Retail Analysis: Shoppers Stop

RETAIL ANALYSIS :
Shoppers Stop
INDEX
INDEX
India : Retail Industry Overview
2011
Shoppers Stop: An Overview
History
Store Formats
Strategic Alliance
Type Of Retail Outlets
Location
Approach
Segmentation, Targeting &
Positioning
Merchandising Strategy
Financial Analysis
Loyalty Program
SWOT Analysis
Competitor Analysis
Impact Of 2008 Recession
International Affiliations &
Acquisitions
INDIA : RETAIL INDUSTRY OVERVIEW 2011
INDIA : RETAIL INDUSTRY OVERVIEW 2011
Indian Retail Market Share: 30% of GDP

Share of retail in private consumption:
53.3%
Total retail market : Rs. 1,948,916 cr.
Organized retail market: Rs. 126,680 cr.
(6.5% of total market)
Growth rate of organized retail: 17.39%
YOY
Source: India Retail Report 2011

SHOPPERS STOP: AN OVERVIEW
HEADQUATERS Eureka Towers,9th Floor, B Wing, Mindspace,

Link Road,
Mumbai, Maharashtra-400064
INDUSTRY Retail
TYPE Public Company
STATUS Operating
COMPANY SIZE 8000 employees
NUMBERS OF 49
STORES
2011 REVENUES Rs.439.2 crore
NET PROFIT Rs.11.7 crore
TOTAL RETAIL AREA 3.93 million sq. ft.
FOUNDED 1991
Source: http://corporate.shoppersstop.com/
About SHOPPERS STOP Ltd.
Shoppers Stop Ltd., a pioneer in modern retailing in India, has been promoted by
K Raheja Corp. Group (Chandru L. Raheja Group), one of the leading groups in the
business of real estate development and hotels in the country.
Shoppers Stop Ltd along with its Subsidiary Company Hypercity Retail (India) Ltd
and Joint Venture Companies Timezone Entertainment Pvt. Ltd and Nuance Group
(India) Pvt. Ltd. operates more than 3.93 million sq. Ft. in the country.
Shoppers Stop and its associate companies are involved in retailing through
department stores, specialty stores, entertainment zones and large
hypermarkets.
Management- SHOPPERS STOP Ltd.

Chandru L Raheja Chairman / Chair Person B S Nagesh Vice Chairman
Govind Shrikhande Managing Director Ravi C Raheja Director
Deepak Ghaisas Director Gulu L Director
Mirchandani
Neel C Raheja Director Nitin Sanghavi Director
Shahzaad S Dalal Director Nirvik Singh Director
HISTORY OF SHOPPERS STOP
Retail 1991 1992 1993 1994 1995 1996
Mix/Year
Began the First step
modern towards
Location retail pan-India
revolution in presence.
India with the Launched its
launch of second store
Mens in Bengaluru
ready-to-wear
store
at
Andheri(Mumb
ai)
Launched an
Consumer exclusive
service loyalty
program
titled The
First
Citizens
Club
Offering Added Casuals, Launched
Merchandis expanded Kidswear and Non- STOP the
e to include apparel first in-house
assortment suiting, section(Jewellary, label
boyswear Fragnances,
and ladies Cosmetics and
merchandi Watches) making
se Shoppers Stop
Indias first ever
departmental store
Retail 1997 1998 1999 2000 2001 2002
Mix/Year
Opened third Retail revolution Opened stores at Opened stores Opened store in
store in took roots in Chennai and in Pune and Kandivli
Location Hydrabad North Chembur Bandra (8 th
(Mumbai) (10th
India with the (Mumbai ) and 9 store)
th
store)
launch of stores in (6 & 7 store)
th th
Ansal Plaza(Delhi)
and Jaipur (4th &
5th store)
Launched a
Consumer co-
service branded
credit card for
its loyalty
members in
association
with HSBC
Launched
Prikrama, a
Communicati festival to
on Mix celebrate
Indian
tradition and
culture
Acquired
New Crossword-Indias
Formats leading retail
book chain
Shoppers Stop Sole retailer Implemented JDA


