Post on 28-Oct-2014
SHOPPERS STOP
SHOPPERS STOP Started in Andheri, Mumbai in 1991 by the K. Raheja Corp. group of companies Awarded "the Hall of Fame" and won "the Emerging Market Retailer of the Year Award", by World Retail Congress at Barcelona, on April 10, 2008 27 stores in 12 cities in India Operate a number of speciality stores, namely Crossword Bookstores, Mothercare, Brio, Desi Caf, Arcelia
Time Line
Courtesy: http://corporate.shoppersstop.com
Price & Product Mix
Categories, Brands and Price Ranges of Mens Apparels and Accessories
Type
CategoryShirts
Sub CategoryFormal Shirts Semi-Formal Party Wear Casual Wear Formal Semi-Formal Casual Trousers
Trousers
Men's Apparel
Jeans T-shirts and Polos Kurtas, Pajamas and Stoles Ties Vest Innerwear Briefs Shorts Wallets Belts Watches Sunglasses Pens Cufflinks Handkerchief and Socks
Men's Accessories
Category
Sub Category
Formal Shirts
Shirts
Semi-Formal
Party Wear
Casual Wear
Brands Austin Reed Acropolis Louis Phillipe Park Avenue Stop Van Huesen Vettorio Frattini Wills Lifestyle Zodiac Allen Solly Indian Terrain Stop Vettorio Frattini Mario Zegnotti Wills Lifestyle ZOD! I Jeanswear Lee Spykar Pepe Wrangler LIFE
Price range 1399 - 1899 499 - 699 1199 - 2199 1299 - 1499 599 - 1099 1399 - 1499 899 - 1599 999 - 1299 1399 - 1799 1199 - 1499 899 - 1299 899 899 - 1499 699 - 1199 899 - 1299 1395 - 1795 399 - 899 1299 - 1399 1299 - 1699 1195 - 1495 766 - 1295 399 - 1099
Category
Sub Category
Brands
Price range
Blackberry'sLouis Phillipe
595 - 14951499 - 1599 1399 999 - 1099
Formal
Park Avenue Van Huesen Vettorio Frattini Wills Lifestyle
1599 1399 1195 899 - 1299
Trousers
Allen Solly Blackberry's
Semi-Formal
Indian Terrain
Mario ZegnottiStop Vettorio Frattini
1699699 - 1199
Casual Trousers
Spykar
1595
Category
Sub Category
BrandsI Jeanswear Lee LIFE Pepe Spykar Wrangler I Jeanswear Lee LIFE
Price range499 - 1399 1099 - 1999 499 1299 - 1899 1199 - 2599 1395 - 2195 399 - 599 699 - 799 499 - 699 299 - 899 599 - 1199 799 - 999 299 - 899 479 399 - 795 4995 - 7995 699 - 1299 999
Jeans
T-shirts and Polos
Mario Zegnotti Pepe Spykar Stop Vettorio Frattini Wrangler
Kurtas, Pajamas and StolesTiesVest Innerwear Briefs Shorts
Manyavaar Kashish Zodiac Jockey Tommy Hilfiger Jockey Tommy Hilfiger LIFE
999 - 1099
CategoryArrow Austin Reed
BrandsFossil Hidesign Kaos Nova Tommy Hilfiger Arrow Austin Reed Fossil Kaos Lorad Van Huesen CASIO CITIZEN FASTRACK FOSSIL GIORDANO HUGO BOSS KENNETH COLE NAUTICA PIERRE CARDIN TIMEX TITAN TOMMY HILFIGER XYLYS FASTRACK LIFE POLAROID PUSH AND SHOVE RAY BAN Cross Shaeffer Infinity
Price range899 - 1299 599 - 1049
Wallets
Belts
Watches
Sunglasses
PensCufflinks Handkerchief and Socks
1495 - 1795 545 - 1045 599 - 699 399 - 850 1395 - 1900 999 - 1199 599 - 999 1495 - 1795 699 - 1199 425 - 680 899 - 1199 1795 - 8995 4890 - 19250 795 - 3795 5295 - 13495 3450 - 11950 9995 - 13995 5595 - 14995 15995 5450 - 12950 1695 - 4995 2495 - 10000 6995 - 11495 12000 - 20000 995 - 2195 895 - 1095 2472 - 3100 1350 - 2100 3890 -7390 2395 - 7995 995 - 3000 1150 -1500
100 -250
Category
Sub Category
Brands Franco Leone
Price range 1795 - 2495 1895 - 2195 1985 - 2285 2195 - 2595 1885 - 2485 2185 - 2385 2395
Formal Footwear
Jean Lauren Lee Cooper Red Tape ID
Casual
Lee Cooper Red Tape
