Presentation on Shoppers Stop

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description

About Shoppers stop, their range of merchandise

Transcript of Presentation on Shoppers Stop

Page 1: Presentation on Shoppers Stop
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Shopper’s Stop Ltd. (Shoppers Stop) is a departmental store.

It falls in the category of a MBO. The company offers branded and private label,

products including apparel, footwear, perfumes, cosmetics, jewellery, leather products, accessories, home products, books, music and toys.

Shoppers Stop, HomeStop, Crossword, Mothercare, HyperCITY, GourmetClTY, Nuance and Timezone.

It operates about 41 Shoppers Stop stores, 22 Mothercare stores, 51 Crossword stores and 4 HomeStop stores.

The company principally operates in India and is headquartered at Mumbai, India.

What is Shopper’s Stop

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History and Evolution 1991 1992 1993 1994 1995 1997 1998

Opened their first store in Andheri, selling only Menswear

Womens wear was introduced.

Added Children’s & Non Apparel sections.Loyalty

program titled first citizen was launched.

Opened their second store in Bangalore.

Launched their credit card for loyalty members.

Shoppers Stop incorporated as a body corporate.

Opened their third store in Hyderabad.

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History and Evolution 1999 2000 2001 2002 2003 2004 2005

Opened their fourth & fifth stores in Jaipur & Delhi.Implemented JDA Retail ERP.

Opened their sixth & seventh stores at Chennai & Chembur.

Acquired Crossword – India’s leading retail book chain.

Opened their 8th & 9th stores in Pune & Bandra.

Opened their 10th store in Kandivali (Mumbai).

Opened their 11th, 12th & 13th store in Mumbai, Gurgaon & Kolkata.

Opened their 17th, 18th, 19th & 20th store.

Launched MAC & Homestop – their home store.

Opened their 14th, 15th & 16th store in Mumbai, Kolkata & Bangalore.

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History and Evolution 2006 2007 2008 2009 2010 2011 2012

Opened 21st & 22nd stores. Launched Mothercare in India. Bought 45% of Timezone India.

Signed a 50:50 joint venture with Nuance group for Airport retailing.Signed an MOU with Home retail group of UK for E-tailing.

Awarded emerging market retailer of the year by the World Retail Congress.

Pioneered Mascot licensing (Vodafone for their popular mascot Zoozoo).

Expanded footprints by adding new cities like Bhopal, Amritsar & Aurangabad.Upped its stake in Hypercity Retail (India) Limited to 51%.

Now they have expanded to 41 stores in 18 cities.

Planning to expand to 25 cities.

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It was incorporated on June 16,1997 as a private limited company.

In December 2000, it was converted into a public limited company.

It is promoted by K. Raheja group. Private Labels at Shoppers Stop

are Austin Reed, Mario Zegnoti, Life, Stop, Kashish, Haute Curry, I jeanswear, Insense, Eliza Donatein

Corporate Information

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Organizational StructureName Job Title Board

Mr. Chandru L. Raheja

Chairman and Non-Executive Director

Non Executive Board

Mr. Ravi C. Raheja & Mr. Neel C. Raheja

Non-Executive Director Non Executive Board

Mr. B. S. Nagesh Customer Care Associate, Vice Chairman and Non-Executive Director

Executive Board

Mr. Gulu L. Mirchandani

Independent and Non-Executive Director

Non Executive Board

Mr. Shahzaad Dalal Independent and Non-Executive Director

Non Executive Board

Prof. Nitin J. Sanghavi

Independent and Non-Executive Director

Non Executive Board

Mr. Deepak Ghaisas

Independent and Non-Executive Director

Non Executive Board

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Fashion & Home Retailing: Shoppers Stop – Currently has 41 stores with a presence in 19 cities HomeStop Stores (Home Décor) – Currently has 5 stores with a presence in 4 cities

Specialty Retailing: Mothercare (Maternity, Infant Care) – The exclusive franchise agreement for departmental

stores with Mothercare Plc UK. Currently there are 32 stores of Mothercare (including 7 standalone stores) with a presence in 11 cities

Crossword (Book stores) – Currently it has 76 stores M.A.C (Cosmetics) – The retail agreement with Estee Lauder to open M.A.C stores. Currently

has 20 stores with a presence in Mumbai, Bengaluru, Delhi, Amritsar, Chennai, Hyderabad, Pune, Kolkata and Ludhiana

Clinique (Cosmetics) – Currently has 10 stores ( including 2 standalone) in Mumbai, Bengaluru, Delhi, Kolkata and Hyderabad

Estee Lauder - Currently has 5 stores (including 2 shop-in-shops), one each in Bengaluru, Mumbai and Delhi

Mixed Retailing: HyperCity – Currently has 10 stores, one store each in Amritsar, Bhopal, Jaipur, Navi Mumbai

and Hyderabad and 2 stores each in Mumbai and Bengaluru, spread over an area of 10.7 lakh sq ft.

