changed and prices can be adjusted, it

is difficult to change the decision on store location.

Factorial analysis.

Traffic

The traffic – pedestrian as well as vehicular – that passes the site is an important determinant

of the potential sales that can be generated from a store.

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(in terms of vehicles as well as pedestrians). The drawing power, that is, the ability to pull the

customer is also on the higher side. As such pantaloons can cater to the shopping needs of a

large population.

Accessibility of the market

Accessibility of a market is defined in terms of the availability of public transport and

road/local trains connections to the markets. It also takes into the frequency of the

corresponding bus/train services and connectivity to the different parts of the city.

Lower parel is much in the center of the town and the central and western suburbs

Concerning phoenix mall, several railway stations like Lower Parel, Parel and Mahalaxmi are

closely located.. Further the easy availability of transport facilitates makes the location really

accessible for shopping.

Visibility

Pantaloons is situated very close to the main road. Pantaloons being a three floored building

has great visibility. To enhance the visibility pantaloons has put its sign board on the top of

the building.

Total number of stores and the type of stores that exist in the area

HSP encompasses stores like Lifestyle, Trent, Adidas….which directly compete with

Pantaloons. This is really disadvantageous for Pantaloons. On the contrary HSP also caters to

the shopping needs of a large number of customers thereby providing a great advantage to the

shops located in its compound,

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The availability of basic amenities such as

washrooms, drinking water, ample parking space (a

factor slated to be gaining utmost importance

recently) etc. plays an important role for attracting

customers. One of the newest things to come to

HSP is a multi-level parking lot, which is slated to

be the first of its kind in India. As of now it may at

least take another year to finish. Thus it is clear that the availability of the requisite facilities

at HSP provides a distinct advantage to the customers of Pantaloons.

Product Mix Offered

The kind of product mix to be offered by the retailer is another important consideration. As

mentioned earlier the main product line of Pantaloons is men’s and women’s clothing and

other accessories comprising a vigilant mix of private as well as other labels. The shopping

ambience of HSP as well as that of Pantaloons reiterates the advantages of the location.

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Since Pantaloons provides products to a potentially large number of customers at affordable

prices, it falls in the High Turnover - Low Margin Category.

c) Layout

The store directory

Ground Level

Ladies Formal

Ladies Denim

Cosmetics and Fragrances

Fine Jewellery

Blue Sky (Sunglasses and Watches)

Fashion Accessories

Customer Service Desk

First level

Spring (Designer wear for men and women)Ladies Formal

Ladies Ethnic

Night ware and Lingerie

Kids Wear

Infant Necessities

Toys

Footwear

Ladies Wash Room

Drinking Water

Second Level

Men’s Occasion’s Wear

Men’s Formal

Men’s Ethnic

Denim Wear

Men’s Casuals

Active Wear and Sporting Goods

Teen Boys

Men’s Washroom

Drinking Water

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represents the competitor Lifestyle. Both the stores are linked by a passage with other stores

on the either side. These include Weekender, Reebok, Nike etc. This acts as a big hindrance

for Pantaloons as several customers enter the store from one end and leave from one end and

leave from another. Consequently the footfalls in the store are disguised.

Layout of Pantaloons Store

(Ground floor)

Designer Brands (Clothing)

Cash Counter

Jewelry Section

Office

Ladies formals

Trial

Trial room, toilets, drinking water

Perfumes and cosmetics

Ladies Denim

Cosmetics

(Lakme, loreal)

Perfumes

And

Cosmetics

Customer Service Desk

Baggage Counter

Main Entrance

Stairs

Bags, Watches Sunglasses

Nokia

Alteration DeskLifts

Mall Entrance

Trial Staff entry or Stocks

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CHANEL perfumes and cosmetics department.

Being a department store, Pantaloons exhibits an arrangement of merchandise in a freeform

layout. Such a layout allows free movement and also encourages people to browse and shop

with convenience.

The floor space is allocated on the basis of the contribution of a particular department to

business (as stated by Mr. Anwar Ali Sheikh, ASM). As such, the Men’s department has

been assigned an entire floor. The total area of the entire store is approximately 50000sq.ft.

However the most disappointing aspect about the layout was the presence of Toilets, Trial

rooms and drinking water at adjacent places. This format was exhibited by all the three floors

of the store.

The layout of the store is modified on a regular basis by shifting the fixtures and display of

the merchandise so that the customers develop a feel of novelty in the store.

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1) Exterior Store Design

The location of the building is

very prominient. It is very

much closer to the main road. It

has a modern look which is

further enhanced by the silver

finish as well as the green color

appropriately resembling the

brand.

