1. Introduction
About Retail Sector
Retailing in India is up for change. It has broken the eggshell and ready to grow
into a giant that will match the retailing practices of the west. There are two types
of retailing first organized and another is unorganized, in India there is
unorganized retailing. In India the share of organized retailing is less than 10%
and only 8% people are engaged in organized retailing.
Above is the chart showing the Space Distribution of different metros of India. In
this chart Delhi has maximum space which can be utilized as Retail space.
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2. Here we have shown the break-up of Delhi & NCR area where Gurgaon has the
maximum space.
India is being seen as a potential goldmine for retail investors from over the world
and latest research has rated India as the top destination for retailers for an
attractive emerging retail market. India’s vast middle class and its almost
untouched retail industry are key attractions for global retail giants wanting to
enter newer markets. Even though India has well over 5 million retail outlets, the
country deeply lacks anything that can resemble a retailing industry in the
modern sense of the term. This presents international retailing specialists with a
great opportunity. The organized retail sector is expected to grow stronger than
GDP growth in the next five years driven by changing lifestyles, growing income
and favorable demographic outline.
About Shopper’s Stop
Shoppers' Stop is a chain of retail stores in India owned by K Raheja Corp. It was
started in 1991 for its first store in Andheri in Mumbai near Vishnu Baug Colony
in S.V. Road. Currently it operates stores in Bangalore, Hyderabad, Lucknow,
Gaziabad, Jaipur, Delhi, Chennai, Mumbai, Pune, Gurgaon and Kolkata.
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3. Shopper’s Stop is an mixture of the leading international and national brands in
clothing for men, women, and kids; accessories, fragrances, cosmetics, footwear;
home furnishing and decor products, their employee told us that their stores aim
to provide shoppers a truly international shopping
destination in local areas.
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In April 2008, Shoppers Stop changed its logo and
adopted the mantra quot;Start Something Newquot;. Around the
same year it was awarded as the Emerging Retailer of the
Year by the World Retail Congress (WRC). Its Managing Director Mr. B.S
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www.wikipedia.org/wiki/Shoppers%27_Stop
Nagesh who is incidentally the first employee of the company has been inducted
into the Retail Hall of Fame at the WRC.
Shoppers Stop started off as a department store in the early nineties.
Subsequently it has diversified into Specialty business represented by Crossword
Book Stores, Brio (Coffee Chain), Desi Cafe (Indian Fast Food), Mother Care
(Franchisee of the UK brand for mothers and kids) and MAC (Makeup Artist
Cosmetics). Shoppers Stop the department store runs one of
India's most effective loyalty programs called First Citizen which has over 1
million members. Over 65 percent of Shopper’s Stop revenues come from these
First Citizens members. Actually these First Citizen members are their loyal
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4. customers, means they are the main customers who come again and again for
shopping.
Shoppers Stop is recognized by the Indian Retail industry as pioneer in the use
of technology. Organised retailing; supported by world-class systems and
practices; and a talented group of people with a shared passion for making every
shopper visit a memorable one, has helped Shoppers Stop to grow from a single
store in 1991 to the largest chain of Department Stores in India today.
Vision of the Shopper’s Stop
“To be a Global Retailer in India and Maintain No.1 position in the Indian Market in the
Department Store Category”. This statement was described by the employee and
he told us that as you all know that we are king in our sector so we want to
maintain that position in the market and they are thinking for opening more stores
because of increasing competition. But if we analyse current trend then we have
to use wait and watch policy.
He added that, “they are looking festive season as opportunity for their business”.
India – 2000 & Beyond…
Expanding its operations to Bangalore, Hyderabad, Jaipur, Delhi, Chennai,
Mumbai, Pune, Gurgaon and Kolkata, Shoppers’ Stop is today recognised as
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5. India’s premier shopping destination. Their employee told us that around 1000
customers visit there on daily basis out of which many are for window shopping
but they are planning for making those customers to buy something and currently
they are dealing with over 250 brands of garments and accessories, Shoppers’
Stop has clearly become a one stop shop for all customers.
Customer Profile
Shoppers’ Stop’s customers 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 cultural clothes in the international
environment they are used to which means people from abroad are also
interested in shopping in Shopper’s stop. Their target customers are upper
middle class and upper class.