Other Initiatives: Airport Retailing – Currently has 1 store in Hyderabad domestic airport and 2 stores in

Bengaluru domestic airport. 4 duty free stores are run by the JV Company in the international airport at Bengaluru

TimeZone Entertainment – Currently has 14 doors.

Product Mix

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Division Apparel Fragrance & Beauty

Home & Travel Apparel

Departments

Men

Women

Kids

Perfumes

Skincare

Cosmetics

Home

Travel

Sales & Discount

Gift Voucher

FormalsCasuals

Accessories

FormalsCasuals

AccessoriesBoysGirlsToys

Category

MenWomenUnisex

Oily SkinNormal Skin

Dry SkinFor EyesFor NailsFor Face

KitchenBedBathLuggage

Laptop BagTravel

Accessories

MenWomenHomeKids

UnisexMembers

WatchesPens

HandbagJewelry

Ties

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Sub-Category

Half SleeveFull Sleeve

Half SleeveFull Sleeve

Half SleeveFull Sleeve

Brands

LeeWrangler

Zodiac

BibaStopDIY

AdidasLee

Styles/Fashion

Polo T-Shirt2 ButtonCufflink

Short KurtiLong Kurti

Jeans

ShortsT-Shirt

Options/SKUs

Different SizeDifferent Color

Price Range

Different SizeDifferent Color

Price Range

Different SizeDifferent Color

Price Range

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Women’s wear at Shopper’s Stop

Women's Wear

Formal

Brands

Van Heusen

Allen Solly

Wills Lifestyle

Private Labels

Austin Reed

Eliza Donatein

Stop

Casual

Brands

Mango

Fcuk

Levis

Latin Quaters

Pepe Jeans

Private Labels

Stop

Life

I jeanswear

Ethnic

Brands

BIBA

W

Isvarah

Private Labels

Kashish

Haute Curry

Stop

Lingerie

Brands

Triumph

Lovable

Enamor

Private Labels

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Women’s Wear – Price Line

CasualFormal

500

1000

1500

0

Ethnic

Van HeusenW

2000

2500

BIBA

Austin Reed

Allen Solly Life

Forever New

Stop

UCB

Mango

Stop

Tommy HilfigerKashish

3000

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Men’s Wear at Shopper’s Stop

Men's Wear

Formal

Brands

Arrow

Zodiac

Van Heusen

Jack & Jones

Louis Philippe

Indian Terrain

Private Labels

Vettorio Fratini

Austin Reed

Stop

Casual

Brands

Levis

Esprit

Tommy Hilfiger

Fcuk

Calvin Klein

Spykar Jeans

Private Labels

Mario Zegnoti

I jeanswear

Life

Ethnic

Brands

Manyavar

Private Labels

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Men’s wear – Price Line

CasualFormal

500

1000

1500

0

Ethnic

Van Heusen

2000

2500

Austin Reed Vettorio

Fratini

Allen Solly Life

Stop

UCB

Calvin Klein

Stop

Tommy Hilfiger

Jack & Jones

Arrow

3000

3500

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Target Customers are Upper middle class and upper class.

Customer’s profile age falls between the age group of 16 to 40 years.

SHOPPERS STOP have segmented their respective markets in terms of Age and Sex (e.g. Clothing for Men, Women and Kids)

Segmenting by Income and Expenditure patterns.

Shopper stop also Target Non Resident Indian as well as foreign Nationals.

Target Customers

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Highlights of Q4FY10 Gross Retail Turnover at Rs. 422.9 crs; jump of 20 % Net profit at Rs. 16.4 crs; increase of 197 % EBITDA at Rs. 27.1 crs, up, by 100% Like-to-like growth at 16%; compared to 3%

degrowth last year. Shoppers Stop launched it’s first store in Punjab –

Amritsar and third store in Bengaluru; taking the total to 30 stores across India

Launched 3 new Crossword stores

Turnover

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Highlights of Q1FY11 Gross Retail Turnover at Rs.385.7 Crores; jump of

25% Net profit at Rs. 10 Crores; increase of 297 % Like-to-like sales growth at 21% EBIDTA at Rs. 25 Crores, up, by 65% Acquires 51% stake in HyperCity Retail (India) Ltd Adds 0.97 lakhs members to First Citizen club Total stores added this quarter: 4 Clinique store (SIS)

during the quarter.

