Introduction

About Retail Sector

Retailing in India is up for change. It has broken the eggshell and ready
to grow into a giant that will match the retailing practices of the west.
There are two types of retailing first organized and another is
unorganized, in India there is unorganized retailing. In India the share
of organized retailing is less than 10% and only 8% people are
engaged in organized retailing.

Above is the chart showing the Space Distribution of different metros

of India. In this chart Delhi has maximum space which can be utilized
as Retail space.

Here we have shown the break-up of Delhi & NCR area where Gurgaon
has the maximum space.

India is being seen as a potential goldmine for retail investors from

over the world and latest research has rated India as the top
destination for retailers for an attractive emerging retail market. India’s

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vast middle class and its almost untouched retail industry are key
attractions for global retail giants wanting to enter newer markets.
Even though India has well over 5 million retail outlets, the country
deeply lacks anything that can resemble a retailing industry in the
modern sense of the term. This presents international retailing
specialists with a great opportunity. The organized retail sector is
expected to grow stronger than GDP growth in the next five years
driven by changing lifestyles, growing income and favorable
demographic outline.

About Shopper’s Stop

Shoppers' Stop is a chain of retail stores in India owned by K Raheja

Corp. It was started in 1991 for its first store in Andheri in Mumbai near
Vishnu Baug Colony in S.V. Road. Currently it operates stores in
Bangalore, Hyderabad, Lucknow, Gaziabad, Jaipur, Delhi, Chennai,
Mumbai, Pune, Gurgaon and Kolkata.

Shopper’s Stop is an mixture of the leading international and national

brands in clothing for men, women, and kids; accessories, fragrances,
cosmetics, footwear; home furnishing and decor products, their
employee told us that their stores aim to provide shoppers a truly
international shopping destination in local areas.

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In April 2008, Shoppers Stop changed its logo and
adopted the mantra "Start Something New". Around
the same year it was awarded as the Emerging
Retailer of the Year by the World Retail Congress
(WRC). Its Managing Director Mr. B.S Nagesh who is
incidentally the first employee of the company has
1
www.wikipedia.org/wiki/Shoppers%27_Stop
been inducted into the Retail Hall of Fame at the
WRC.

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Shoppers Stop started off as a department store in the early nineties.
Subsequently it has diversified into Specialty business represented by
Crossword Book Stores, Brio (Coffee Chain), Desi Cafe (Indian Fast
Food), Mother Care (Franchisee of the UK brand for mothers and kids)
and MAC (Makeup Artist Cosmetics). Shoppers Stop the department
store runs one of

India's most effective loyalty programs called First Citizen which has
over 1 million members. Over 65 percent of Shopper’s Stop revenues
come from these First Citizens members. Actually these First Citizen
members are their loyal customers, means they are the main
customers who come again and again for shopping.

Shoppers Stop is recognized by the Indian Retail industry as pioneer in

the use of technology. Organised retailing; supported by world-class
systems and practices; and a talented group of people with a shared
passion for making every shopper visit a memorable one, has helped
Shoppers Stop to grow from a single store in 1991 to the largest chain
of Department Stores in India today.

Vision of the Shopper’s Stop

“To be a Global Retailer in India and Maintain No.1 position in the

Indian Market in the Department Store Category”. This statement was
described by the employee and he told us that as you all know that we
are king in our sector so we want to maintain that position in the
market and they are thinking for opening more stores because of
increasing competition. But if we analyse current trend then we have
to use wait and watch policy.

He added that, “they are looking festive season as opportunity for their
business”.

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India – 2000 & Beyond…

Expanding its operations to Bangalore, Hyderabad, Jaipur, Delhi,

Chennai, Mumbai, Pune, Gurgaon and Kolkata, Shoppers’ Stop is today
recognised as India’s premier shopping destination. Their employee
told us that around 1000 customers visit there on daily basis out of
which many are for window shopping but they are planning for making
those customers to buy something and currently they are dealing with
over 250 brands of garments and accessories, Shoppers’ Stop has
clearly become a one stop shop for all customers.

Customer Profile

Shoppers’ Stop’s customers fall between the age group of 16 years to

35 years, the majority of them being families and young couples with a
monthly household income above Rs. 20000 and an annual spend of
Rs.15000. A large number of Non - Resident Indians visit the shop for
cultural clothes in the international environment they are used to
which means people from abroad are also interested in shopping in
Shopper’s stop. Their target customers are upper middle class and
upper class.

Customer Rewards – The First Citizen

Shoppers Stop’s customer loyalty program is called The First Citizen.

The program offers its members an opportunity to collect points and
avail of special benefits. Currently, Shoppers’ Stop has a database of
over 2.5 lakh members who contribute to nearly 65% of the total sales
of Shoppers’ Stop.