The name Pantaloons Urbania

at the top of the building further

enhances the store’s visibility.

The clothes and accessories

available in the store are nicely

put up at the windows of the

building. At night the building

is brightly lit up. The focus is

largely on the name plate at the

top. The entrance has an automatic door closing system. There is always someone to greet the

customers entering the shop. Towards the immediate right of the entrance is the baggage

counter. Also a wheel chair is kept for the disabled. As one proceeds, there is a customer

grievances desk and a counter for green card members. A couch has also been placed near the

desk, which is really comforting in case of a queue.

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Flooring and Ceiling

The interior layout generates good brand associations through appropriate color

combinations. The white color of the walls and floor coupled with the green color of the

visual merchandise helps in portraying the brand effectively.

Graphics and Sign gages

Exactly opposite to the entrance gate of the store is a store directory mentioning the various

sections/departments of the entire store (Ground, First and Second floors). On the right hand

side wall is a sign gage (exactly opposite to the customer grievances desk) indicating the

promotional schemes (currently Sona Heera Utsav). However the directional signs are not

quiet visible.

Atmospherics:

Lighting

Good lighting in a store involves more than illuminating space. Lighting is used to highlight

merchandise, sculpt face and capture a mood feeling that enhances the store image. White

lighting has been majorly used in the store so that the customers can identify the requisite

colors of the apparels.

Sound type and density

Instrumental music is played over loud music in the store making the shopping

environmental more serence and calm

Odour type and density

Like sound, odour too has a negative or positive impact on the atmosphere of the store. The

strength (density) of the odour is also important. This is because, even if the odour is right

but too strong or intense, the ultimate impact generated by it is negative. Considering

pantaloons, perfumes or room fresheners are aprayed through the air conditioners.

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Merchandise Type and Density

One can come across campaign graphics in the store with merchandise places near them.

Mannequins are displayed with accessories to generate impulse purchases. Spot lights are

also focused on the visual merchandise so as to gain the attention of the customers.

Pantaloon focuses on the latest fashion apparels. No rack is kept empty as it may create a

negative impression in the minds of the customers. Eg. Concerning the T shirts department

(especially in case of UMM Brand), one t shirt of a particular color or design is displayed,

while next to it, on a shelf the same T shirt but with different colors is displayed.

Fixtures

Detachable fixtures with smooth edges are maintained in the store especially in the kids

segment.

Packaging

The Products purchased by the Customers are packed in green colored Reacyclable Plastic

Bags. The bag is sealed with a tape bearing a statement “Thank you for shopping ant

Pantaloons” on it.

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Pantaloons has applied the concept of category management in its day-to-day merchandising

function as against the traditional brand management merchandising practice followed by

most retailers. Category managers look at sales and margins of each brand in a category. The

whole idea of category management is to create products across length and breadth of a

category at different price points, fabrics, design, shape, seasons, colour and size.

Functions under category management can be broken into:

Merchandising

The Category manager develop a merchandising strategy for the category taking into

consideration customer profile, classification, resource structure, vendors, fashion trends,

items and price points. The category manager visit stores regularly to check assortments of

merchandise displays, stock levels and old season merchandise, consult with team leaders

and sales people on problems and suggestions. Although no concrete information was

provided with respect to the ways of forecasting the sales and inventory planning, it was

highlighted that a buffer stock of approximately 10-12% of the total stock is maintained in

the store.

Sourcing / Purchasing

The category manager controls quantities to be purchased as per the sales forecast. The

purchasing is done based on a plan made for the season and re-orders been placed based on

sales and stock levels. The Category Manager reviews the actual sales versus planned sales

and source the material based on feedback from storefront.

Logistics

Category manager ensure that goods are dispatched in right quantities and at right time to

reach stores with sufficient time in hand to promptly cater to customer demands.

Promotions

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manager identifies slow movers and also disposal plan for the same.

Categories and Private labels

Private Labels

Serial No Private Label Category

1 Pantaloon Trousers Mens Wear

2 Bare Jeans Jeans, Knitwear, gabardine, jackets, and

other accessories.

3 John Miller Shirts

4 Shrishti Ladies wear

5 Scotsville Winter wear, sweaters, cardigans and

blazers

6 Scotsville Ladies western wear

7 Annabelle Ladies western wear

8 Ajile Sports wear

9 Mixnmatch Buying separates and combining

10 Honey Western wear brand for young girls

11 Akkritti Men’s ethnic wear

12 Lombard Classic English formal wear

13 Trishaa Stitching salwar kammez

14 UMM Trendy sports and utility wear

15 Ghagroos Mens Ethnic wear

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Smart Casuals: Easies, Indian Terrain, Dockers, Shapes, Blackberry

Jeans wear: Pepe, Lee, and Wrangler.

