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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
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
HEADQUATERS INDUSTRY TYPE STATUS COMPANY SIZE NUMBERS OF STORES 2011 REVENUES NET PROFIT TOTAL RETAIL AREA FOUNDED
Eureka Towers,9th Floor, B Wing, Mindspace, Link Road, Mumbai, Maharashtra-400064 Retail Public Company Operating 8000 employees 49 Rs. 439.2 crore Rs. 11.7 crore 3.93 million sq. ft. 1991
Source: http://corporate.shoppersstop.com/
Source: http://corporate.shoppersstop.com/
Location
Consumer service
Merchandise assortment
Launched an exclusive loyalty program titled The First Citizens Club Added Casuals, Kidswear Launched and Non-apparel STOP the first section(Jewellary, in-house label Fragnances, Cosmetics and Watches) making Shoppers Stop Indias first ever departmental store Began its journey of exciting marketing promotions and in-store excitement with the first of its kind Festival of Britain, celebrated in association with the commercial department of British Consulate
Communication Mix
Source: http://corporate.shoppersstop.com/
Location
Launched a cobranded credit card for its loyalty members in association with HSBC Launched Prikrama, a Communication festival to Mix celebrate Indian tradition and culture Consumer service New Formats Shoppers Stop Sole retailer to Implemented JDA Accomplishments incorporated as a be awarded the Retail ERP. First body corporate Intercontinental retailer to adopt ERP Group of Department Stores (IGDS) membership
Source: http://corporate.shoppersstop.com/
Location
Merchandise assortment Brand positioning changed from Feel the experience to Shopping. And beyond
Created movie merchandise history with unveiling of the Om Shanti Om collection Celebrated the launch with Sharukh Khan, Deepika Padukone and Arjun Rampal modelling the cloths at a fashion show. HomeStop- Home need Launched Signed a 50:50 JV with the specialist store launched Mothercare in Nuance Group for Airport in Bengaluru . India and F&B Retailing Launched MAC. outlets Brio and Signed an MOU with Home Crossword became a Desi Caf. Retail Group of UK to enter into wholly owned subsidiary Bought 45% of a franchise arrangement for the Timezone India Agro formats of catalogue & internet retailing Acquired 19% stake in Hypercity Retail (India) Ltd. Voted as Indias IPO oversubscribed Declared Gold Shield Award for most favored retail overall by 17.25 times. Retailer of the excellence in Financial destination of the Year at Images reporting for year 2006 in the year by Images Fashion Forum category of Manufacturing and Retail Reward trading Enterprises by ICAI
Communication Mix
New Formats
Accomplishments
Source: http://corporate.shoppersstop.com/
Location
Merchandise assortment
Pioneered mascot licensing in the categories through exclusive tie-up for certain products with Vodaphone for their product brand mascot Zoozoo Shoppers stop repositioned and reinvented as a Bridge to luxury brand with unveiling of the new logo and tagline, START SOMETHING NEW Increased stake in Hypercity Retail (India) Limited to 51% Awarded the Emerging market retailer of the Year at the World Retail congress in April 2008 Recognized as Most Respected Company in Retail Sector by Business World
Communication Mix
Source: http://corporate.shoppersstop.com/
No of stores: 43 (incld. 2 duty paid airport stores) GFA: 24.58 lacs sq ft. Sales for 6 months as of Sep,2011 : Rs 920 Cr Sales for full year as of March, 2011 : Rs 1676 Cr
No of stores: 10 GFA: 10.64 lacs sq ft. Sales for 6 months as of Sep 2011 : Rs. 369 Cr Sales for full year as of March 2011 : Rs 597 Cr SSL Stake 100% No of stores: 84 Own Stores : 43 GFA: 2.52 lacs sq ft.
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.