Price & Product MixCategories, Brands and Price Ranges of Womens Apparels and Accessories
Type
Category
Sub Category
Formal Shirts
Shirts
Casual
Formal trousers Casual Bottomwear
Bottomwear
Jeans Sarees Kurtas Churidars, Salwars and Dupatta Salwar and Churidar Suits
Women's Apparel Mix and Match
Ready to StitchSkirts Dresses T-shirts and Knits Bra Briefs
LingerieMaternity Lingerie Nightwear
Sub Category
Formal Shirts
Casual
Formal trousers Casual Bottomwear
JeansSarees
Brands Austin Reed Elliza Donatein Van Huesen Wills Lifestyle Stop Blackberry's I Jeanswear insense Lee LIFE Noi Pepe Remanika Wills Lifestyle Eliza Wills Expozay Insense I Jeanswear Kraus Life Lee Pepe Kasish
Price range 1399 - 1899 499 - 699 1199 - 2199 1299 - 1499 599 - 1099 1399 - 1499 899 - 1599 999 - 1299 1399 - 1799 1199 - 1499 1199 - 2199 999- 2299 999 - 1299 1299 - 1499 499 - 1799 499 - 1599
399 - 17992499 - 4599
Kurtas Churidars, Salwars and Dupatta
Salwar and Churidar Suits Ready to Stitch Skirts
Stop Workwear Haute Curry Ladies Patiala Stop Classics Biba Churidar Stop Naturals Kashish Churidar DIY Remanika Austin Reed Stop Crinkle Remanika insense Life for Women Remanika Wills Tangle Zoozoo Austin Reed insense Amante bwitch Enamor Lovable Amante bwitch Enamor Lovable Sweetdreams Pretty Secrets Austin Reed Espirit Lee Remanika
629 - 1299 199 - 499
799- 4995 2399 - 2999 599 - 2000
Dresses
499 - 1800
T-shirts and Knits
249- 1899
Bra
110 - 1599
Briefs Maternity Lingerie Nightwear
70 -699 495 - 1899 699 - 2499
Seasonal
895 - 2500
Type
Category Handbags
Sub Category Handbags Rings
Fine Jewellary
Earrings Pendants Nose Pin Sets Earrings Chains & Necklaces
Women's Accessories Fashion Jewellary
Bracelets & BanglesWatches Sunglasses Pen Wallets Socks Womens' Footwear
Sandals and SliponsEvening Wear
Sub Category
Brands Hidesign Elizza Donatein
Price range 1645 - 4545 999 - 1299 839 - 1399 1295 - 2295 1750 - 3650 5225 - 9950 6915 - 11748 8600 - 9550 3250 - 9425 1555- 4890 1283 - 4598 740 - 6765 890 - 4970 370 - 2240 1950 - 2500 95 - 595 3500 - 9000 490 - 3990 565 - 1275 2450 - 6750
Handbags
Haute Curry Holi Rocky S Gili Sparkles Gili Gili Sparkles Sparkles Estelle Zaveri Pearls Estelle
Rings Earrings Pendants Nose Pin Sets
Earrings
Infinity Zaveri Pearls Infinity Zaveri Pearls Estelle Infinity
Chains & Necklaces Bracelets & Bangles
Casio Citizen Fastrack Fossil Giordano
12995 6490 - 18550 695 - 2195 4495 - 7995 3750 - 8950 5495 - 12995 5950 - 9950 1595 - 5495
Watches
Kenneth Cole Pierre Cardin Timex
TitanTommy Hilfiger Xylys Fastrack Life
2750 - 100003995 - 7495 12000 - 20000 695 - 2495 895 - 1095 2472 - 3102 1350 - 2150 3890 - 6290 1160 - 7995 995 - 4250 395 - 795
Sunglasses
Polaroid Push and Shove Ray Ban
PenWallets Socks Sandals and Slipons Evening Wear
Cross Sheaffer HoLII
Van HeusenCatwalk
79- 89750 - 1295 750 - 1295
Price & Product Mix
KIDS ZONE
Type
CategoryToys
Sub CategorySoft Toys Dolls Activity and Games Maternity Baby Boyswear Girlswear Travel Feeding Toiletries Toys & Gifts Bath time Nursery Footwear Home Safety Topwear Skirts & Dresses Bottomwear Ethnic Topwear
BrandsPlay N pets Barbie Kelly
Price range199 - 3999 495 - 2995 299 - 1199 499 - 1299 599 - 1299 345 - 15295 295 - 7495 95 - 1295 125 - 4595 195 - 2995 225 - 20695 299 - 1099 345 - 1345 349 - 1199 599 - 1299 399 - 1299 899 - 1299 249 - 1199 149 - 1199