Sportswear: Nike, Adidas, Reebok, Spalding, Puma, Speedo

Young Fashion: Friedwater, Spykar, Moral Fibre

Ladies Ethnic Wear: Biba, W

The Springboard collection: ladies Designer wear

Kids and Infants: Bare Kids, Disney apparels, Popeye, No Rules, Chalk, Urban Spool,

Umbrella (All private labels)

An intensive Private Label offering requires a proactive and innovative design team. To

fulfill this objective a Design Studio was created at Mumbai. Pantaloons has a design team

comprising of 35 members, all qualified graduates form National Institute of Fashion

Technology (NIFT), National Institute of Design (NID), Nottingham Trent University,UK

(NTU) and other institutes. The team has a combination of senior designers and new recruits

providing a mix of experience and youth. In addition to conceptualizing designs for apparels,

the team also designs and develops logos, labels and tags. Presence of a dedicated design

team has resulted in faster introduction of new Private Labels as well as ensures that all

existing Private Labels undergo frequent refurbishment.

Manufacturing, Vendor management and SCM

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integrated backwards into the in-house manufacture of part of the apparel products sold from

their shelves. Through their manufacturing capabilities they have the ability to control

garments from the initial stages in the value chain, to tide over unexpected demand and cope

with the unpredictable world of fast changing fashion trends. The resulting seamless

integration and relative independence from intermediaries represents a competitive advantage

in terms of value, cost and convenience.

Pantaloons has a trouser manufacturing plant at Tarapur .The trouser manufacturing plant is

equipped with state-of art, fully automatic machines for fusing, surging, bottom hemming

and welt pocket- making operations. The factory has a capacity to manufacture 3,000 trouser

pieces a day. It has 300 machines and is operated by 340 workers.

Availability of products at the right time and at affordable cost is of utmost importance in

retail business. Supply Chain management ensures this. The diverse requirements of different

retail formats in which Pantaloons Retail India Ltd. operates requires a model which is

flexible enough to meet the diverse requirement of various formats; incase of Pantaloons- the

time to market is of paramount importance. Keeping this in mind, the company has created

it’s our own supply chain and logistics model. The Supply Chain function involves vendor

management, quality assurance and transportation.

Vendor management assumes critical importance in retail business where one has to deal

with multiple products. Pantaloons has in place a robust vendor management system.

Vendors are identified all over the country and strategic relationships are developed. A

transparent vendor rating system rates each vendor across a variety of parameters. Regular

interaction and rating system ensures that the vendor remain in sync with our Company’s

goals and targets. Improvement in communication with vendor and vendor development

initiatives like standardization of norms for size and fits, and implementation of a vendor

rationalization program enables the company to increase the number of “A” rated vendors by

over 80 %. The Supply chain department has been awarded the ISO 9001:2000 certificate by

Det Norske Veritas.

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fabrics. Some of the fabrics used in the manufacturing process are imported from countries

likes Turkey, Dubai. Sourcing of these materials also takes place from local traders in India.

They have suppliers of fabrics located in cities such as Ahmedabad, Mumbai, Bhilwara from

whom sourcing of the fabrics takes place as and when required depending upon the

production plan.

The company sources various components that go into apparel e.g. fabrics, manufacturing,

accessorization from vendors in India and abroad. The final inspection happens under our

strict observation. Pantaloons identifies and develops exclusive vendors and mould them into

entities that will help in meeting specific company requirements. They act as a guide to these

manufacturers and are involved from the inception stage right from suggesting the

machinery, providing all technical inputs to transferring manufacturing expertise to these

vendors. This allows adding flexibility and scalability to their overall sourcing.

The company uses its manufacturing strengths to focus on enhancing product knowledge.

The division works closely with the design team and the research and development team to

understand trends, develop products, value engineer and finally create season wise collection

that cater to regional tastes.

The company has one central warehouse and 12 regional warehouses. These warehouses are

located in Pune, Delhi, Ghaziabad, Nasik, Ahmedabad, Bangalore, Hyderabad, Gurgaon,

Mumbai, Nagpur and Kolkata.

In case of lifestyle retailing, the entire apparel stock is generally delivered to the central

warehouse. The central warehouse then services individual stores.