Retail Mix/Year 2003 2004 2005 2006 2007
Stepped into East with the Opened stores Opened stores in Opened
launch of store in in Malad Pune, Juhu stores in
Location Kolkata. (Mumbai), (Mumbai), Mumbai and
Also opened stores in Kolkata and Bangalore and Lucknow
Mulund(Mumbai) and Bangalore Ghaziabad (17 ,th
(21st and
Gurgaon (11 , 12 &
th th
(14 , 15
th th
18 , 19 and 20 )
th th th
22nd )
13 )
th
&16 )th
Created movie
Merchandise merchandise history with
assortment unveiling of the Om
Shanti Om collection
Brand positioning
changed from Feel Celebrated the launch
Communication the experience to with Sharukh Khan,
Mix Shopping. And Deepika Padukone and
beyond Arjun Rampal modelling
the cloths at a fashion
show.
HomeStop- Home Launched Signed a 50:50 JV with
New need specialist Mothercare the Nuance Group for
Formats store launched in in India and Airport Retailing
Bengaluru . F&B outlets Signed an MOU with
Launched MAC. Brio and Home Retail Group of UK
Crossword became Desi Caf. to enter into a franchise
a wholly owned Bought 45% arrangement for the Agro
subsidiary of Timezone formats of catalogue &
India internet retailing
Acquired 19% stake in
Hypercity Retail (India)
Ltd.
Voted as Indias IPO oversubscribed Declared Gold Shield Award for
Accomplishment most favored overall by 17.25 Retailer of excellence in Financial
s
Source: http://corporate.shoppersstop.com/ retail times. the Year at reporting for year 2006 in
Retail Mix/Year 2008 2009 2010 2011
Expanded footprints to Expanded to 49 stores
new cities like Bhopal, across 22 cities
Location Amritsar and
Aurangabad.
Also added stores in
existing cities like
Bengaluru, Mumbai and
Hydrabad taking store
tally to 36 stores across
15 cities
Pioneered mascot
licensing in the
Merchandise categories through
assortment exclusive tie-up for
certain products
with Vodaphone
for their product
brand mascot
Zoozoo
Shoppers stop
repositioned and
Communication reinvented as a
Mix Bridge to luxury
brand with unveiling
of the new logo and
tagline, START
SOMETHING NEW
Increased stake in
New Hypercity Retail (India)
Formats Limited to 51%
Awarded the
Source: http://corporate.shoppersstop.com/ Recognized as Most
SHOPPERS STOP FORMATS
SHOPPERS STOP FORMATS
Shoppers Stop
Consolidated with SSL
Ltd.
Subsidiary Companies JV Companies 2
SS Department Stores Business
30% Sales 2% Sales
68% Sales Contribution
Contribution Contribution
SSL SSL
Stake Stake
51% No of stores: 1 50%
No of stores: 43 (incld. 2 duty paid airport GFA: 0.2 lacs
No of stores: 10 sq ft
stores) GFA: 10.64 lacs sq ft. SSL
GFA: 24.58 lacs sq ft. Sales for 6 months as of Stake
Sales for 6 months as of Sep,2011 : Rs 920 No of stores:14 45%
Sep 2011 : Rs. 369 Cr
Cr Sales for full year as of GFA: 0.97 lacs
Sales for full year as of March, 2011 : Rs sq ft.
March 2011 : Rs 597 Cr
1676 Cr
No of stores: 8 No of stores: 35 SSL
GFA: 1.37 lacs sq ft. GFA: 0.14 lacs sq Stake
ft. 100%
No of stores: 84
Own Stores : 43
GFA: 2.52 lacs sq
No of stores: 7 08 09 : 8.0 lacs ft.
GFA: 0.35 lacs sq ft. visitors
10 11 : 35 lacs
visitors Well diversified
portfolio
to capture the
consumers
Note : wallet share
Above figures as of 30TH September 201
Source: Shoppers Stop Annual Report 2010-11 GFA: Gross Floor Area
STRATEGIC ALLIANCE
STRATEGIC ALLIANCE
Shopper's Stop Ltd. has entered into a non exclusive retail

agreement with world-renowned cosmetics major Estee Lauder
to open M.A.0 Cosmetics stores in India.
Shopper's Stop Ltd. has a 19% stake in Hypercity Retail (India)

Ltd.
Mothercare PLC of UK, the largest specialist retailer for infant

and toddler care, is now in India.
Shopper's Stop Ltd.'s entry into airport retailing is marked by a

joint venture with The Nuance Group AG of Switzerland, the
world's leading airport retailer.
Shopper's Slop Ltd has forayed into the Entertainment sector

by acquiring a 45% stake in Timezone Entertainment Private
Limited which is in the business of setting up & operating Family
Entertainment Centers (FECs). It has 5 outlets in Ahmedabad,
Hyderabad. Kolkata and Mumbai.
Source: Shoppers Stop Annual Report 2010-11
TYPE OF RETAIL OUTLETS
TYPE OF RETAIL OUTLETS