Specialty Retailing-93
Parenting ProductsMothercare(7)
LOCATION
SS Home Mother MAC/Estee City Dept. Crossword Stop care /Clinique Hypercity Total Amritsar 1 1 1 1 4 Bangalore 5 9 2 1 4 2 23 Chennai 2 1 1 2 6 Delhi 5 2 1 1 9 18 Gurgaon 1 1 Hyderabad 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 Pune 3 1 1 2 7 Ghaziabad 1 1 Siliguri 1 1 Durgapur 1 1 Bhopal 1 2 1 4 Ludhiana 1 1 2 Aurangabad 1 1 2 Indore 1 1 2 Vijayawada 1 1 1 3 Total 43 43 8 7 35 10 146
Source: http://corporate.shoppersstop.com/investors/presentation-analyst.aspx
NUMBER OF STORES
46 44 42 40 38 36 34 32 30 28 26 24 22 20 18 16 14 12 10 8 6 4 2 0
17
13 13 10 3 10 9 7 6 2 2 3 7 2000 4 2 3 9 2001 5 2 3 10 2002 2 1 2 4 13 2003 3 4 16 2004 5 20 2005 6 22 2006 27 2008 31 2009 35 2010 43 2011 2 4 2 4 10 11 12 13 3 4 3 4 8 7 Sum of West Sum of East Sum of South Sum of North
1 1 1991
1 1 2 1995
1 1 1 3 1998
1 1 3 5 1999
North
6 5 4 3 2 1 0 Delhi Delhi Gurgaon Haryana Amritsar Punjab Jaipur Rajasthan Ghaziabad Lucknow UP Noida 6 5 4 3 2 1 0 Hydrabad AP
South
Bangalore Karnataka
West
12 10 8 6 4 2 0 Indore Pune Aurangabad Mumbai 3.5 3 2.5 2
East
1.5 Bhopal
Jaipur 1 0.5 0 Durgapur Maharashtra MP Rajasthan Kolkata West Bengal Siliguri
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.
Source: Shoppers Stop Annual Reports, http://corporate.shoppersstop.com/
8 6
4 2 0
11
10
5
1
5
2 1 2 3 1
2
0
Shoppers Stops main market is North and West. Also in West it is mainly focused in one state and mainly Mumbai city. Also it has more number of stores in metros as compared to non-metros.
TYPE OF APPROACH
SSL aims to stick to the top 10 cities including Pune, Bangalore, Hyderabad and metro cities.
75 per cent of the total sales of SSL comes from metros and Tier1 cities.
VISION
To be a Global Retailer in India and Maintain No.1 position in the Indian Market in the Department Store Category.
2009
Source: http://corporate.shoppersstop.com/investors/presentation-analyst.aspx
SEGMENTING
Fall between the age group of 16 years to 35 years,
A large number of Non - Resident Indians visit the shop for ethnic clothes in the international environment they are accustomed to.
With a monthly household income above Rs. 20000 and an annual spend of Rs.15000
Source: Shoppers Stop Investors Presentation
TARGETING
1993- Added casuals, kidswear, jewellery, fragrances, cosmetics and watches making Shoppers stop Indias first Departmental store.
Source: http://corporate.shoppersstop.com/
POSITIONING
From enjoying the international shopping experience to shopping for emotional fulfillments for example, buying a diamond ring for your loved one to express your love or flaunting your status.
This changed to 'Start Something New' in 2008 as a part of the Brand's Makeover strategy, but still connecting to the current mindset of customers to constantly upgrade and experiment.
The evolution of the brand Shoppers Stop began when the baseline of the brand logo changed with ever-rising customer aspirations.
PRICING
Shoppers stop follows premium pricing strategy that is offering high quality products at high price.
Source: http://corporate.shoppersstop.com/
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.
38.80%
39.60%
40.50%
41.20%
61.20%
60.40%
59.50%
58.80%
Non-Apparel Category includes Cosmetics, Personal Accessories, Jewellery, Leather goods, Home Ware, Electronics, Books and Music. These are all lifestyle products which have high aspiration value. 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
2004-2005
2010-2011
35%
41%
Apparels Non-Apparels 65%
35.0%
38.0%
31.0% 41.3%
7.0%
18.9%
20.0%
8.7%
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.
Source: Shoppers Stop investors presentation
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 contributed 18% of Shoppers Stops revenues while international brands contributed over 50%. Hence going forward, SSL plans to maintain the share of private label close to 20%.
Source: 1. Shoppers Stop Limited Quarterly Results Conference Call, February 01, 2010 2. http://www.fashionunited.in, News: Shoppers Stop to go easy on private labels, Tuesday, 21 September 2010 3. Live Mint, Shoppers Stop braces for expansion challenge, January 11,2011
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
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
APPARELS Arrow Louis Phillipie Park Avenue Parx Van Heusen Zodiac Stop Caliber Blackberries Scullers Givo Orly Lee Levice Pepe Killer Lee Cooper Wrangler Spykar Life Allen Solly Provouge Wills Jewellery Facet Carbon Sparkles Tanishq FQ Swaroski Gili Oyzsterbay Sarvoski Estelle Shoes Lee Cooper Red Tape Picasso Stop Life Music Planet M Music World Home Dcor Yamini Four Seasons Viva Welspun Borosil Corning Ware Pedrini Pyren Hair Styling Habbibs Books Crossword Fragrances Christian Dior Ysl Davidoff Joop Diesel Lancaster Nicos Jil Sander Calvin Klein Boucheron Police J'del Pozo Myrurgia Etienne Aiger Xm Sunglasses Ray Ban Watches Casio Esprit Fossil Titan
First Floor
Second Floor
Third Floor
Personal Care
Accessories
Womens Wear
Mens Wear
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
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.