While they outsource intercity transport of goods to third parties, intra city movement form

warehouse to the stores is handled by their own fleet of vehicles. For lifestyle retail formats,

they use the services of logistic solution providers in order to deliver products on time to the

stores.

Warehouse operations have been streamlined through the standardization of racking system,

scientific layouts and implementation of automatic replenishment system. The quality

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measures. Quality hubs have been established at zonal level with a view to proactively

prevent quality defects.

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Pantaloons typically falls in the High Assortment – High Variety quadrant. Mr. Anwar Ali

Sheikh (ASM – Pantaloons, Phoenix) states that although the assortment and variety in each

of the categories is high, depth is emphasized upon in case of core merchandise categories

such as men’s formal wear, men’s casuals and sportswear. Conversely, the typical fashion

apparels and accessories are dominant on the Width front.

High assortmentLow assortment

High Variety

Low Variety

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An organization my charge a high price for the high level of service it provides to the

customers or it may charge a low price for a low quality of service provided by the same.

High service – Low Price and Low Service – High Price aspects are not seen as they

epitomize competitive failure. Concerning Pantaloons, the service is of a very high quality.

The prices may be considered as medium to high depending upon the kind of product one

wants to avail of. However as compared to the competitors, the company definitely has a

distinct advantage in terms of pricing.

A myriad of services are offered by pantaloons, some of them are discussed below:

Payment Facilities

Every shopper is allowed to make payments for their purchases by Credit Cards, debit cards

as well as cash. All Major Credit Cards and Debit Cards are accepted in the store.

Gift Packaging

At the entrance of the store, near the Customer Service desk, there is a gift wrapping counter

which provides the service of gift packing

Alterations and home delivery

If any alterations are to be made in the clothes purchased, the same is carried out at

absolutely no cost. If the customer is a green card holder, the apparels are delivered at his/her

place subject to certain conditions.

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In a business where individuals comprise the principal asset, the structure of the people

pyramid influences the quality of knowledge captured, the speed with which decisions are

made and the morale of the organization. Human Resource is one of the critical support

functions and forms another key element of the corporate backbone. Pantaloons had 7,379

employees as on September 30, 2005. It is a very young and energetic organization with

average employee age being 30 years.

The company believes that service is the core philosophy and people are its most important

resources. An attempt has always been to create an environment where the employees feel

pride of being called ‘Pantaloonians’.

Organisation Structure

Pantaloons follows an inverse pyramid

structure; as a result decisions are taken

closest to the point of customer action. Sales

executive are encoureaged to think customer

first. They are empowered to run their

respective departments like ‘small business

owners’.

Recruitment and Selection

Recruitment takes place through any of the following option or combination of these options:

• In-house data bank

• Walk-in advertisement

• Internal Referrals

The selection processes are defined to evaluate the skill sets required for each job and also to

evaluate the fitment to our various formats of retailing.

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Training

The company places special emphasis on the training of our employees to enable them to

develop their skills to meet changing retail technology and to provide efficient and effective

customer services.

The Company has a well defined Learning & Development (L &D) team that is responsible

for training at all the levels across the country. The L & D team focuses on primary and

secondary research into various aspects of retail and assessment of training needs across

Knowledge, Skills & Attitude areas at all levels.

'Prarambh' for Induction and 'Guru-School' for Trainer Development are a couple of

programs created and disseminated by the L & D Team this year.

The company is in the process of establishing a training centre at each zone that will be

equipped with extensive and up-to-date facilities and which offers relevant training

programmes.

Retention Strategy

Pantaloons strives to foster a feeling of well-being in its employees through care and respect.

They have several structured processes including employee mentoring and grievance

management programmes which are intended to facilitate a friendly and cohesive

organization culture. Off-site activities are encouraged to improve inter-personal relationship.

We also acknowledge the efforts exerted by the employees by

Organizing an annual celebration called ‘Pantaloon Day’ where they recognize employees

who have shown exceptional talent, sincerity and dedication. Pantaloons have implemented

an employee suggestion programme called ‘Prerna’ wherein the employee can give their

suggestions. Every quarter the best suggestion received per zone per format is awarded prize

called “Golden Cap”.

Conclusion and recommendationsPantaloons is the best bet in retail. The store has been well maintained in accordance with the

latest demands of the consumers.

However it still needs to focus on several parameters which are posing hindrances towards its

growth so that the store can retain its current numero uno position in the lifestyle segment.

The organization must strive for the development of new formats to facilitate a better

shopping environment for its customers. It can be undoubtedly stated the company has well

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environment so that it can sustain the competitive advantage.