Shoppers Stop - Company Profile

Description: This Company Profile will assists individual investors, managers and companies in
evaluating opportunities, trends, market innovations, and selecting appropriate
information solutions in order to make effective decisions. The report has been
made after extensive research using the data available from reliable publications,
trade associations and the companies’ sources. 

The report elaborates on the company’s business structure and operations,

products and services. The report include strategic analysis that intends to aid
investors to find better prospects with the company and gain an insight into the
corporate policies. 

Report Highlights 

- Provides a snapshot version of the company’s performance.

- It offers key company data and analysis vis-à-vis to the major industry players.
This information is vital from the point of estimating business strategies of the
company and facilitate in decision-making process for the investors.
- Tracks major M&A trends and developments undertaken in the current fiscal year
to get a better understanding of company’s growth strategies. 
- The report identifies and analyzes the company’s strength and weaknesses to
come up with the possible opportunities for the company. 
- The report comments on the company’s outlook for the forthcoming periods on
the strategic point of views. 
- Supplemented with graphs and tabular information on the key industry players,
overall financial and market performances, list of products and services, and
company’s share performances.

Shoppers’ Stop Ltd, the 18-year-old retail chain promoted by K Raheja Corp, is plans to expand over the next three
years to catch up with competition.

Though the company was among the first movers in the country’s organised retail market, it has about 1.9 million (sq
ft of retail space today. It is considered a slow mover compared to competitors such as Kishore Biyani’s Pantaloon
Retail, which has over 10 million sq ft of space, or Reliance Retail, which has over 950 stores covering 4 million sq ft.
Aditya Birla Retail has 700 stores with over 2 million sq ft space. Both Reliance and Aditya Birla started operations in
2006.

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Shoppers’ Stop plans to add 1 million sq ft over the next three years. This would mean 18 new department stores by
2013, the highest addition in the company’s history. Currently it has 29 department stores and five Hypercity outlets,
apart from Crossword bookstore, and specialty store MAC, among others.
“From being steady, we are increasing the pace now. We are focusing on rolling our formats faster than earlier,”
Shoppers’ Stop Chief Executive Govind Shrikhande said.

The company will invest Rs 250-300 crore. It plans to raise Rs 350 crore through the qualified institutional placement
(QIP) route and other means by March 2011 to fund its expansion. “The fall in rents is helping us. The delivery of
properties is (also) much faster as any delay is creating problems for developers, too,” said Shrikhande.

According to him, retail rents in some cities have fallen 20-30 per cent from their peak. “Our performance in the last
few quarters is giving us the confidence to open more stores,” said B S Nagesh, vice-chairman of Shoppers’ Stop.
The company turned around in the first quarter of 2009-10, after losses in couple of quarters. It posted a net profit of
Rs 19.2 crore in the December quarter, against a loss of Rs 20.5 crore in the previous year.

Gross turnover during the period grew 15 per cent to Rs 427.4 crore. During the slowdown, retailers had either closed
down several loss-making stores or put expansion on the backburner to save cash. Shoppers’ Stop, too, pulled out
from unviable ventures. It closed a couple of Crosswords and airport retail store Stop & Go in Mumbai. It pulled out of
a catalogue retailing venture with UK’s Argos Group and moved out from food business. It also made UK’s
Mothercare store a shop-in-shops instead of a standalone property.

“Though they are the slowest, they are one of the oldest retailers in the country who have a lot of learning with them.
They made their mistakes and understood that mostly Hypercity and Shoppers’ Stop will work,” said Susil Dungarwal,
a former employee of Shoppers’ Stop and founder of Beyond Squarefeet, a mall management firm.

Vision:

To be a Global Retailer in India and Maintain No.1 position in the Indian Market in the Department Store Category.

Positioning

Shoppers’ Stop is positioned as a family store delivering a complete shopping experience defined by its mission,
vision and values.

1991: Shoppers' Stop launches at Andheri

Setting up shop in 1991 with its flagship store in Andheri, Mumbai, Shoppers’ Stop is a member of the K. Raheja
Corp. of Companies. Shoppers’ Stop is the first retail venture by the K. Raheja Corp. Promoted by Mr. Chandru L.
Raheja, Mr. Ravi C. Raheja and Mr. Neel C. Raheja, the K. Raheja
Corp. have been leaders in theconstruction business for over 48
years.