LOCATION
LOCATION
Hom Moth MAC/Est

SS Crosswo e er ee/Clini Hyperci
City Dept. rd Stop care que ty Total
Amritsar 1 1 1 1 4
Bangalor
e 5 9 2 1 4 2 23
Chennai 2 1 1 2 6
Delhi 5 2 1 1 9 18
Gurgaon 1 1
Hyderaba
d 4 5 1 2 1 13
Jaipur 2 1 3
Kolkatta 3 2 5
Lucknow 1 1 1 3
Mumbai 8 19 2 2 11 3 45
Noida 1 1 2
More than 3.93 million sq. ft. area, across 20 cities
Pune 3 1 1 2 7
As on 30th Sep 2011
Ghaziaba
d 1 1
Siliguri
Source: 1 1
NUMBER OF STORES
NUMBER OF STORES
38
36
34
32
30
28
26 17
24
22
Sum of West
20 13
Sum of East
18 Sum of South
9 13 Sum of North
16 8
14 10 7
10
12 7 4
6
10 5
4 5
8 4
3 3 3 4 13
6 2 3 4 11 12
1 2 10
4 1 2 2 2 2
1 2 2 5 6
2 1 1 1 3 3 3 3 4 4
0 1 1 1
Source: Shoppers Stop Annual Reports,

North South
6 6
5
5
4
4
3
3 2
2 1
0
1
West East
12 3.5
3
10
2.5
8 2
1.5
6
1
4 0.5
0
2
In North and West Shoppers Stop is entering new cities while in South it is restricting itself to only 3
cities. In East also it is expanding its market slowly.

Store Division: City Store Division: Zone
Wise Wise
18 17
12
16
10 14
8 12 11
10
10
6
8
4 6 5
4
2
2
0 0
East North South West
Store Division: State

16 Wise
14
14
12
10
8 Shoppers Stops main market is
6 5 5 5 North and West. Also in West it
4 is mainly focused in one state
4 3
2 2 and mainly Mumbai city. Also it
2 1 1 1
0 has more number of stores in
metros as compared to non-
metros.

TYPE OF APPROACH
TYPE OF APPROACH
METRO AND TIER 1CITIES

METRO AND TIER 1CITIES
VISION
VISION
TRANSITIONED THE SHOPPERS STOP BRAND FROM
TRANSITIONED THE SHOPPERS STOP BRAND FROM
PREMIUM TO BRIDGE-TO-LUXURY
PREMIUM TO BRIDGE-TO-LUXURY
200
9
200
5
Source:
SEGMENTING
SEGMENTING
A large number
of Non -
Resident Indians
visit the shop for
ethnic clothes in
the international
environment
they are
accustomed to.
Source: Shoppers Stop Investors Presentation

TARGETING
TARGETING
POSITIONING
POSITIONING
PRICING
PRICING
Shoppers stop follows premium pricing strategy that is offering high
quality products at high price.
RETAIL STRATEGY
RETAIL STRATEGY
On an average stores 30000 pieces of different products.

Merchandise sourced from 250 exporters in Delhi,
Mumbai, Bangalore
Centralized buying for all products except cosmetics and
perfumes to avoid sales tax
Carries 63 days of stock.
Source: Shoppers Stop Investors presentation

REVENUE MIX
REVENUE MIX
Category Wise Sales (%)
Category Wise Sales (%)
Category Wise Sales(%)
Non-Apparel Category includes
Apparels Non-Apparels Cosmetics, Personal
Accessories, Jewellery, Leather
goods, Home Ware, Electronics,
38.80% 39.60% 40.50% 41.20%
Books and Music.
These are all lifestyle products
which have high aspiration value.
61.20% 60.40% 59.50% 58.80% An increase in sales of such
products is an indication of an
increasing consuming class.
2007-08 2008-09 2009-10 2010-11
Diversified
portfolio 2010-2011
2004-2005
Apparels
Apparels
35% 41% Non-Apparels
Non-Apparels
59%
65%
Source: Shoppers Stop investors presentation

REVENUE MIX
REVENUE MIX
Division Wise Sales (%)
Division Wise Sales (%)
2010-2011
2004-2005
35% Mens 31%

38% Mens
Ladies 41% Ladies
Children
Children
Non-Apparel
Non-Apparel
7%
19%
20% 9%
Non Apparels consist of Home, Leather, Watches, Jewellery, Electronics and Personal
accessories
Children includes Mother Car
Mens has reduced by a significant percentage while there is a

significant increase in non-apparel. Mr. Govind Shrikhande (MD,
Shopper Stop) says that ladies are buying very highly in
categories like beauty, ladies western wear, leather as well as
home. Hence the company should more on attracting women.