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 special
benefits. Currently, Shoppers’ Stop has a database of over 2.5 lakh members
who contribute to nearly 65% of the total sales of Shoppers’ Stop.
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6. International Affiliations
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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.
The IT Backbone
Shoppers’ Stop was 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 (Enterprise resource planning) in place, which is the best retail
planning system in the world. With the help of the ERP, they are able to open
new stores faster and get information about merchandise and customers online,
which reduces the time in taking quick decision.
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7. 2
www.shoppersstop.com
Objectives of Shopper’s Stop
Their main objective is to make their customer satisfy and then profit through
sales, employee added after all every organization works to earn money which is
possible through good sales and if our customers are not satisfy then it will be
difficult for us. So we put our effort on retaining our customers because retaining
old customers is more profitable than making new customers.
And if we analyse this statement then we come to know that their 65% of their
customers are their first citizen customers.
Today people goes for variety and shoppers stop is doing that, they offer total
250 brands to their customers which act as their strength and help them retaining
as well as making new customers. They believe in producing quality so they offer
quality products basically international brands like Louis Phillip, Black Berry,
Police, DKNY, Ferrari, etc.
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8. 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
Type of Retail Outlet
Shopper’s Stop is known as multi-Brand retail out let because of their verity of
Products. They offer various products like apparels, Accessories, Toys,
Fragrances, Beauty Products, Travelling products, Home Appliances, etc. It will
be easier to understand with Merchandise Hierarchy which Shopper’s Stop offers
to his/her customers, which is on the next page.
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9. F ragran ce &
D i v i sio n A pparel H om e & T ravel G ift id e a s
B e a u ty
M en P er fu m es
H om e Sa le & D isco u n t
D e p a r tm e n t W om en Sk in C are
T ravel G ift V o u c h e r
K id s C o sm e tics
F orm als M en K i tch e n M en
C a su a l s W om en Bed W om en
A cce sso r i e s U n isex B a th H om e
K ids
F orm als O ily Sk in L u ggage U n ise x
C a te g o r y C a su a l s D ry Sk in L a p to p B a g s M em bers
A cce sso r i e s N o rm al Sk in T ravel
A cce sso r ie s
Boys F or E yes
G irls F or N ails
S h o p p e r s S to p ’ M e r c h a n d i se H i e r a r c h y
T oys F or F ace
P h o to F r a m e s W a tc h e s
H alf Sleeve Pillow C over
F u ll Sleeve D in n er Set Pen s
K i tc h e n T o o l s H an d Bags
B e d S h e e ts Je w elr y
H alf Sleeve B a th R o b e s T ies
S u b - C a te g o r y
F u ll Sleeve T ow els C u fflin k s
C r y ste l s C r y sta l s
V ases T op w ear
H alf Sleeve P e r fu m e s
F u ll Sleeve
L ee A d id as S to p
W ran gler F errari M agppie L ee
Z odiac Po lice
C orelle B iba
s
B ib a Ivy A didas
B ran ds L oreal L ak m e
S to p G iordan o
D iy C ham bor M ayb elin e
C a se L o g i c C orelle
L oreal Sire C a se L o g ic
A d id as L ak m e S a m s o n i te
Ivy
L ee M ayb elin e
P o lo T -Sh ir t
2 B u tto n
C u fflin k S te e l D S
B on e C h in a
S h o r t K u r ti P r i n te d
S ty l e s/ F a sh i o n L o n g K u r ta
Je a n s L e a th e r
W h eeler
Sm all
S h o r ts
T -sh i r t
D iffe r e n t Size D iffe r e n t P a ck D iffe r e n t Size D iffer e n t R a n g e
D iffe r e n t C o lo r Pr ice R an ge D iffe r e n t C o lo r 1 0 % , 4 0 % , e tc
Price R an ge Price R an ge
D iffer e n t
D iffe r e n t Size D iffe r e n t P a ck
O p ti o n s Vou ch ers
D iffe r e n t C o lo r Pr ice R an ge 1 0 0 ,2 0 0 ,5 0 0 , e tc
Price R an ge in R s.