International Affiliations

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2
Shoppers’ Stop is the only retailer from India to become a member of
the prestigious Intercontinental Group of Departmental Stores (IGDS).
The IGDS consists of 29 experienced retailers from all over the world,
which include established stores like Selfridges (England), Karstadt
(Germany), Shanghai No. 1 (China), Matahari (Indonesia), Takashimaya
(Japan), C K Tang (Singapore), Manor (Switzerland) and Lamcy Plaza
(Dubai). This membership is restricted to one member organization per
country/region.

The IT Backbone

Shoppers’ Stop was the first few retailers to use scanners and barcodes
and completely computerise its operations. Today it is one of the few
stores in India to have retail ERP (Enterprise resource planning) in
place, which is the best retail planning system in the world. With the
help of the ERP, they are able to open new stores faster and get
information about merchandise and customers online, which reduces
the time in taking quick decision.

Objectives of Shopper’s Stop

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www.shoppersstop.com

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Their main objective is to make their customer satisfy and then profit
through sales, employee added after all every organization works to
earn money which is possible through good sales and if our customers
are not satisfy then it will be difficult for us. So we put our effort on
retaining our customers because retaining old customers is more
profitable than making new customers.
And if we analyse this statement then we come to know that their 65%
of their customers are their first citizen customers.
Today people goes for variety and shoppers stop is doing that, they
offer total 250 brands to their customers which act as their strength
and help them retaining as well as making new customers. They
believe in producing quality so they offer quality products basically
international brands like Louis Phillip, Black Berry, Police, DKNY, Ferrari,
etc.
Shoppers’ Stop aims to position itself as a global retailer. The company
intends to bring the world’s best retail technology, retail practices and
sales to India. Currently, they are adding 4 to 5 new stores every year

Type of Retail Outlet

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 Shopper’s Stop is known as multi-Brand retail out let because of their
F ragran ce &
verity
D iv isio n of Products.
A pparel TheyB e aoffer H o m e & T r a products
various vel G i f t i dlike
eas apparels,
u ty

Accessories, Toys,
M en
Fragrances,
P e r fu m e s
Beauty Products, Travelling products,
H om e S a le & D isc o u n t
Home
D e p a r t m e nAppliances,
t W o m e n etc. It will
S k i n be
C a r e easier to understand with Merchandise
Travel G ift V o u c h e r
K id s C o s m e tic s
Hierarchy which Shopper’s Stop offers to his/her customers, which is
on the next page.
F o r m a ls M en K itc h e n M en
C a su a ls W om en Bed W om en
A cc e sso r ie s U n is e x B a th H om e
K id s
F o r m a ls O ily S k in L uggage U n ise x
C a te g o r y C a su a ls D r y S k in L a p to p B a g s M em bers
A cc e sso r ie s N o rm a l Sk in T ravel
A c c e sso r ie s
B oys F or E yes
G ir ls F o r N a ils
T oys For Face

S h o p p e r s S t o p ’s M e r c h a n d i s e H i e r a r c h y
P h o to F r a m e s W a tc h e s
H a lf S le e v e P illo w C o v e r
F u ll Sle e v e D in n e r S e t Pens
K itc h e n T o o ls H and Bags
B e d S h e e ts J e w e lry
H a lf S le e v e B a th R o b e s T ie s
S u b - C a te g o r y
F u ll Sle e v e T o w e ls C u fflin k s
C r y s te ls C r y s ta ls
Vases Top w ear
H a lf S le e v e P e r fu m e s
F u ll Sle e v e

L ee A d id a s S to p
W ra n g le r F errari M a g p p ie L ee
Z o d ia c P o lic e
C o r e lle B ib a
B ib a Ivy A d id a s
B ran ds L oreal L akm e
S to p G io r d a n o
D iy C ham bor M a y b e lin e
C a se L o g ic C o r e lle
L oreal S ir e C a se L o g ic
A d id a s L akm e S a m s o n i te
Ivy
L ee M a y b e lin e

P o lo T -S h ir t
2 B u tto n
C u fflin k S te e l D S
B o n e C h in a
S h o r t K u r ti P r in te d
S ty le s / F a s h io n L o n g K u r ta
Jean s L e a th e r
W h e e le r
S m a ll
S h o r ts
T -sh ir t

D iffe r e n t S iz e D iffe r e n t P a c k D iffe r e n t S iz e D iffe r e n t R a n g e

D iffe r e n t C o lo r P r ice R a n g e D iffe r e n t C o lo r 1 0 % , 4 0 % , e tc
P r ice R a n g e P r ic e R a n g e
D iffe r e n t
D iffe r e n t S iz e D iffe r e n t P a c k
O p tio n s Vou ch ers
D iffe r e n t C o lo r P r ice R a n g e 1 0 0 ,2 0 0 ,5 0 0 , e tc
P r ice R a n g e in R s .

D iffe r e n t S iz e D iffe r e n t P a c k D iffe r e n t S iz e 7

D iffe r e n t C o lo r P r ice R a n g e D iffe r e n t C o lo r
P r ice R a n g e P r ic e R a n g e
From the above chart we can understand that what type of retail outlet
Shopper’s Stop is? They offer various products like Apparels, Fragrance
& Beauty, Home & Travel, Gift ideas. Under this they have different
Categories, Brands and Styles to offer customers. They have many
other showrooms of Shopper’s Stop in Delhi and NCR, so we can say
that they have long chain of retail outlets. They also offer online
purchasing which means that they are using new technology to
increase their sales.