MERCHANDISE MIX
MERCHANDISE MIX
Private Label & Private Brand
Private Label & Private Brand
Private Label Sales mix %
21%
20.1% 19.9% 3.31%
20%
Decreas
19% e
18.1%
18% 17.5%
17%
16%
2007-08 2008-09 2009-10 2010-11
Shoppers stop repositioned and reinvented as a Bridge to luxury brand in year 2008 with unveiling of
the new logo and tagline, START SOMETHING NEW and it started focusing on having more brands for
fashionable families. Mr. Govind Shrikhande (MD, Shopper Stop) says, To make that kind of the
statement positioning, private label automatically has to come down because I am positioning my store
for brand and the kind of brands that I am adding that is Mac, Clinique or Estee Lauders or any one of
those like Tommy or Calvin Klein or French Connection, obviously these are going to take space as well
as share of sales from something else, so there is no point in fighting anyone of these brands with a
private label. So it is our conscious decision to reduce private label . He says that it is related
completely to the positioning. The positioning has an upside as far as long-term potential goes. Shoppers
Stops focus on premium consumers places the company in a unique position as rising per capita
incomes and an emerging middle class (currently a small part of the population) will help to increase
store penetration and sales.
Although private labels generate significantly higher margins compared to branded merchandise, SSL
does not want to bear the associated high inventory and obsolescence risk. In FY10, private labels
Source:
contributed
1. Shoppers 18% ofQuarterly
Stop Limited Shoppers Stops
Results revenues
Conference Call,while international
February 01, 2010 brands contributed over 50%. Hence
2. http://www.fashionunited.in, News: Shoppers Stop to go easy on private labels,
going forward, SSL plans to maintain the share of private label close to 20%. Tuesday, 21
September 2010
3. Live Mint, Shoppers Stop braces for expansion challenge, January 11,2011
INTERNATIONAL BRANDS
INTERNATIONAL BRANDS
Improved Product Mix and Brands Profile to Attract
Aspirational Customers
Jack & Jones, French Connection, CK Jeans,
GAS, ESPRIT, Tommy Hilfiger, Mustang &
Mango in apparel segment
Loccitane, Lancome, MAC, Clinique & Estee
Lauder in cosmetics
CK, Armani & Gucci in sun glasses
Burberry, Nina Ricci, Diesel & Boss in
watches
PRIVATE LABELS
PRIVATE LABELS
SHOPPERS STOP PRIVATE LABELS
Stop- Mens formal/casual/ethnic/womens western/ethnic, kids casual/ethnic
Kashish Mens & womens ethnic
Life- Mens & womens Fashion
Vettorio Fratini- Premium formal& semi formal mens wear
Haute curry- fusion wear for women
Elliza Donatein- corporate womenswear
Ijeans wear- Mens denim
BRAND PORTFOLIO
BRAND PORTFOLIO
APPARELS Jewellery Music Fragrances
Arrow Facet Planet M Christian Dior
Louis Phillipie Carbon Music World Ysl
Park Avenue Parx Sparkles Home Dcor Davidoff
Van Heusen Tanishq FQ Yamini Joop
Zodiac Swaroski Four Seasons Diesel
Stop Gili Viva Lancaster
Caliber Oyzsterbay Welspun Nicos
Blackberries Sarvoski Borosil Jil Sander
Scullers Estelle Corning Ware Calvin Klein
Givo Pedrini Boucheron
Orly Shoes Pyren Police
Lee Lee Cooper J'del Pozo
Levice Red Tape Hair Styling Myrurgia
Pepe Picasso Habbibs Etienne Aiger
Killer Stop Xm
Lee Cooper Life Books
Wrangler Crossword Sunglasses
Spykar Ray Ban
Life
Allen Solly Watches
Provouge Casio
Wills Esprit
Fossil
Titan
PHYSICAL CHARACTERISTICS OF THE STORE
PHYSICAL CHARACTERISTICS OF THE STORE
Reason for such layout: Men are usually serious buyers and also
mostly accompanied by a lady. So womens section is kept before
mens, so as to attract them as they are impulse buyers. On the
first floor the products kept are to attract the customer leading
him/her into the store and also impulse buying.

INTERNATIONAL AFFILIATIONS & ACQUISITIONS
INTERNATIONAL AFFILIATIONS & ACQUISITIONS
STORE SPACE RAMP-UP
STORE SPACE RAMP-UP
Total Gross Floor Area (in '000s)
2500 2287
2047
2000 1822
1602 11.7%
1500 1171 Increa
950 se
Total Gross Floor Area 1000 752
500
0
Year
Shoppers Stop is targeting higher growth by increasing the number of stores and
hence the total gross floor area.
Mr Govind Shrikhande (MD) says that increasing number of stores is strategic
decision by SSL:
1. Home category does not have many big players and hence taking a set
ahead will help to strengthen its position.
2. Increased number for stores actually came through once SSL has turned
around the existing format.
3. All the stores that SSL has signed have been signed along with either the
Shopper Stop being anchor in the same mall or another anchor where either
HyperCITY is the anchor or SSL believes very strongly in that particular mall.
Source: Shoppers Stop Annual Report, 2010-11 Shoppers Stop Earnings Call
CUSTOMER ENTRY
CUSTOMER ENTRY
35
30.9
30
24.9 32%
25 22.8 23.3
19.9 Increase
20
15
Customer Entry (in Mn.)
10
5
0
Year
Customer entry is the number of people entering the store (footfall).