Turnover

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Year 2006-07 2007-08 2008-09 2009-10 2010-11No. of stores 60 73 72 93 97Income (Rs. In lakhs) 87406 116024 134428 150236 184165Expenditures 79532 109522 129504 138885 168954Profit After Tax 2620 697 6372 5023 7518

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Financial Highlights

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SWOT Analysis

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Mission: “To be a global retailer in India and maintain its No.1 position in the Indian market in the Department Store category.”

Vision: “Nothing but the best” .

Values that help us in achieving our mission and vision: We will not take what is not ours. The obligation to dissent (against a viewpoint that is not

acceptable). We will have an environment conducive to openness. We will believe in innovation. We will have an environment conducive to development. We will have the willingness to apologize and forgive. We will respect our customers' rights. We will create an environment of trust. We shall be fair. We will be socially responsible.

Mission & Vision

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Their main objective is to make their customers satisfied and then earn profit.

To retail their existing customers & gain new customers.

65 % of their customers are their first citizen customers.

Shoppers‘ Stop is the only retailer from India to become a member of the prestigious Intercontinental Group of Departmental Stores (IGDS).

Objectives & Policy

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It is a national brand. It provides leading international and national brands in

clothing for men, women and kids, accessories, cosmetics, footwear and home furnishing.

It has a wide presence in India. Shoppers Stop operates in the premium category in the

smaller towns and, additionally, in the bridge-to-luxury segment in the more developed cities.

The targeted consumers for these brands, are those with their higher disposable incomes.

The stores of Shopper’s Stop all located in almost every city and state of the country, which includes Gurgaon Kolkata, Pune, Jaipur, Hyderabad, Bangalore, Delhi and Mumbai.

Status of Brand & Its Presence

Source: The Hindu Business Line, dated 14th May 2011

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It will invest up to Rs. 400 crore to expand presence in India by opening new stores across formats in the next four years.

Plans to expand presence to 25 cities from the current 19 cities in the next three years.

Rs. 200 crore would be invested on about 25 new Shoppers Stop departmental stores in existing as well as new cities across India and the remaining would be invested on other formats.

They might see a lot of foreign investment coming in in segments like home, electronics and hypermarket once the FDI conditions are clear.

Source: Press Trust of India / Mumbai July 28, 2011, 11:54 IST

Future Expansion Plans

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CSR Areas1. Children2. Community Welfare3. Healthcare4. Senior Citizens

Main CSR Activities1. Community Welfare2. Healthcare3. Senior Citizens

Blood Donation Drive “Think Green”: Planting of Neem Trees Foundation Day Celebration SKD Exchange Offer Recycle By Life Back To Earth

CSR Activities

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Competitors Space (Square Feet)

No. of stores

Gross Turnover

Net profit

Shopper’s Stop

1.9 Million 104 Rs.1570 crores

Rs. 16.4 crore

Pantaloon Retail

10 million sq. ft.

1500 Rs. 4000 crores

Rs. 141.54 crore

Reliance Retail

4 million sq. ft.

950 Rs. 330 crores

Rs. 18.22 crore

Aditya Birla Retail

2 million sq. ft.

700 Rs. 300 crores

Rs. 17.7 crore

Competition in terms of Area

Pantaloon started its operations of retailing in 2001. Both Reliance and Aditya Birla started operations in 2006. Thus Shoppers Stop is considered to be a slow mover compared to

competitors.

Source: Business Standard, September 10, 2011

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Name Last Price Market Cap.

(Rs. cr.)

SalesTurnover

Net Profit Total Assets

Pantaloon Retail 288.50 6,445.65 4,097.43 76.67 4,142.47

Shoppers Stop 386.40 3,176.65 1,712.00 75.18 746.82

Trent 1,134.15 2,779.61 716.71 43.04 1,356.96Kewal Kiran 836.80 1,031.36 236.62 46.23 190.97REI Six Ten 27.10 398.64 716.50 29.04 108.51Provogue 31.40 359.08 565.39 33.41 918.99Brandhouse 16.05 86.03 737.45 20.12 312.41Koutons Retail 21.70 66.30 535.55 -314.56 1,164.62

Cantabil Retail 26.75 43.68 186.43 12.37 92.64

Pantaloon (Differential Voting Rights)

190.45 0.00 - - -

Competitors in terms of Retailing

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Abhishek Sinha