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NATIONAL INSTITUTE OF FASHION TECHNOLOGY

,
KOLKATA

ASSIGNMENT – I

SUBJECT
FASHION RETAIL MANAGEMENT
NAME OF THE ASSIGNMENT
Study a retail store with respect to its corporate history, organizational structure,
annual reports, target customers, store locations, store formats and product line.

TOPIC OF THE ASSIGNMENT
STUDY A RETAIL STORE- WESTSIDE

SUBMITTED BY:

Shreshtha Soni
Roll no: 10

Sakshi Prerna
Roll no: 13

Priyanka Suman
Roll no: 16

Noopur Singh
Roll no: 17

Dinesh Das
Roll no: 26

Infiniti Retail and Titan.  Tata’s retail chains are run by its subsidiaries like Trent Ltd. in 2009-10 was estimated at $67. taken together. Tata in the retail sector  The tata group operates some of India’s largest and fastest growing retail chains. Casa Décor. energy. Tanishq and the latest addition to this list is Taashi. Star Bazar. engineering material.4 billion (around Rs319. in terms of market capitalization and revenues. and jewelry to clothing and accessories. services. 534 crore). Westside.  The group has operations in more than 80 countries in various fields including: Communication and information technology.  These chains provide products ranging from electronic items.  The retail chains include: Croma. Landmark. . fresh food.  The total revenue of the Tata group. The Tata group was founded by Jamshedji Tata in 1868 and now is the largest private corporate group in India. consumer products and chemicals.

 Westside has 90 per cent of its merchandise as private label brands and witnessed a growth of nearly 28 per cent in the retail space. despite the downturn. Perfumes and Handbags. organized by the IMAGES Group.  With a variety of designs and styles. Cosmetics. Littlewoods was subsequently renamed as Westside  In a rapidly evolving retail scenario.  Turnover year ended 31. everything at Westside is exclusively designed and the merchandise ranges from stylized clothes. footwear and accessories for men.000-30. . lingerie. the company has 69 Westside stores measuring 15.  Westside was awarded the 'The Most Admired Private Label Fashion Retailer of the Year’ at the Images Fashion Awards 2010.2011 was 4303. Household Accessories. Well-designed interiors. prime locations and coffee shops enhance the customers’ shopping experience. and Gifts.71 lakhs. home accessories and furnishings. Footwear. artefacts. sprawling space. Currently.CORPORATE HISTORY  This story began circa 1998 when the Tata’s acquired little woods a London based retail chain. Kid’s wear.  Westside is ahead in profitability because 85% of its merchandise is in-house brands.  Westside is mostly popular because of a wide range of products which include Menswear.03. Westside has carved a niche for its brand of merchandise creating a loyal following. women and children to well-co-coordinated table linens. This acquisition was followed by the establishment of Trent ltd (A Tata enterprise that presently operates Westside). Women’s wear.000 square feet each across 28 cities.

Lycra Images Fashion Awards 2005  NDTV Profit Business Leadership Awards 2006 .  Italian kids wear brand Chicco will introduce parents to the safe and tested world of baby products.6% to Rs 542.  Between financial year ended 2008 and 2009-10.60 crore against Shopper’s Stop’s 30% growth to Rs 1. Simone N. Manish Gupta and Vivek Kumar. Priyadarshini Rao. Trent’s stand-alone (largely Westside) revenue grew 8. It is also going to house an extensive designer prêt collection by the country’s leading designers Wendell Rodricks.Retail Category . Westside has garnered numerous accolades –  Balanced Scorecard Hall of Fame  India Brand Summit – Brand Leadership Retail  IFA Visionary of the Year Award. Tata  Most Admired Large Format Retail Chain of the Year . 2002 – Mrs. 478 crore. Narendra Kumar.

there are two DM’s in every store. there are individual ASMs for individual stores. .  Each store has been divided into two departments one for apparel and other for the cosmetics.  Sales officers are the senior sales assistants. He is responsible for collecting daily report from the DM’s and reporting to the SM.  There are two training and development managers (TDM) in each store. He is responsible for all the sales and sales related activities for all stores in city. He is also responsible for the staff welfare of the store. Hence.ORGANIZATIONAL STRUCTURE OF WESTSIDE Store Manager Assistant Store Manager Department Manager Training and Development manager Sales Officer Sales Assistant The basic organizational structure of the organization is The function of store manager is to look after the functions of all the stores of Westside in that particular area/city.  The function of assistant store manager (ASM) to look after the function of a single store. The DM is responsible for the daily sales and customer relation activities in store. Hence. They are responsible for training of the sales assistants (SA). The not only involved in sales activities but also helps the SAs in selling activities.