In year 2008-09 there is a decrease in footfall due to mainly two reasons:
1. Competition in catchment area: One of our biggest stores is Malad in Inorbit Mall and that is
on the link road, but biggest competition that has emerged is Oberoi Mall which is a five
minute ride from Inorbit Mall and Inorbit Malls entry has dropped by more than 35% because
of opening of Oberoi. The same thing has happened in Saket, Delhi versus Ansal Plaza.
Shoppers Stop opened three more additional stores vis--vis Ansal Plaza, which is right there
in the center. Hence the entry degrowth is due to cannibalization of customer entry by
competition or by Shoppers Stop own stores.
2. Due to recession window shopping went down and only serious shoppers were coming in, so
only the classical shoppers entering the store.
In 2010-2011 there is a good increase in customer entry because of new store openings in
smaller cities like Aurangabad, Bhopal, Amritsar which drove it up by more than 50%.
Source: Shoppers Stop Annual Report 2010-11,Shopper's Stop Earnings Call
CONVERSION RATIO
CONVERSION RATIO
29%
28%
28%
27% 27%
27%
26%
25%
25%
24% 3%
Conversion Ratio(%) 24% Decre
23% ase
22%
21%
Year
Conversion ratio is the number of transactions versus the total customer entry
into the store.
During recession (2008) there was an increase in conversion ratio as the customer
entry into the store reduced and only serious shoppers were coming in, so only the
classical shoppers entering the store more and more and shopping more and more.
In 2010-11 there is a decrease in conversion ratio due to heavy increase in customer
entry. This is due to entry of Shoppers stop into new cities where it entered for the
first time. When a brand like Shopper Stop enters a small city for the first time, there
is always a lot of aura around it and so lot of people want to come and see it and
that is why the conversion has degrown slightly.
Source: Shoppers Stop Annual Report 2010-11, Shoppers Stop Earnings Call
SALES
SALES
SALES (LIKE-TO-LIKE
GROWTH %)
(DEPARTMENTAL25 SALES PER SQUARE FEET (in Rs.)
STORES) 21
20 8800 8671 7
17 8518
8600 %
15 14 8400 8218
82007973
7955
Sales(like-to-like growth %)
10 8000
Sales per square feet(in Rs.) 7800
5 4 7600
1 7400
0
Year
Year
Gross sales both at chain level and for like-to-like stores showed an
improvement
as compared to last year. The growth in gross retail turnover of Shoppers
Stop
departmental store business is 23%.
Post recession (2008) there was a significant decrease in customer entry
and sales and hence sales per square feet. In 2009-10 although there was a
marginal increase in sales but due to addition of significant number of new
stores, the sales per square feet remained low.
While in 2010-11 also opening of new stores continued and hence the
Source: Shoppers Stop Annual Report, 2010-11 Shoppers Stop Earnings Call
AVERAGE SELLING PRICE (ASP)
AVERAGE SELLING PRICE (ASP)
ASP (Like-to-Like)
Departmental Stores
1000
950 913
900 856 6.6%
850 821 Increa
800 759 se
Average Selling Price (Rs.)
750704
700
650
600
2006-07 2007-08 2008-09 2009-10 2010-11
Year
Average Selling Price is the Gross Retail Sales divided by the

number of units sold.
Tracking ASP helps the retailer to align the offerings as per the
customer segment as well as improve productivity of floor space
As the cotton prices had increased in year 2010-11, apparel prices
went up and so the ASP.
High price increase also directly impacted volumes to some extent.
TRANSACTION SIZE
TRANSACTION SIZE
Transaction size (Rs.)

Departmental Store
2500 2207
2029
2000 1843
1713 9%
1562
1500 Increa
Transaction Size (Rs.) se
1000
500
0
2006-07 2007-08 2008-09 2009-10 2010-11
Year
Transaction Size= Total Sales/Number of cash memos

Transaction size represents the amount spent be each customer on
his buying.
There is a close to 9% increase in transaction size in year 2010-11
over last year.
Increased transaction size indicates an increased ticket size for the
company.
Source: Shoppers Stop Annual Report 2010-11 ,Shoppers Stop Earnings Call
LOYALTY PROGRAM
LOYALTY PROGRAM
The First Citizen

Shoppers Stops customer loyalty program is called The First
Citizen. The program offers its members an opportunity to
collect points and avail of innumerable special benefits.
Currently, Shoppers Stop has a database of over 2.5 lakh
members who contribute to nearly 75% of the total sales of
Shoppers Stop.