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 Controllable & Uncontrollable Factors

Controllable & Uncontrollable factors are those which are directly or

indirectly affect the retail outlet. The difference between these two
factors is that one can be controlled by the retailer and another cannot
be controlled. The variables which are controllable can be change
according to the retailers but if we talk about uncontrollable factors
then the retailer have to change him/her according to those factors.
There are various Controllable &uncontrollable Factors. When we ask
about these factors to the employee of Shopper’s Stop, he told us that

Controllable Factors of Shopper’s Stop

1. Pricing
2. Store Location
3. Managing a business/workforce

Pricing

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He told us that setting price of a product is in our hands. This is our
decision that how much profit we want to make by selling our products.
Sometimes we have to set our prices according to the competition.

Store Location
Selecting the location for the store is in the hands of retailers because
before selecting the location they have to check many factors like
walking traffic, competitor, parking, infrastructure, etc. They also have
to decide that they want to buy the site or they will take it on rent. So
after deciding all these things they reach to the final decision.
Managing a Business/Workforce
He told us that managing the workforce means a lot to them, because
they have to decide that what type of people they need what type of
training our employees need, and what will be the salary of our
employees. All these things can be controlled by the retailer.

Uncontrollable Factors of Shopper’s Stop

1. Government Policies
2. Seasons
3. Inflation Rate
4. Technology
5. Infrastructure
Government Policies
Government policies or Legal Restriction cannot be controlled and the
big example of this is “sealing of illegal shops”. The taxes and duties
which retailers have to pay to the government.
Seasons
He told us that natural climates cannot be controlled and they have to
go according to that like in winters they have to change their theme
and products also. He also told us that a sometimes season plays a
negative role like in rainy season their sales goes down. So these

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things cannot be controlled and they can only launch new marketing
strategies to attract the customers.

Inflation Rate
He told us that as we all know that now inflation rate is more that 12%
so it is creating more problems for us because due to this people are
getting more aware of saving money and due to which our sales is also
affected. If we analyze the global market then we will see that every
sector is going down except one or two. And retail sector is also not
doing well these days. Against this we can’t do anything, we can only
wait.
Technology
He told us that day by day the technology is upgrading and the
problem is that the new competitor comes with new technology
because of which they also have to upgrade their technology which
results more expenditure, which is not good for any business.
Infrastructure
Infrastructure includes the roads, surroundings, etc. All these things
are governed by the allotted authorities like DDA, NDMC, HUDA. So it
can’t be controlled.

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 Supply Chain

Understanding the importance of distribution and logistics in ensuring

that merchandise is available on the shop floors, has led Shoppers’
Stop to streamline its supply chain. The company has developed
process manuals for each part of the logistics chain. These modules
include vendor management, purchase order management, stock
receiving systems, purchase verification and inventory buildup, fixing
of price and store tags, dispatch of stocks to the retail floor and
forwarding of bills for payment.

If we talk about various brands then the answer is that they have a
direct tie ups with different companies and companies deliver all the
needed products to their door-step means deliver all the goods to
every shopper’s stop showroom.

But there are some companies which do not provide them these
services so for those they have their own carrier.

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 Situational Analysis

Situational Analysis includes current organizational mission, current

ownership and management alternatives, and current goods/services
category. As we have explained in explained above about the mission
management alternatives, current products, so now here we have done
the SWOT analysis of Shopper’s Stop.
Strength
• Variety
• Range
• Different Brands

Weakness

• Very high rates : They provide international Brands due to which

their prices are very high.
• Less Schemes : They do not offer so much schemes, they offer
schemes only on special occasions like Diwali, Independence
Day, etc.
• Less Discounts : They offer less discount in their schemes, they
basically offer 10% to 20% discount

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Threats
• Government Policies
• Entrance of New Players
Opportunities
• Awareness about the brands
• Quality
• Youngsters

Recommendations
1. They should introduce more schemes, discounts, sales to
increase the sales.
2. They should introduce Low rate Brands which will attract the
middle class customers also or brands for masses.

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 Bibliography
1. Retail Management - Barry Berman
-Part one – An overview of Strategies,
Page 79-81 Chapter 3- Strategic Planning in Retailing
-Part six – Merchandise Management and Pricing
Page 452-455 Chapter 15 – Implementing Merchandise
Plans

2. Strategic Marketing Management Notes – Mr. Hitesh Manocha

3. www.ShoppersStop.com- Introduction part

4. www.aboutretail.net/types_of_retail_outlet, Arkay Cost Reduction

Ltd 2005

5. Esteves, J., and Pastor, J., Enterprise Resource Planning Systems

Research: An Annotated Bibliography, Communications of AIS,
7(8) pp. 2-54

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