D iffe r e n t Size D iffe r e n t P a ck D iffe r e n t Size 9
D iffe r e n t C o lo r Pr ice R an ge D iffe r e n t C o lo r
Price R an ge Price R an ge
10. From the above chart we can understand that what type of retail outlet Shopper’s
Stop is? They offer various products like Apparels, Fragrance & Beauty, Home &
Travel, Gift ideas. Under this they have different Categories, Brands and Styles
to offer customers. They have many other showrooms of Shopper’s Stop in Delhi
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11. and NCR, so we can say that they have long chain of retail outlets. They also
offer online purchasing which means that they are using new technology to
increase their sales.
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12. Controllable & Uncontrollable Factors
Controllable & Uncontrollable factors are those which are directly or indirectly
affect the retail outlet. The difference between these two factors is that one can
be controlled by the retailer and another cannot be controlled. The variables
which are controllable can be change according to the retailers but if we talk
about uncontrollable factors then the retailer have to change him/her according to
those factors. There are various Controllable &uncontrollable Factors. When we
ask about these factors to the employee of Shopper’s Stop, he told us that
Controllable Factors of Shopper’s Stop
1. Pricing
2. Store Location
3. Managing a business/workforce
Pricing
He told us that setting price of a product is in our hands. This is our decision that
how much profit we want to make by selling our products. Sometimes we have to
set our prices according to the competition.
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13. Store Location
Selecting the location for the store is in the hands of retailers because before
selecting the location they have to check many factors like walking traffic,
competitor, parking, infrastructure, etc. They also have to decide that they want
to buy the site or they will take it on rent. So after deciding all these things they
reach to the final decision.
Managing a Business/Workforce
He told us that managing the workforce means a lot to them, because they have
to decide that what type of people they need what type of training our employees
need, and what will be the salary of our employees. All these things can be
controlled by the retailer.
Uncontrollable Factors of Shopper’s Stop
1. Government Policies
2. Seasons
3. Inflation Rate
4. Technology
5. Infrastructure
Government Policies
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14. Government policies or Legal Restriction cannot be controlled and the big
example of this is “sealing of illegal shops”. The taxes and duties which retailers
have to pay to the government.
Seasons
He told us that natural climates cannot be controlled and they have to go
according to that like in winters they have to change their theme and products
also. He also told us that a sometimes season plays a negative role like in rainy
season their sales goes down. So these things cannot be controlled and they
can only launch new marketing strategies to attract the customers.
Inflation Rate
He told us that as we all know that now inflation rate is more that 12% so it is
creating more problems for us because due to this people are getting more
aware of saving money and due to which our sales is also affected. If we analyze
the global market then we will see that every sector is going down except one or
two. And retail sector is also not doing well these days. Against this we can’t do
anything, we can only wait.
Technology
He told us that day by day the technology is upgrading and the problem is that
the new competitor comes with new technology because of which they also have
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15. to upgrade their technology which results more expenditure, which is not good for
any business.
Infrastructure
Infrastructure includes the roads, surroundings, etc. All these things are
governed by the allotted authorities like DDA, NDMC, HUDA. So it can’t be
controlled.
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16. Supply Chain
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 buildup, fixing of price and store tags, dispatch of stocks to the retail
floor and forwarding of bills for payment.
If we talk about various brands then the answer is that they have a direct tie ups
with different companies and companies deliver all the needed products to their
door-step means deliver all the goods to every shopper’s stop showroom.
But there are some companies which do not provide them these services so for
those they have their own carrier.
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17. Situational Analysis
Situational Analysis includes current organizational mission, current ownership
and management alternatives, and current goods/services category. As we have
explained in explained above about the mission management alternatives,
current products, so now here we have done the SWOT analysis of Shopper’s
Stop.
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18. Strength
• Variety
• Range
• Different Brands
Weakness
• Very high rates : They provide international Brands due to which their
prices are very high.
• Less Schemes : They do not offer so much schemes, they offer schemes
only on special occasions like Diwali, Independence Day, etc.
• Less Discounts : They offer less discount in their schemes, they basically
offer 10% to 20% discount
Threats
• Government Policies
• Entrance of New Players
Opportunities
• Awareness about the brands
• Quality
• Youngsters
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19. Recommendations
1. They should introduce more schemes, discounts, sales to increase the
sales.
2. They should introduce Low rate Brands which will attract the middle class
customers also or brands for masses.
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