LOYALTY PROGRAM
LOYALTY PROGRAM
First Citizen Members (in '000)
2500
Despite a 25% increase in
2017
2000 25 First Citizen members over
1611
% last year, their contribution to
1500 1277
1013
total sales has reduced by
1000 2%.
500
This means that the company
need to relook at the
0
FY08 FY09 FY10 FY11
efficiency of its loyalty
program.
First Citizen Contribution to Total Sales %

76% 75%
74% 73%
72% 2%
72%
70%
68%
66% 65%
64%
62%
60%
FY08 FY09 FY10 FY11

CUSTOMER SATISFICATION INDEX (CSI)
CUSTOMER SATISFICATION INDEX (CSI)
CSI
85 81 80
80
75
70
65 63 63
60
60
55
50
38718 38930 39387 39845 40269
Customer satisfaction index is

calculated based on the There was a significant
following parameters: increase in customer
Merchandising Range and Quality satisfaction from year 2007 to
Store Environment year 2009, although there is a
Staff small decrease in customer
Transaction Efficiency satisfaction in year 2010 from
Loyalty Programme year 2009.
Schemes This may be due to increased
Promotions choices offered to the
Customer experience in Shoppers customers by other stores and
Stop wrt the competitor stores hence increasing expectations
Source: Shoppers Stop Annual Report 2010-11 of the customer
PRODUCTIVITY/OPERATING EFFICIENCY
PRODUCTIVITY/OPERATING EFFICIENCY
GMROI
(Gross Margin Return on Inventory) The reduction in inventory per sq. ft. has
8 5.5 6.03 resulted in improved gross margin return
6 3.62 3.29
9.6 on inventory investment (GMROI) for the
42.75
GMROI (Rs. Inventory) 2 % company, which increased to 6.03% in
0 FY10 (from 2.75% in FY06).
The company has also benefited from the
continued use of the concessionaire
Year model helping it to reduce employees on
GMROF its payroll. Consequently, SSLs gross
GMROF(Gross
(Rs. perMargin Return
unit of retail on Floor
space) space) margin return on labour (GMROL) has
2771
2735 4% increased from 1032609/employee in
2800 2608
2520
2600 2471 FY06
In lasttotwo
1719600/employee in FY10.
years GMROF, GMROI, and
2400 GMROL all three are slightly down
2200
2006-07 because of the addition of new store
Year space. But on a comparable like-to-like,
all three have shown a very positive
GMROL trend.
(Gross Margin Return on Labor)
In year of recession (2008) there was a
2,000,000 1,719,600
1,649,991 decline in GMROF because of reduced
1,270,014
4.2 purchase by the customer. However the
1,500,000 1,198,593
1,032,609 %
1,000,000 new positioning of bridge to luxury in
GMROL (Rs. per employee) 500,000 year 2008 increased the average cash
0
per customer and therefore, increased
the average GMROF
Year
SWOT ANALYSIS
SWOT ANALYSIS
Strength Weaknes
s covering
4 warehouses, s
Pressure of increasing
more than 3,50,000 sq. ft
leasing rentals of Malls.
covering more than 4,00,000 Slowing expansion due to
SKUs working 24*7
dependence on real estate
2 million Loyalty Card
developer for completing
holders, First Citizen, largest
projects during slowdown.
in any format.
Endeavor to make Shopping
Experience the differentiator.
Opportunities Threa
Preferred partner for t
Economic slowdown
international brands in various affecting the purchasing
categories due to diversified power of target consumer.
presence. Rivalry amongst the
Expansion in different established players and
formats and varied locations threat of new entrants as
across India. well.
COMPETITOR ANALYSIS
COMPETITOR ANALYSIS
WORKING CAPITAL CYCLE

250
200
150
Figures in Days 100
50
0
2008 2009 2010
-50
Negative capital of SSL shows that the

company is able to pay its creditors in
advance
Source: Shoppers Stop Annul report , http://www.indiaretailing.com/

COMPETITOR ANALYSIS
COMPETITOR ANALYSIS
CASH FLOW FROM OPERATIONS

200
100
0
2008 2009 2010
-100
Figures in Rs. Crores -200
-300
-400
-500
-600
Net Cash Flows from operating activities (indirect

method); annual consolidated
Source: Shoppers Stop Annul report, http://www.indiaretailing.com/

COMPETITOR ANALYSIS
COMPETITOR ANALYSIS
NET SALES
12000
10000
8000
Figures in Rs. Crores 6000
4000
2000
0
Shoppers Stop Lifestyle Pantaloon Trent Westside
NOTE: Pantaloons retail follows a July-

