Shoppers Stop Report on On job training

8/12/2019 Shoppers Stop Report on On job training

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Report on OJT done with Shoppers Stop

with an essence of VM

Udit Bhatnagar

PGDM RM2013-15

Roll number 13RM956


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Human Resources

The Company continued to create a productive, learning and caring environment by implementing robust andcomprehensive HR processes and taking new initiatives to further align its Human Resource policies to meetthe growing needs of its business. People development continues to be a key focus area in the Company.Special designed training modules for the frontline employees are being delivered from time to time to meet the

training needs of the employees. Human relations remained cordial throughout the year. During the year, yourCompany organised various training programmes.

As on date of the Balance Sheet, the Company had a total of 6,052 Customer Care Associates.

Indian Retail

The Indian retail market is amongst the largest and fastest growing in the world. With a population of over 1.2billion and household size of 4 to 5 on an average, it is not difficult to see the potential attractiveness that thismarket offers. Indianretail business has grown by 16% Compounded Annual Growth Rate (CAGR) over the past two years andexpected to accelerate to 18.8 % over the next few years, according to The India Retail Report 2013. India hasemerged as the fifth most favourable destination for consumption driven by Choice instead of need will grow

significantly.Modern Retail - TodayModern retail has been in existence for some time now. In India, modern retail constitutes 7.8 % of the total retailmarket. Accordingto The India Retail Report findings, modern retail in India is growing at a rapid rate of 26.8% CAGR and isexpected to grow even fasterby 2015. By 2015 the share of modern retail in India is expected to rise to more than 10 % of total retail in India.With the youngdemographics that India is blessed with, it can be assumed that modern retail will be trendy, fashionable, indemand and buzzing withhives of promotion and opportunities. With an increasing number of men and women working and beingindependent, disposable incomeis increasing. The easy availability of financial instruments is also playing its part in growing the modern retail

space and consumption.Modern retail is expected to mushroom in smaller towns in the next 3 years and also make a foray in to the ruralheartland of India to , which in turn will determine the direction and extent to which penetration in rural towns wouldhappen.With modern trade gaining ground in India, the opportunity for strong and continuous growth is immense. A simplecomparison with otherdeveloped and emerging economies in Asia indicates room for a manifold increase in modern trade density. Witha modest six moderntrade stores per million customers, even matching the pace of countries like Thailand and Indonesia points to aninflection point that is yetto occur. Contrasted with the density of traditional trade outlets, the lower density of modern trade is certainlypoised to change.

Modern Retail - Challenges Ahead

The Indian economic sector, including retail, has weathered an uneven ride. Changes in policies and marketshave caused investors in this market to draw caution and adopt wait-and-watch policies. Rising inflation, evenwhen disposable income has risen, has left a dampening mark on retail sales and consumption. Brands havedecided to ensure an effective presence strategy while speculation markets have dropped. Big malls that wereassured of complete occupancy just a few years back are having to resort to price-leading strategies to woo intenants and consumers.

Retailers in India are struggling to strike a balance between choosing available retail space in desired locationand rentals. The next challenge is that of human capital. With attrition still very high in the industry, humancapital management continues to remain one of the top three agenda points for the retailer. The cost of trainingand retraining staff to replace people who leave, is high specifically for larger retailers who want to maintain aparticular standard in their operations. Skill development, hence, is a critical factor to achieve scale and is anarea which needs investment.


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Risks and Concerns:

Over the next 36 months and the timely execution of this expansion will be critical. The Company has a strongexecution team and we believe it has the capability to execute varied retail formatsexperienced personnel inmodern retail will only increase in the near term and long term. Your Company believes that this problem willpersist until the industry reaches a steady growth phase for the Company. Power cost and service tax is also amatter of concern as they put substantial pressure on profits.the business which are proving to be a very largeburden as there are no modes for the industry to recover or pass on these levies. Delay in the roll out of the GSTregime is also a matter of concern impact on the cash flows and consolidated results of the Company Customer Entry:

Retailers measure entry as footfalls, which is the number of people entering the stores. This is computedthrough manual count in all

stores during trading hours

Conversion Ratio: Conversion is the ratio of the number of transactions (Cash Memo) versus the total customerentry into the stores. Tracking conversionhelps the retailer understand the productivity of his front-end store employees and the attractiveness of themerchandise and services.

