3. SHOPPERS STOP : A SNAPSHOT A Multi Channel Fashion & Lifestyle Retailer Founder : K Raheja Group Year Of Establishment : 1991 Year Of Incorporation :1997 Numer Of Stores & Services : 34 In 13 Cities National & International Brands :Louis Philippe, Pepe, Arrow, BIBA, Gini & Jony, Carbon, Corelle, Magppie, Nike, Reebok, LEGO, Mattel,CK Jeans, Tommy Hilfiger, Mustang, Dior Own Labels, Such As STOP, Kashish, and LIFE Speciality Stores : Home Stop, Cross Word, Brio, Desi Café, Hypercity, MAC, Arcelia, Mothercare, Nuance Group, Time Zone, Hypercity Argos
4. VISION To Be A Global Retailer In India And Maintain No.1 Position In The Indian Market In The Department Store Category.
5. SPECAILITY STORES Shoppers Stop: Apparel, Accessories, Cosmetics, And Home And Kitchenware Products; Homestop : Provide Home Decor Products, Furniture, Bath Accessories, Bedroom Furnishings, Mattresses, Draperies, Carpets, Modular Kitchens, And Health Equipment; Crossword : Offer Books, Magazines, Cd-roms, Music, Stationery, And Toys. Mothercare : Maternity, Infant, And Childcare Products Early Learning Centre Brand: Educational Toys For Children Aged 0-6 Years Hypercity : Food And Grocery, General Merchandise, And Apparel M.A.C., Estee Lauder, And Clinique :Cosmetics Nuance Group AG : Airport Retailing Arcelia: Cosmetics, Fragrances, Fine Jewellery, Footwear, Handbags Brio And Desi Café: Food And Beverage
6. AWARDS & ACCOLADES Best Distribution Centre Management System at Network Computing EDGE and PC Quest Enterprise Award - 2009. Best Visual Merchandising (Store Launch Category) at VMRD Retail Design Award - 2009. Most Admired Retailer of the Year- Consumer Relations at IRF 2009. Customer & Brand Loyalty in the Retail Sector at Loyalty Summit Award 2010. Most Admired Large Format National Fashion Retailer – Outstanding Achievement in Consumer Recognition and Loyalty at the Images Fashion Forum. Most Admired Fashion Retail Professional of the year to Mr. GovindShrikhande at the Images Fashion Forum. Gitanjali IFA Most Admired Large Format Retailer of the year – Partner Awards GiniJony IFA Most Admired Large Format Retailer of the year – Partner Awards Triumph Maximum Consumer Reach – Partner Awards
19. RESEARCH OBJECTIVES Why Shoppers Stop? : To Identify Relative Strength And Weaknesses Of “Shoppers Stop” Vis-ã -Vis Other Major Competitors With Respect To Retail Store & Consumer Relationship Management. Why NOT Shoppers Stop? To Examine Technology ,Innovation & Human Factors that makes Consumers Switch Over Another Company & Influencing Consumer Loyalty.
20. METHODOLOGY TYPE OF RESEARCH : DESCRIPTIVE & ANALYTICAL RESEARCH SAMPLING TECHNIQUE: CONVENIENCE SAMPLING SAMPLING UNIT: CUSTOMERS VISITING SHOPPERS STOP DEPARTMENTAL STORES SAMPLE SIZE : 70 UNIVERSE OF STUDY : SHOPPERS STOP DEPARTMENTAL STOP IN MUMBAI ,MAHARASHTRA SOURCE OF DATA : PRIMARY & SECONDARY DATA DATA COLLECTION TOOL : QUESTIONNAIRE DATA REPRESENTATION TOOL : TABLES, GRAPHS & CHARTS
40. SUGGESTIONS & RECOMMENDATIONS Research & Development Activities On Consumer Expectation Periodically Understanding What Customers Really Want Is Essential To Identifying Service Activities Worth Investing In Should Cut Down Prices & Offer Better Discounts And Not Jus End Of Season Sale Bring Customized Service Soultions In The Indian Apparel Retail Market . For Occasion & Event Based Purchases & For Ever Changing Fashion Needs
Shoppers Stop Limited a multi channel fashion 7 lifestyle retailer was founded by K Raheja Corp in 1991 laying the foundation of the modern retail industry in India. It started operations with the first store in suburban Mumbai and today has 34 large format department stores a well as an online presence. known for its superior quality products, services and above all, for providing a complete shopping experience,The company sells a range of domestic and international premium brands such as.... in categories such asapparel, accessories, cosmetics, home, kitchenware ,bed and bath.
Apart from Shoppers Stop flagship business division i.e shoppers stop departmental stores, shoppers stop runs a no. Of speciality stores such as ...
Although debt as a percent of total capital decreased at Shoppers Stop Limited over the last fiscal year to 46.02%, it is still in-line with the Multiline Retail industry's norm. Additionally, even though there are not enough liquid assets to satisfy current obligations, Operating Profits are more than adequate to service the debt. Accounts Receivable are typical for the industry, with 3.47 days worth of sales outstanding. Last, inventories seem to be well managed as the Inventory Processing Period is typical for the industry, at 56.44 days.