June year
Source: Shoppers Stop Annul report , http://www.indiaretailing.com/

IMPACT OF 2008 RECESSION
IMPACT OF 2008 RECESSION
Then SSL was badly hit by global recession in 2008-09 when the
buyer sentiment dipped, and, it posted losses of Rs 65 crores.
Consumers downgraded purchases, which affected SSLs profits
more than its rivals who catered mostly to comparatively lower-
income groups.
The operating costs of SSL fell from Rs 400 per sq. ft. in 2008 to Rs
100 per sq. ft. in 2010-11. The company has since reworked the
business model. It has control over its working capital expenses and
is low on debt.
Till 2008 2009
the buy-out model of sourcing Onwards
the consignment model of sourcing
SSL earlier worked on the buy- In 2009, SSL introduced the

out model of sourcing consignment model, where
merchandise was bought from vendors manage inventory, while
brand owners at factory price SSL picks up only those items
and SSL solely managed the that sell in the store. Nearly 80
inventory. This meant that it was per cent of the revenues now
stuck with unwanted stock and come from the consignment
incurred huge inventory costs model.
when sales fell also a big
reason behind recession taking
such a toll on SSL
Source: http://www.indiaretailing.com/
HyperCITY: AN OVERVIEW
ADDRESS Hypercity Retail (India) Ltd.

Paradigm, A-Wing, 1st Floor, Mindspace,
Malad Link Road, Malad (West), Mumbai 400064.
INDUSTRY Retail
SSL Stake 51%
STATUS Operating
NUMBERS OF 10
STORES
SALES FOR 6 Rs. 369 cr
MONTHS
(as of Sep 2011)
SALES FOR FULL Rs 597 cr
YEAR
(as of March 2011)
GFA 10.64 Lakh sq. ft.
OWNED In 2006

About HyperCITY
Hypercity Retail (India) Ltd. is part of the K. Raheja Corp. Group, a
leader in
the Indian retail sector
HyperCITY provides a truly international shopping experience, where
customers can shop in comfort in a large, modern, & exciting
environment. It offers a wide and contemporary range of innovative
products, sourced from both local and international markets.
The product range covers: Foods, Homeware, Home Entertainment, Hi-
Tech, Appliances, Furniture, Sports, Toys & Fashion.
KEY TEAM- HyperCITY
Mr. Mark Chief Executive Officer Veneeth Business Head -
Ashman Purushotam Technology
an
Ashutosh Head - Buying & Simon Chief of
Chakradeo Merchandising Hooper Operations
Aparna Business Head - HR

Ranadive
VISION
VISION
Tagline: Big store. Big savings.

Total Retail space 10.7 lacs sq. ft. with 10 stores operating in 7
cities
(No data available on the 2 stores opened recently in the
month of Dec11)
Number of Stores
18
15
12
9
7
3
1 1
2007 2008 2009 2010 2011 2012E 2013E 2014E
Cluster based growth strategy, with Core and Mid

sized stores
Core size to be in 7585 K sq. ft. to drive
assortment, differentiation and profitability
Mid size format of 50-55 K sq. ft. for penetration
A strong own brand portfolio
Business Model
Food General Fashion
Merchandi
se
Private label; 21%
Branded; 79%
Department Mix % Key Driver

Food & Groceries 58-62% Footfall driver
General Merchandise 30-34 % Value & Margin driver
[Home, Furniture, CDIT]
Apparels & Jewellery 7-9% Fashion, Value & Margin
Driver

HyperCITY: POSITIONING & PRODUCT STRATEGY
HyperCITY: POSITIONING & PRODUCT STRATEGY
Large Footfalls attracted Due to the Widest Product Offering by HyperCity
in India
Positioning Product Offering
Target customers: 18-45
years with Income -20,000+
& Discerning, Urban, Upscale
with High Disposable Income
Other In-store attractions

Caf, Laundry, Wine, Saloon,
SPA
Widest product range on

offer in a hypermarket in
India, 50K SKUs
Awarded the 100 Must Visit

Retail Destinations for year
2007-08 around the world
International Award for

Corporate Achievement to
Average
Recognize Qualityfootfalls
& per month: 1.3 Mn, indicating strong
HyperCITY: BACK END OPERATIONS
HyperCITY: BACK END OPERATIONS
Best in Class Back End Operations to Support Vibrant