ANNUAL REPORT The Westside stores. New Delhi (Moments Mall). EMPLOYEE BEHAVIOUR  Employees are specially trained for helping out their customers in reducing dissonance. Mumbai (R-City Mall). the predominantly private label fashion apparel format. However. from an operating perspective. Pune (Phoenix Market City). In the first quarter of the current financial year two further stores have been opened in Jalandar (Model Town) and Vizag (R K Estate) taking the total number of operational Westside stores to 69. the period under review was difficult for the Westside format. .  Each SA gives personal attention to the customer in selection and buying of their product.  The employees also learn how to work in a team to perform. as can be observed from the above chart the Company recorded thirteen new store openings . Mumbai (Infinity Mall). This format over the years has been rolled out across the country and currently covers over 38 cities. Bilaspur (City Mall). During FY11-12. during their commencement of work as everybody has been assigned their job by the DM. Udaipur (Rkay Mall) and Bangalore (Orion Mall).  They are trained to control their emotion even if they have to deal with customers who are very choosy and sometimes ridicule the collections available at store. thirteen stores were opened including the following Bhopal (DB City Mall). continue to be the mainstay of the retailing business of the Company. In the year under review. thereby building a good customer relationship. They are responsible for the customer satisfaction.being the highest in any year since the inception of this format. Varanasi (Dhanushree Complex). Sales assistants are the persons who are in direct contact of the customers.

. The initial response from customers in these respects has been encouraging.  Inventory build up was on the higher side vis-à-vis target levels given that same-store-sale growth was significantly below budgeted levels. essentially. this compelled price increases in the region of 15% to 20%. Further. during the year under review.  Some of the stores opened (especially those in larger malls) in the FY11 and during the period under review witnessed slower ramp up in sales and on the other hand involved higher operating costs including on account of common area maintenance cost charge-outs.  Customer off-take declined in volume terms especially in the first half and sales were skewed significantly to discounted end of season sale periods.  The conviction of the Board and the management on the attractiveness of the Westside format as a business model was one of the primary reasons to continue significant expansion of the chain during this period. including on account of the 10% excise duty imposed on branded apparel. key steps were initiated to refresh the product offering and also the look and feel of the stores. Significant costs pressures. this play-out implied lower realized gross margins. slowing demand and customer resistance to accept new price points resulted in higher inventory days.

during the period under review.Westside is ranked to be in the top quartile in terms contribution of private label merchandize to overall revenues. we consciously continue to invest in areas like significantly refurbishing the look and feel of certain stores in the portfolio and have concluded implementation of a warehouse management system. Further. We believe incurring of these additional costs on the above initiatives is warranted especially from a long term business model sustainability perspective. and we expect to realize tangible benefits over the medium term. From a cost perspective. the intent is to make the offering complete and collectively more attractive through the inclusion of select brands that account for up to 15% of the overall merchandize range on offer. in the period under review. . It allows for a better competitive position over the medium term. there have been pressures across line items including:  Sharply higher merchandize input costs given the rally in commodity prices in the second half of FY10-11. we have continued to emphasize improving the efficiency of our supply chain to effectively replenish our store network and significantly improve merchandize availability levels in stores. While we seek to exercise restraint on costs. At the same time.

the intent is to further scale up presence by opening as many new stores in the near to medium term. In summary. including the current difficult economic backdrop and the cost pressures. moderation in input prices for apparel in recent quarters is providing some relief. However. increase in wage bill (with minimum wage levels witnessing sharp increase in several States). also fuelled by improved hiring sentiment across industries at the entry level  higher energy costs in States like Maharashtra and escalating Common Area Maintenance charges in select malls  Increase in tax costs (service tax on rentals. These pronounced cost pressures across several line items and the significant inflation levels in various categories in the recent quarters continues to be a cause for concern. subject to availability of acceptable retail locations and estimated viability of economics at the store level. despite various challenges. Westside as a format continues to be sustainable and as stated previously. . higher VAT in most States and the 10% excise on branded garments).

Mysore. Westside has also recently won the ‘Images Retailer of the Year – Department Store’ at the Images Retail Awards of 2009. These factors have been such strong differentiators that even though the Westside chain is smaller than some of its competitors — it has 69 stores — it is one of the most successful and consistently profitable formats in the organised retail segment. That explains how Westside has emerged as a successful business. adopting a private-label format and fashioning. Mumbai. many of whom swear by the cut and fit. so to speak. Pune. With immense growth in the retail sector. Private Label’ award. The movement of men’s apparels is also due to the ladies buying for the men. Lucknow. architecting a distinct store identity. Westside has become one of the leading outlets to cater to the needs of potential buyers. Vadodra. STORE LOCATIONS There are more than 50 Westside stores established in various cities and states of India which includes Jammu. understanding the inclinations of its customers.TARGET CUSTOMERS Westside has continued to build on these lessons — by staying in touch with fashion trends. The Westside model Westside’s accomplishments can be attributed to its strategy of establishing stores in what can be described as catchment areas. Jaipur. These and other endeavours fetched Westside the Asia Retail Congress 2008 ‘Retailer of the Year. (Upper middle and middleclass) The attraction of the shopping is basically the female population. Indore. Rajkot. Gurgaon and Ghaziabad are few among others. Nagpur. . style and price of the chain’s offerings The age group of people visiting the store is in between 18-40. Westside has managed to ride the waves by concentrating on optimising costs. an honour bestowed by the retail industry. and continually enhancing their shopping experience. Despite the recent economic slowdown. Surat.000 people. with a customer base of over 800. a selling proposition that connects quality and affordability. tightening inventory control and taking a disciplined approach with aging merchandise. Noida. Delhi.