Apparel:The Apparel contribution to total sales of the Shoppers Stop Departmental store business was 59.9% in 2012-13 ascompared to 58.7%in 2011-12.Non-Apparel:This category includes Cosmetics, Personal Accessories, Jewellery, Leather goods, Home Wares, Electronics,Books and Music. These lifestyle products have high aspiration value, and as the consuming class increases, therewill be a big surge in the demand for this category.


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Customer Satisfaction:

At Shoppers Stop we strive to provide our customers with the best overall experience of shopping with us. Tomeasure the customerexperience we conduct customer satisfaction surveys to evaluate a range of parameters including merchandiserange and quality, storeenvironment, staff, transaction efficiency, loyalty programme, schemes and promotions to name a few and

undertake improvements invarious areas.We also include select competition stores in our surveys in order to measure experience in our stores as comparedto competition.Overall Customer Satisfaction Index:

November 2007 February 2009 April 2010 June 2011 August 2012

63 81 80 79 80

Loyalty Programme:Company runs the famed First Citizen Loyalty Programme. The First Citizens programmenow has a base of over28.8 lacs customers.During the current year, the First Citizens contributed 71% of the Companys annual sales. The First Citizenprogramme has 3 tiers -Classic Moments (entry level), Silver Edge and Golden Glow. Members fall into the various tiers on the basis of theirspends with us.Shoppers Stop has also taken the First Citizen experience mobile, by updating the exclusive First Citizen Mobileapplication on Blackberry, Android and iPhone platforms.This year, the Company continued with the exclusive promotion for First Citizen members - First Citizens Fiesta.Under this promotion the member earned 3 times the reward points besides lots of other special offers and deals.The promotion was very well received and it helped us further reinforce our strong relationship with this membercommunity.


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Background of storeOutlet situated in:

Ambience Mall ,Vasant Kunj,New Delhi

Stores Faade:


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Mall Location: Anchor

Contact No: +91-11-40870400

Website: www.shoppersstop.com

Email: [email protected]

Hours of OperationMonday, Tuesday, Wednesday, Thursday, Friday: 11:00 am to 09:30 pm

Saturday, Sunday: 11:00 am to 10:00 pm

ppers Stop, India's premier fashion and lifestyle destination is the largest chain of large format department stores inountry. Shoppers Stop has a national presence with 30 stores in 13 cities viz. Mumbai (8 stores), Delhi (3 stores),

ata (3 stores), Bangalore (3 stores), Hyderabad (3 stores), Jaipur (2 stores), Pune (2 stores), Gurgaon, Chennai,ziabad, Lucknow, Noida and Amritsar.

an unparalleled assortment of the leading international and national brands in clothing for men, women, and kids;ssories, fragrances, cosmetics, footwear; home furnishing and decor products, our stores aim to provide shoppers ainternational shopping destination.hoppers Stop emphasis is given to customer convenience with customer friendly signage, alteration desk, customerce desk with gift wrapping service, exclusive First Citizen Members, lounge ,baby changing room,ically challenged trial rooms to name a few.

stores offers a complete and wholesome shopping experience for the family, and has the best available for thoseng for a better lifestyle and fashion experience. All in all, the new store is breathtaking in all its grandeur and housesendiest and most fashionable brands in town.
http://www.shoppersstop.com/mailto:[email protected]?Subject=mail%20from%20Ambience%20Mall,%20Vasant%20Kunj%20websitemailto:[email protected]?Subject=mail%20from%20Ambience%20Mall,%20Vasant%20Kunj%20websitehttp://www.shoppersstop.com/


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nside mall layout of Shoppers stop:

evel 1 mall layout with Shoppers Stop in the extreme right bottom:

vel 0 mall layout with Shoppers Stop in the extreme left bottom:


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Study of present and potential customers:

The present custom er base of Shoppers Stop and multi-brand fashion retailing is upcoming &techsavy.Shoppers Stop situated in Ambience Vasant Kunj is in the type 1 localities of national capital and also isthe destination shopping of high business families, working young professionals and also foreign

citizens as nearby Chanakyapuri is situated which hosts all the foreign embassies.