Front End
Supply Chain and SystemsBack end operations and ITBest Practices and Policy
Operates multi channel Reliable Inventory Majority of product

supply chain for various Merchandize written off on
product categories Management System completion of 12
months
Imports account for 20 Dynamic Auto-
% of General replenishment system, Quarterly cycle ,
Merchandise enabling consistent high enabling reliable
availability of stocks inventory and
All DC operations on Shrinkage monitoring
Wireless mobile devices E-Payment for 98%
transactions Performance Linked
Furniture and CDIT Reward Scheme &
products are home ESOP
delivered
With support
from best in
class
partners
HyperCITY: STORE STRATEGY
HyperCITY: STORE STRATEGY
Among apparels HyperCity has 62

and per cent of its
accessories, sales revenue
HyperCitys coming from food
stocks are and grocery and
mainly private 8 per cent from
label products apparels
& also
introduced
some brands
like Gini and
Jony, Puma and
Lotto in
At present, HyperCity stores are 80,000 to
HyperCity.
120,000 sq. ft. in size and the new ones will be
between 50,000 and 70,000 sq. ft. This will save
on the rentals.
COMPANY INFORMATION
COMPANY INFORMATION
As a place and space for people who seek information,

knowledge or just the pleasure of reading
Established on 15th October 1992
2000: Shoppers Stop acquired Crossword
2005: Crossword became wholly owned subsidiary of Crossword
Crossword, withEighty threestores, across Ahmedabad,

Aurangabad, Amritsar, Bhopal, Bengalooru, Chennai,Delhi,
Durgapur,Hyderabad, Indore,Jaipur, Kolkata, Kota,
Lucknow,Mumbai, Nagpur, Nasik, Navi Mumbai,Pune, Thane,
Udaipur, Vadodara, Vapi& Vijaywada spread across the gross floor
area of nearly 2.52 lacs sq ft
STORE OPERATIONS
STORE OPERATIONS
Works on Franchisee model
Primarily by Self Service
Customers can browse all they want without making a purchase
Help is available when needed.
Crossword strives to serve all age groups.
Payment through cash and credit card presented at billing

counter.
No Credit Sales
CATEGORIES & ASSORTMENT
CATEGORIES & ASSORTMENT
Books Kids DVD Statione

s ry
Fiction Toys Movies Diaries
Non-Fiction Board Games Music Notebooks
Management Card Games Games Pens
Computer Comics Pencils
Autobiographies Books Table Items
Magazines
Health
Hobbies
Thank
You

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RETAIL ANALYSIS :

Indian Retail Market Share: 30% of GDP

Source: India Retail Report 2011

HEADQUATERS Eureka Towers,9th Floor, B Wing, Mindspace,

About SHOPPERS STOP Ltd.

Management- SHOPPERS STOP Ltd.

Shoppers Stop Sole retailer Implemented JDA

Shopper's Stop Ltd. has entered into a non exclusive retail

Shopper's Stop Ltd. has a 19% stake in Hypercity Retail (India)

Mothercare PLC of UK, the largest specialist retailer for infant

Shopper's Stop Ltd.'s entry into airport retailing is marked by a

Shopper's Slop Ltd has forayed into the Entertainment sector

Source: Shoppers Stop Annual Report 2010-11

Hom Moth MAC/Est

Source: Shoppers Stop Annual Reports,

Source: Shoppers Stop Annual Reports,

Store Division: State

Source: Shoppers Stop Annual Reports,

METRO AND TIER 1CITIES

Source: Shoppers Stop Investors Presentation

On an average stores 30000 pieces of different products.

Source: Shoppers Stop Investors presentation

Source: Shoppers Stop investors presentation

35% Mens 31%

Mens has reduced by a significant percentage while there is a

Source: Shoppers Stop investors presentation

Source: Shoppers Stop investors presentation

Customer entry is the number of people entering the store (footfall).

Average Selling Price is the Gross Retail Sales divided by the

Transaction size (Rs.)

Transaction Size= Total Sales/Number of cash memos

The First Citizen

Source: Shoppers Stop Annual Report 2010-11

First Citizen Contribution to Total Sales %

Source: Shoppers Stop Annual Report 2010-11

Customer satisfaction index is

WORKING CAPITAL CYCLE

Figures in Days 100

Negative capital of SSL shows that the

Source: Shoppers Stop Annul report , http://www.indiaretailing.com/

CASH FLOW FROM OPERATIONS

Figures in Rs. Crores -200

Net Cash Flows from operating activities (indirect

Source: Shoppers Stop Annul report, http://www.indiaretailing.com/

Figures in Rs. Crores 6000

NOTE: Pantaloons retail follows a July-

Source: Shoppers Stop Annul report , http://www.indiaretailing.com/

SSL earlier worked on the buy- In 2009, SSL introduced the

ADDRESS Hypercity Retail (India) Ltd.

Source: Shoppers Stop Investors Presentation

Aparna Business Head - HR

Tagline: Big store. Big savings.

Source: Shoppers Stop Investors Presentation

2007 2008 2009 2010 2011 2012E 2013E 2014E

Cluster based growth strategy, with Core and Mid

Department Mix % Key Driver

Source: Shoppers Stop Investors Presentation

Other In-store attractions

Widest product range on

Awarded the 100 Must Visit

International Award for

Best in Class Back End Operations to Support Vibrant