Although debt as a percent of total capital decreased at Shoppers Stop Limited over the last fiscal year to 46.02%, it is still in-line with the Multiline Retail industry's norm. Additionally, even though there are not enough liquid assets to satisfy current obligations, Operating Profits are more than adequate to service the debt. Accounts Receivable are typical for the industry, with 3.47 days worth of sales outstanding. Last, inventories seem to be well managed as the Inventory Processing Period is typical for the industry, at 56.44 days.
Although debt as a percent of total capital decreased at Shoppers Stop Limited over the last fiscal year to 46.02%, it is still in-line with the Multiline Retail industry's norm. Additionally, even though there are not enough liquid assets to satisfy current obligations, Operating Profits are more than adequate to service the debt. Accounts Receivable are typical for the industry, with 3.47 days worth of sales outstanding. Last, inventories seem to be well managed as the Inventory Processing Period is typical for the industry, at 56.44 days.
Although debt as a percent of total capital decreased at Shoppers Stop Limited over the last fiscal year to 46.02%, it is still in-line with the Multiline Retail industry's norm. Additionally, even though there are not enough liquid assets to satisfy current obligations, Operating Profits are more than adequate to service the debt. Accounts Receivable are typical for the industry, with 3.47 days worth of sales outstanding. Last, inventories seem to be well managed as the Inventory Processing Period is typical for the industry, at 56.44 days.
Although debt as a percent of total capital decreased at Shoppers Stop Limited over the last fiscal year to 46.02%, it is still in-line with the Multiline Retail industry's norm. Additionally, even though there are not enough liquid assets to satisfy current obligations, Operating Profits are more than adequate to service the debt. Accounts Receivable are typical for the industry, with 3.47 days worth of sales outstanding. Last, inventories seem to be well managed as the Inventory Processing Period is typical for the industry, at 56.44 days.
Year over year, Shoppers Stop Limited has been able to grow revenues from 13.5B to 15.2B. Most impressively, the company has been able to reduce the percentage of sales devoted to selling, general and administrative costs from 28.82% to 23.73%. This was a driver that led to a bottom line growth from a loss of 636.5M to a gain of 358.8M.
First Citizens Club , a loyalty program of shopper stop has continued to be the main stay of shoppers stop. With a total membership exceeding 1.6million, it is not only a source of substantial competitive advantage, but is also a very strong strategic tooolSSL invest in front and back end processes and systems. The companies continuous investment in people, process and technology is a factor leading to sustainable and profitable growth for the company. four Distribution Centers covering more than 400,000 square feet handling over 400,000 SKUs per year, and working 24x7.periodically assess our Customer Care Associates (CCAs) across all levels through assessmentcenters to identify competency gaps and use development inputs (i.e. training, job rotation etc.) to bridge them. We benchmark ourcompensation and benefits through consultants, with the best in the industry to pay our associates accordingly.benefit from our Promoters’ association with the real estate business and their relationships with developers, which have helped us acquire preferred properties at competitive rates.The Company pioneered the departmental store format in the Indian market when the Indian consumer was deprived of choice. Customers were drawn by the shopping experience. This is the differentiation that the Company continues tobank on. The Company imparts special training to its employees to ensure that service is not compromised on.a professional and well-established management team, headed by Mr. GovindShrikhande. internal and external auditors are amongst the Big 4 audit firms of the globe. The Board has 5 independent Directors.been in existence for so many years and due to its strong brand image, the Company believes that it is well placed in negotiations / re-negotiations of property rentals, better commercials terms with merchandise suppliers etc.The Company has successfully grown gross margins year on year.Risks and Concerns:• Execution: We believe the key risk to our growth is execution risk. The next wave of expansion is expected to happen over the next30 months and the timely execution of this expansion will be critical. The Company has a strong execution team and we believe ithas the capability to execute varied retail formats.• Employee retention: With the Indian economy back on a growth path the Company believes that employee satisfaction and retentionwill become very important. The demand for reasonably experienced personnel in modern retail will only increase in the near termand long term. Your Company believes that this problem will persist until the industry reaches a steady growth phase.• Delay in store delivery: Majority of the new stores planned are in malls and any delays in the construction of the malls will delay thecompany’s retail expansion plan. However, the Company has built up a robust pipeline of future stores and believes that delays willnot materially affect expansion.• Pressure on retail lease rentals: Rent is one of the largest components in a retail business’ fixed costs, and the case is no differentfor the Company. Rentals are expected to harden once again in the near term.Management Discussion and Analysis Report Shopper's Stop Ltd.Annual Report 2009-10 | 41• Government levies: Retail is currently not viewed as an industry in India. Hence there are certain levies / cascading effect of taxes onthe business which are proving to be a very large burden as there are no modes for the industry to recover or pass on these levies.Delay in the roll out of the GST regime is also a matter of concern.company has invested in other entities and in the current economic scenario, it is expected that the returns from these will have a delayed gestation period than what was originally envisaged.
Problem definitionRelative strength and weaknesses of “ShoppersStop” vis-à -vis other major competitors with respect to following factors that influence store loyalty.1. Factors affecting consumer’s choice of mega stores.2. Consumer rating of Shoppers Stop against competitors3. Do consumers remain loyal to Shoppers Stop for particular products?4. What is the profile of customers?5. Are the customers satisfied with Shoppers Stop services and personnel?
The data is collected outsidethe major retail outlets, where the respondents wereconsumers who had completed their shopping in anorganized retail store and willing to respond to thequestions. The data has been collected from Mangalorecity residents.