The present customer base of Shoppers Stop comprise of men and women16 - 35yrs earningRs50000 to 1,00,000 per month, spending Rs1000 - 5000 on formal wear.& experimental in makingpurchases.. Shoppers Stops core customers represent a strong SEC A skew. They fall between the age group of16 years to 35 years, the majority of them being families and young couples with a monthly householdincome above Rs. 20000 and an annual spend of Rs.15000. A large number of Non - Resident Indiansvisit the shop for ethnic clothes in the international environment they are accustomed to.

The potetnt ia l customers India also has 500 million Indians under the age of 25. Young

Indians are friving purchases in moblie phones,fashion,accessories etc.Young Indians haveaccess to more money than before and with this has come independence ,aspirations anda demand for products.


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escription of current situation

Vasant Kunjis a affluent and upmarket residential colony located inSouth West Delhi district

fDelhi,India,on the hills of Aravali, which today has well over 100,000 residents. Most

esidents reside in flats built by DDA. The Vasant Kunj community is considered to be well

ducated and prosperous. Vasant Kunj is home to many intellectuals, prominent businessmen,

elebrities, etc.Shoppers Stop, Vasant Kunj is an apogee of lifestyle distinction, it offers not

nly unprecedented scale in terms of its size but also an experience of unparalleled retail mix

ombined with the entertainment and leisure attractions that has changed the concept ofhopping mall experience.

ertain factors have led to a sizeable proportion of Crossover Shoppers shoppers who flit

etween modern and traditional formats. When the spends of these shoppers are analyzed by

oking at how they claim they split their spending across formats, even a single percentage of

pending transferred to modern retail across meta categories such as packaged foods, home

are and personal care, translates into a quarter of a million dollars that Indias modern retail

ould gain.The implications of these changes and opportunities are clear for marketers who

ant to reenergize theirvstrategies. Merely understanding consumers in a generic manner will

o longer be a complete method of converting insight into marketable opportunity. Developing aorough and ongoing appreciation of the shopper decision journey along the path to purchase

nd all the extrinsic and intrinsic factors influencing it, will be a critical element in the marketing

ix. Mapping the present and prospective shoppers for your brand across various retailing

nvironments will be a necessary precursor to converting demand into sales.

suals of the store

hoppers Stop has unique store design and visual aspect:
http://en.wikipedia.org/wiki/South_West_Delhihttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/South_West_Delhi


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e visual attributes at Shoppers Stop may be seen through following images :

The Visual merchandising is implemented in a manner that it does not clutter the main

purpose i.e. does not comes between a customer and his/her buying intent by not being loud.

The lighting used are items to consider are consistency in store appearance, colors,

assortment of displays and fixtures, and general cleaner merchandising. Mismatched


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hangers, for example, never looks good and is an easy fix. Utilizing the store logo on signage,

labels, shopping bags, and marketing materials create a cohesive look for overall image. Wall

colors need to be examined with other visual elements throughout the store. Does the color

scheme make sense? Sometimes hiring a visual merchandiser with an art background can

help make sense of color choices.

The all too important window display is a complete statement on its own. Windows are

normally the most dramatic of the overall store's visual statement. They can be funny or

dramatic. Windows often feature video art, animation, posters, dramatic lighting, holograms,

or other special effects. There are two distinct window themes, special event windows and

fashion message windows. Special event windows convey the spirit of the holiday season, tie

in a store event or special promotion. Fashion message windows feature the latest fashion

trends and how to coordinate accessories or feature the latest designer collection.