With its wide range of merchandise, exclusive shop-in-shop

counters of international brands and world-class customer service,
Shoppers’ Stop brought international standards of shopping to the
Indian consumer providing them with a world class shopping
experience.

India – 2000 & Beyond… 

Expanding its operations to Bangalore, Hyderabad, Jaipur, Delhi,
Chennai, Mumbai (Andheri, Bandra, Chembur, Kandivli, Mulund),
Pune, Gurgaon and Kolkata, Shoppers’ Stop is today recognised as
India’s premier shopping destination. With a customer entry of
about 50,000 customers a day, a national presence with over
6,00,000 square feet of retail space and stocking over 250 brands
of garments and accessories, Shoppers’ Stop has clearly become a
one stop shop for all customers.

Customer Profile
Shoppers’ Stop’s core customers represent a strong SEC A skew.
They fall between the age group of 16 years to 35 years, the
majority of them being families and young couples with a monthly
household income above Rs. 20000 and an annual spend of
Rs.15000. A large number of Non - Resident Indians visit the shop
for ethnic clothes in the international environment they are
accustomed to.

Range of merchandise…
The stores offer a complete range of apparel and lifestyle accessories for the entire family. From apparel brands
like Provogue, Color Plus, Arrow, Levi’s, Scullers, Zodiac to cosmetic brands like Lakme, Chambor, Le Teint Ricci
etc., Shoppers’ Stop caters to every lifestyle need. Shoppers' Stop retails its own line of clothing namely Stop,
Life , Kashish, Vettorio Fratini and DIY. The merchandise at Shoppers’ Stop is sold at a quality and price assurance
backed by its guarantee stamp on every bill. 
Their motto: “We are responsible for the goods we sell”.

Customer Rewards – The First Citizen

Shoppers’ Stop’s customer loyalty program is called The First Citizen. The program offers its members an
opportunity to collect points and avail of innumerable special benefits. Currently, Shoppers’ Stop has a database of
over 2.5 lakh members who contribute to nearly 50% of the total sales of Shoppers’ Stop.

International Affiliations
Shoppers’ Stop is the only retailer from India to become a member of the prestigious Intercontinental Group of
Departmental Stores (IGDS). The IGDS consists of 29 experienced retailers from all over the world, which include
established stores like Selfridges (England), Karstadt (Germany), Shanghai No. 1 (China), Matahari (Indonesia),
Takashimaya (Japan), C K Tang (Singapore), Manor (Switzerland) and Lamcy Plaza (Dubai). This membership is
restricted to one member organization per country/region.

Acquisitions
The Organisation, in 2000, along with ICICI ventures also acquired the reputed bookstore, “Crossword”, which
offers the widest range of books along with CD-ROM, music, stationery and toys. Services like Dial-a-book, Fax-a-
book and Email-a-book enable customers to shop from their homes. Crossword currently has 18 Stores.

The IT Backbone 
Realising the role of IT way back in 1991,
Shoppers’ Stop was among the first few
retailers to use scanners and barcodes and
completely computerise its operations. Today it
is one of the few stores in India to have retail
ERP in place, which is now being integrated with
Oracle Financials and the Arthur Planning
System, the best retail planning system in the
world. With the help of the ERP, they are able to
replicate stores, open new stores faster and get
information about merchandise and customers
online, which reduces the turnaround time in
taking quick decision.

Supply Chain Management

Understanding the importance of distribution
and logistics in ensuring that merchandise is
available on the shop floors, has led Shoppers’
Stop to streamline its supply chain. The
company has developed process manuals for each part of the logistics chain. These modules include vendor
management, purchase order management, stock receiving systems, purchase verification and inventory build up,
generation and fixing of price and store tags, despatch of stocks to the retail floor and forwarding of bills for
payment.

Future Plans
Shoppers’ Stop aims to position itself as a global retailer. The company intends to bring the world’s best retail
technology, retail practices and sales to India. Currently, they are adding 4 to 5 new stores every year

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COMPANY DETAILS

Name of the Organisation : Shopper’s Stop Ltd.

Head of the Organisation : Mr. B. S. Nagesh

Customer Care Associate, 
Managing Director & CEO

Address:

Corporate Office: 
Eureka Towers, 9th Floor, Link Road, Malad West, Mumbai 400064 
Tel: 28809898 / 28447337
Fax: 28808877