Mothercare
Mothercare
Kid's ZoneGirls
Stop Girl Mothercare Gini & Jony Stop Canvass Stopboy
Boys Bottomwear Boys' Watches Girls' Gini & Jony Boys' Girls' Gini & Jony Zoop Mothercare Gini & Jony
350 - 900
299 - 1199 349 - 1299
PRIVATE LABELS
Private Labels Currently 10 private labels as compared to 4 in 2002. Was introduced to provide exclusivity in addition to filling in the gaps in categories where no other brand is present. Plans to increase the advertising spend on private labels to position them as brands. Their aim is to ensure that private labels contribute to at least 25% of the total sales
Private Labels Major Private Labels: Kashish - Mens's Ethnic Wear Stop - Western Wear - Men & Women Life - Mens Casual Wear , Jeans Wear Mario Zegnoti - Men's Formal Wear Acropolis - Men's Formal Wear Push and Shove Mens Eye Wear Vettorio Fratini - Premium Men's Wear
Private Labels Private labels account for about Rs 200 crore in revenues. Sales grew by 17% for Private Labels Contribution of private labels has decreased to 19.9% of sales from 21.1% last year Margin for private labels is 15%-20% for FMCG and 30% for Consumer durables.
Investments in various verticals
Various Businesses by K Raheja Group Start something new Crossword Bookstore HomeStop (Furnishings) Brio Franchised Coffee bars Desi Caf HyperCity MAC (Cosmetics) Mother Care Time Zone
True to its mottoLatest Addition to the Line: German brand Mustangs foray into Indian Markets Shop-in-shop @ Shoppers Stop Airport Retail: Started at Bengaluru, Mumbai and Hyderabad. Shut down at Mumbai due to Swine Flu, Low passenger Traffic.
Online Store of Shoppers Stop
Zoozoo Collection
Single Gift Voucher redeemable at Crossword, Shoppers stop, HomeStop, Mother care etc. Customization + Gifting Surprizes
Keeping track of what people buy? ERP Implementations deployed applications for Customer Loyalty Management CRM for First Citizens Club (1 mill customers) Data Mining and Business Intelligence helps customize the promotions for Loyal customers Wi-Fi, Advanced Payment systems server virtualization, B2B portal, RFID for monitoring movement
First Citizen and Project Drishti "First Citizen" reflects commitment to offering the ultimate shopping experience Reward Points every time at Shoppers Stop. Exclusive benefits & privileges Updates on what to look forward to shop for
Project Drishti: Data Warehousing and Mining Launched in 2008, enabled micro segmentation Enabled micro-segmentation across all formats
Lowest shrinkage in Business 0.4% shrinkage levels for the last 4 years The reason they say is the investments in Technology. Approach to IT- Nothing but the Best HyperCity runs on E3 technology The most advanced replenishment technology. The logic developed in-house from pattern study. Business Intelligence @ Shoppers Stop
Growth Strategy
Growth Strategies Corporate growth strategies are incorporate a combination of: M&A Organic growth Restructuring Corporations strategic plans are dominated by events or milestones. E.g. revenue/profit targets, IPO and entry into certain markets. Corporations should not lose sight of longer-term changes in the market, competition, and technological and regulatory environment. Strategic mistakes are often made when things appear all rosy.