Focal points

In Shoppers Stop focal points were there in all sections i.e. menswear or womenswear,

western wear and in ethnic section as well. Focal points were evenly distributed all round the

store ,with latest apparels that were in shelves or fixtures and were relly matching with each

other with the section.When creating a focal point you need to consider the look you need to

achieve to attract the customer you want. If it is fashion ideally you need to include

mannequins or bust forms. Then support the display with appropriate props.In this instance

the props are oil drumspretty clean ones as this product is not distressed denim.If you have

key brands, make sure their signage is prominentthese brands help sell the product

Focal point in Shoppers Stop

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A focal point attracts customers to an area, supports the product on offer and sells the

outfits.Ideally position centrally on the wall. In this example we used a couple of strips of

wallpaper in the center of the wall to create a backdrop for the display and positioned a

mannequin in front of it. We also used framed car prints at high level. All the supporting

material/props supporting the streamlined, suiting look.

Conclusions

First Citizens: Our First Citizens Club has continued to be one of the main strengths of our

business. In the year gone by the

programme has exceeded the 2.5 million mark in memberships, making it one of the largest

loyalty membership programs in the

country across sectors. The Company continues to believe that its loyalty program is not only

a source of substantial competitive

advantage, but is also a very strong strategic tool. Your Company believes that its First

Citizens will continue to drive its growth by

increased average expenditure in our stores which will be aided by targeted promotional

activities.

Strong focus on Systems & Processes: We continue to invest in our front and back end

processes and systems. The Company

believes that continuous investment in people, process and technology will drive sustainable

and profitable growth for the Company.


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We have in the past year, undertaken a number of new investments in the back end and

continue to upgrade our current information

technology capabilities and processes.

Strong distribution and logistics network and supply chain: We have created a strong

distribution and logistics network, with our four

Distribution Centers covering more than 400,000 square feet handling over 400,000 SKUs

per year, and working 24x7. The Company

believes that the hub and-spoke model followed by it for its distribution network, will stand

it in good stead for the expansion

envisaged in the forthcoming years.

Enhancing our Human capital: We continue to assess our Customer Care Associates

(CCAs) across all levels through assessment

centres for promotion decisions, career planning and succession planning. Individual and

organisational development is the primary

objective of the assessment centre. We also conduct associate satisfaction survey every year

and derive ASI scores, which helps

us in identifying the trust index scores of respect, credibility, fairness, pride with the

organisation. We continue to benchmark our

compensation and benefits through consultants, with the best in the industry to pay our

associates accordingly.

Strong understanding of the real estate business: We 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.

Shopping Experience: 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 to

bank on. Price is not essentially a differentiator for the Company, the shopping experience is.

The Company imparts special training

to its employees to ensure that service is not compromised on. The companys store

positioning in the bridge to luxury segment

clearly sets apart its stores from those of the rest of the industry players.

Management Strength & Corporate Governance: The Company has a professional and w


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Recommendations

eographical reach: Your Company continues to increase its Pan-India footprint and is

pecting to launch into its next expansion phase in the next 36 months. The Companys

ategy to increase the number of departmental stores, and therefore improve city wise

netration in new cities, increase market share in existing cities through additional new stores

those cities, and new stores in Tier-II cities, remains unchanged. During the year, your

mpany achieved its 50 department stores milestone with the opening of department store atngaluru. First citizen membership and Facebook fans also crossed 2.5 million and 2 million

ark respectively of 27.5% and like to like sales growth of 9% for the year.Format diversification

d expansion: Your Company, in its constant endeavor to capture wallet share, has diversified

o multiple formats viz, M.A.C. and Estee Lauder which retails high end cosmetic products,

nique which retails skin care products, Mothercare which retails infant and kids merchandise

d airport retailing, by tying up with The Nuance Group AG of Switzerland. The Company has

o made a successful foray into internet retailing through its e-retailing portal.Preferred partner

foreign players: Your Company believes that by virtue of its presence across all lifestyle

tegories in the departmental format, its strong brand value and its presence in the books and

usic segment, it is best placed to bring in international brands into the country, thereby

riching the product bouquet for its customers and inturn increasing opportunities for product

ersification and profit enhancement.


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Shoppers Stop Report on On job training

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