 It also provides ancillary services including general information. check cashing. and monitors each store’s requirements. repairs. alteration and tailoring. Westside has lined up a bonanza of surprise gifts. in Bangalore (erstwhile Littlewoods. adjustments and returns. fashion shows. in keep with the mood of the season. ships merchandise to all of the chain’s outlets. Those making purchases above Rs. With the sole objective of rewarding its loyal customers for their patronage. Every shopper gets a scratch and win card which entitles the.Another critical aspect for Westside has been a central warehousing system that controls products sourced from over 300 vendors. advertising. The Westside stores wear a bright. festive look and. entry into a contest. restaurants. STORE FORMAT Format: Mid-price offerings. Products are refreshed every week. private label fashion Launch: 1998. gift wrapping. interior decorating. parking. hosting a festival bright. a fact that enthuses Westside loyalists and gets them to make regular visits to their area stores.000-34.1500 are also entitled to receive other pleasant surprises. ARRANGEMENT  Ground floor  Cosmetics  Jewellery .000 square feet Present: 69 stores Plans: To open eight-ten stores in the current financial year SERVICE AND STORE ATMOSPHERE IN WESTSIDE  Pre purchase services include accepting telephone and mail orders. fitting rooms.  It provides post purchase service including shipping and delivery. window and interior display. a UK-based store) Selling proposition: Affordable style and quality merchandise Key categories: Apparel and footwear Store size: 8. credit etc.

been setting the standards for other fashion retailers to follow. A b o u t 9 0 p e r c e n t o f W estside’s offerings are home-grown. affordable prices. u n l i k e r e t a i l e r s w h o s t o r e m u l t i p l e l a b e l s . and they cater . One is that a majority of the brands the chain stocks and sells are its own. ever since.   Watches  Bags First floor  Women section  Children section  Household item Second floor( men section)  Casual clothing  Formal wear  Ethnic wear  Shoes The Promotion technique used by Westside:  Club West Card Programme  Fashion Logy It also provides 4 levels of services:  Self Service  Self Selection  Limited Service  Full Service PRODUCT LINE Style. Westside stands out from the competition for a variety of reasons. The Westside chain has. quality: these are the factors that have shaped Westside’s success story in the retail fashion stores b u s i n e s s .

Krishna Mehta and Mona Pali.t o d i f f e r e n t customer segments. The color palette for the festive collection includes flaming orange. royal blue and other vibrant colors to depict festivity. cosmetics and lingerie. PRIVATE BRANDS IN WESTSIDE  2F4U  SRC  Gia  Urban angel  Intima  David jones  Ascot  Blackberry  Lee  Spykar  Provogue The trendy household section has a complete new range of bed linen in elephant motifs. Westside has recently expanded its range of merchandise by offering outfits from some of India’s best known fashion designers. Anita Dongre. among them Wendell Rodericks. This is an interesting market shift. The store has also introduced a new range of furniture and other household goods including cabinets. The other 10 per cent includes toys. floral motifs and paisley designs. since it means moving away from the chains only-our-own-brands concept. butler trays and mirrors in wood with antique finish . Westside is a departmental store having several product line.

Marks & Spencer REFERENCES  http://www. Raymond’s (Be).mywestside.T h e other challenge for W estside is that the retail fashion business in t h e c o u n t r y i s becoming increasingly crowded with new players.docstoc.Mango and.com/aiding. but from the unorganized sector (98 per cent of India’s retail garment industry operates in the unorganized sector). Crocodile. Globus.Facing the challenge The greatest challenge for Westside in its quest for a place in the retail sun is not the competition from similar organized players.docstoc.org/wiki/Trent_%28Westside%29 . the latest.com/docs/16142957/Study-of-organizational-behavior-atwestside  http://www.aspx  http://en.com/docs/16142957/Study-of-organizational-behavior-atwestside  http://www. Among the new entrants have been W ills Sport.wikipedia. Indian and foreign. Lifestyle. Nike.