Retail management

Assignment – 2
 Introduction:
An Indian retail sector major Shoppers Stop Limited (SS) opened its door in the year 1991,
the foundation was made by K Raheja Corp and it was incorporated on 16th June 1997 as a
private limited company. It started operations with the first store in suburban Mumbai and
is now a multi-channel retailer with 24 large format department stores and online presence.
From its inception, Shoppers Stop has progressed from being a single brand shop to
becoming a Fashion & Lifestyle store for the family. Today, Shoppers Stop is a household
name, known for its superior quality products, services and above all, for providing a
complete shopping experience. It provides retail range of branded and own label apparel,
footwear, perfumes, cosmetics, jewellery, leather products and accessories, home products,
books, music and toys, operates in the cities of Mumbai, Delhi, Kolkata, Chennai,
Bangalore, Hyderabad, Pune, Jaipur and Gurgaon.The first store was opened in the year
1991 at Andheri, a suburb in Mumbai, only with Menswear and the Ladieswear was
introduced in the year 1992. After a year, the company added Children & non apparels to
its list in 1993. Loyalty Program titled First Citizen was launched by SS in the year 1994
and in 1995; the company had opened the second store in Bangalore. The status of the
company was changed to deemed public limited company in December of the same
incorporation year 1997. SS had opened its third store in Hyderabad during the year 1998
and implemented JDA Retail ERP (a global leader in retail ERP packages) in the year
1999. Also during the same year of 1999, the companys fourth & fifth stores in Jaipur &
Delhi were opened. During the year 2000, the company opened its sixth & seventh store at
Chennai & Chembur, Mumbai and also in the same year 2000, SS had acquired
Crossword, Indias leading retail book chain. The eight & ninth store in Pune & Bandra and
tenth store in Kandivli, Mumbai were opened by the company in 2001 and 2002
respectively. SSs status was further converted to a full-fledged public limited company on
6th October 2003. The eleventh, twelfth & thirteenth store in Mulund (Mumbai), Gurgaon
and Kolkata were unlocked by the company in the 2003 itself. During the year 2004, SS
had opened its fourteen, fifteen & sixteenth store in Malad - Mumbai, Kolkata &
Bangalore. In 2005, SS had opened its seventeen, eighteen, nineteen & twentieth store in
Pune, Juhu - Mumbai, Bangalore & Ghaziabad. Also in the same year of 2005, the
company had launched M.A.C & Homestop, a home store. Mothercare in India and F & B
outlets Brio & Desi Cafe were launched by the company during the period of 2006. SS
made its release of twenty first (Mumbai) and twenty second store in Lucknow in the
identical year of 2006 and also acquired 45% of Timezone India. The Company had
opened its 22nd Store at Noida in May 2007. During the same year 2007, the company had
signed Joint Venture (JV) (50:50) with the Nuance Group for Airport Retailing and also
inked the Memorandum of Understanding (MoU) with the Home Retail Group of UK to
enter into a franchise arrangement for the Argos formats of catalogue & internet retailing.
In March 2008, SS kicks its operation Kolkata, aggregating the 24 shops. The Company
honored with Emerging Market Retailer of the Year 2008 in April of the year 2008. In
same April of the same year 2008, SS had unveiled its new logo and introduced the new
expression of the brand. SS bagged Department Store of the Year award in November of
the year 2008 for its reputation in the industry.

Awards:

Shoppers Stop Ltd has been awarded "the Hall of Fame" and won "the Emerging Market
Retailer of the Year Award", by the World Retail Congress at Barcelona, in April 2008.
Chandru Raheja was succeeded by BS Nagesh Shoppers Stop is listed on
the BSE and National Stock Exchange of India. As of 2013, Shoppers Stop had 83 stores in
India

Latest updates:

Shoppers Stop Standalone September 2018 Net Sales at Rs 864.53 crore, up 3.22% Q-o-Q

Reported Standalone quarterly numbers for Shoppers Stop are:

Net Sales at Rs 864.53 crore in September 2018 up 3.22% from Rs. 837.58 crore in
September 2017.

Quarterly Net Profit at Rs. 13.21 crore in September 2018 up 160.55% from Rs. 21.81 crore
in September 2017.

EBITDA stands at Rs. 56.61 crore in September 2018 down 0.23% from Rs. 56.74 crore in
September 2017.

Shoppers Stop EPS has increased to Rs. 1.50 in September 2018 from Rs. 2.61 in September
2017.
Shoppers Stop shares closed at 469.85 on October 26, 2018 (NSE) and has given -17.61%
returns over the last 6 months and -9.15% over the last 12 months.

“We are encouraged by the festive sales during Durga Puja in the east which witnessed a
strong growth ranging from 18% to 20% during the season. Overall, our revenues have
increased by a healthy 7.4% adjusted (IND AS 115 and GST) in Q2FY19 as compared to
Q2FY18 despite Diwali and Puja shifting by a month this year. On a like-to-like basis for the
quarter, our sales have increased by 3.6% riding on our continuous efforts to provide
immersive and seamless shopping experiences across in-store and online platforms,"
said Rajiv Suri, Customer Care Associate, Managing Director & Chief Executive Officer of
ShoppersStop.

"We have expanded our “Personal Shopper at Home” program to across 9 cities which is
further helping us to serve our customers with delightful shopping experiences. Our
innovative Personal Shoppers services currently contribute 13% of the sales revenue.
Additionally, ladies ethnic wear has performed well and is expected to grow further owing to
the upcoming festive season,” Suri said further.

The company added 1 store each of M.A.C, Clinique and Bobby Brown taking the total count
of beauty stores to 108 as on September 30, 2018. With a view to easing shopping and
making Shoppers Stop’s fashion collections available to maximum customers through its
online platforms, the company has scaled its Click & Collect service to over 50+ stores and
expanded the fulfillment centre base to 37 stores and 4 warehouses.

Currently, Shoppers Stop has a footprint of 83 large stores spread across 38 cities in the
country along with an e-commerce website, m-site and mobile application. Shoppers Stop
also operates 12 HomeStop and 108 specialty beauty stores along with 84 Crossword
Bookstores Ltd (a subsidiary of SSL) in more than 4.4 mn sq. ft. the area in the country.