Elements of Growth Strategy1. Customer Focused Right product, packaged in the right solution with well thought out support systems that the right target market really needs and wants
2. The Company is Oriented to Performance Incentives are aligned to self-responsibility, authority, accountability and ability to take risks
3. Youve Removed the Rub Points Smooth communication flow from what is promised to the customer all the way from sales through order processing, production, billing, delivery and after sales support
Elements of Growth Strategy4. Your People Understand how the Company Makes Money Everyone should know how their expertise and efforts contribute to the bottom line and where they fit in the financial equation.
5. You Focus on and Make Decisions Based on the Right Key Performance Indicators Your indicators should show you where you have cash leaks in the system, before you have to start bailing
Growth Strategy of Shoppers Stop Believe in Organic growth Ramp up to 49 stores spread across 3.6 million square feet. In addition to Tier-1 and Tier-2 cities where the company has a presence, they have also identified 23-24 cities for expansion. The total number of First Citizen members has crossed the 1 million mark.
Growth Strategy of Shoppers Stop Extensive use of IT to streamline various processes and focus on systems. Strong understanding of the real estate business Enhancing our human capital
Factors inhibiting growth Execution Risk Employee Retention: Poaching between retailers. Delay in store delivery: Any delays in the construction of the malls will delay the companys retail expansion plan. High retail lease: Boom in real estate prices led to an increase in retail rentals. Store renovations: Affect cash flows and also have a gestation period before they can ramp up to original levels.
Profitability Analysis
Year 2008-09 Apparel contribution reduced from 61% (2008) to 59% (2009) Increase in private label sales by 17% Gateway Multichannel Retail (India) Limited, a
subsidiary closed down operations
Sales growth, Mar-08, Sales growth, Mar-06, Sales growth, Mar-07, 34.20% 33.20% 32.70% Sales growth, Mar-05, 27.30%
Sales growth
15.60%
Falling footfalls and poor conversion ratio Organised retail sector: 11% sales decline
Performance(All amounts in Rs. million) Retail turnover (Sales) Total expenditure (LOSS)/PBT (LOSS)/PAT Mar-09 12,709.41 13,104.34 -643.57 -637.18 Mar-08 10,993.68 10,848.51 145.17 69.67 Change % change
15.6% 20.8%
Expenses as a percentage of sales COGS
Mar-09 63.5%
Mar-08 63.0%
Change
Employee costOperating and administrative expenses Interest and finance charges Depreciation and Amortisation
6.9%25.8% 2.0% 5.0%
7.1%24.0% 1.0% 3.6%
Operating profit Margi
Like to Like sales growth reduced New Store launches Decrease in Gross margins
Profitability trendGross profit margin, Mar-05, 29.30% Gross profit margin, Mar-08, 32.00% Gross profit margin, Mar-09, 31.70%
Gross profit margin Operating marginOperating margin, Mar-05, 6.70%
PBT margin PAT margin
PAT margin, Mar-05, 3.80%
Operating margin, Mar-09, 1.80%
PAT margin, Mar-09, 4.60%
High borrowing costs Reflected in low debt-equity ratio
EffectROI & ROCEROI, 2004-05, 22.00%
ROIROI, 2006-07, 9.30%
ROCE
ROCE, 2004-05, 14.20%
ROCE, 2006-07, 6.20%
ROCE, 2008-09, -11.10%
ROI, 2008-09, -24.10%
The Way Ahead Plans to open 3 new stores before March 2010 Targeting doubling the store count in next three years.
Plan to Raise funds by allotting 40 lakh shares to institutional buyers & 4 million convertible warrants to promoters. Plans to open stores in five smaller cities like Amritsar, Mangalore and Vijaywada.
Collaboration with German jeanswear and lifestyle brand MUSTANG which will operate shop-in-shops within Shoppers Stop. Plans to increase 19% stake in Hypercity to 51% by June 2010
Recommendations To go for Low cost funds Cut down Operating expenses Focus on Private labels
References www.shoppersstop.com http://corporate.shoppersstop.com en.wikipedia.org/wiki/Shoppers'_Stop www.moneycontrol.com/.../shoppers-stop-toraise-funds_425018.html