Acquisitions
The Organisation, in the year 2000, along with ICICI ventures also acquired the reputed bookstore, Crossword, which offers the widest range of books along with CD-ROM, music, stationery and toys. Services like Dial-a-book, Fax-abook and Email-a-book enable customers to shop from their homes. Crossword currently has 18 Stores.
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
35
Customer Entry (in Mn.) 30 25 20 15 10 5 0 2006-07 2007-08 2008-09 Year 2009-10 2010-11 19.9 24.9 22.8 23.3
30.9
32% Increase
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 2009,2011
CONVERSION RATIO
29% 28% Conversion Ratio(%) 27% 26% 25% 25% 24% 27% 28% 27% 3% Decrease
24%
23% 22% 2006-07 2007-08 2008-09 Year 2009-10
2010-11
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 (LIKE-TO-LIKE GROWTH %) (DEPARTMENTAL STORES) 25 21 Sales(like-to-like growth %)
20
15 10 5 1 0 2006-07 2007-08 2008-09 Year 2009-10 4 14
17
8200
8000 7800 7600
7400
2006-07 2007-08 2008-09 2009-10 2010-11 Year
2010-11
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 customer entry but there was a significant rise in sales as well which resulted in increasing sales per square feet.
Source: Shoppers Stop Annual Report, 2010-11 Shoppers Stop Earnings Call
950
900
850 800 750 700 650 600 2006-07 2007-08 2008-09
6.6% Increase
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.
Source: Shoppers Stop Annual Report 2010-11, Shoppers Stop Earnings Call
TRANSACTION SIZE
Transaction size (Rs.) Departmental Store
2500 Transaction Size (Rs.) 2000 1562 1500 1000 1713 1843 2029 2207
9% Increase
500
0
2006-07
2007-08
2008-09 Year
2009-10
2010-11
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
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
First Citizen Members (in '000)
2500 2017 2000 1500 1000 500 0 FY08 FY09 FY10 FY11 1013 1277 1611 25%
Despite a 25% increase in First Citizen members over last year, their contribution to total sales has reduced by 2%. This means that the company need to relook at the efficiency of its loyalty program.
65%
FY09
FY10
FY11
Customer satisfaction index is calculated based on the following parameters: Merchandising Range and Quality Store Environment Staff Transaction Efficiency Loyalty Programme Schemes Promotions Customer experience in Shoppers Stop wrt the competitor stores
Source: Shoppers Stop Annual Report 2010-11
There was a significant increase in customer satisfaction from year 2007 to year 2009, although there is a small decrease in customer satisfaction in year 2010 from year 2009. This may be due to increased choices offered to the customers by other stores and hence increasing expectations of the customer
PRODUCTIVITY/OPERATING EFFICIENCY
GMROI (Gross Margin Return on Inventory)
GMROI (Rs. Inventory) 8 6 4 2.75 3.62 3.29 5.5 6.03
9.6%
2
0
2006-07
2007-08
2008-09
Year
2009-10
2010-11
The reduction in inventory per sq. ft. has resulted in improved gross margin return on inventory investment (GMROI) for the company, which increased to 6.03% in FY10 (from 2.75% in FY06). The company has also benefited from the continued use of the concessionaire model helping it to reduce employees on its payroll. Consequently, SSLs gross margin return on labour (GMROL) has increased from 1032609/employee in FY06 to 1719600/employee in FY10. In last two years GMROF, GMROI, and GMROL all three are slightly down because of the addition of new store space. But on a comparable like-to-like, all three have shown a very positive trend. In year of recession (2008) there was a decline in GMROF because of reduced purchase by the customer. However the new positioning of bridge to luxury in year 2008 increased the average cash per customer and therefore, increased the average GMROF
4%
4.2%
2006-07
2007-08
2008-09 Year
2009-10
2010-11
Source: Shoppers Stop Annual Report 2010-11, Shoppers Stop Earnings Call
SWOT ANALYSIS
Strengths
4 warehouses, covering more than 3,50,000 sq. ft covering more than 4,00,000 SKUs working 24*7 2 million Loyalty Card holders, First Citizen, largest in any format. Endeavor to make Shopping Experience the differentiator.
SWOT
Weakness
Pressure of increasing leasing rentals of Malls. Slowing expansion due to dependence on real estate developer for completing projects during slowdown.
Opportunities
Preferred partner for international brands in various categories due to diversified presence. Expansion in different formats and varied locations across India.
Threat
Economic slowdown affecting the purchasing power of target consumer. Rivalry amongst the established players and threat of new entrants as well.
COMPETITOR ANALYSIS
WORKING CAPITAL CYCLE
250 200 Figures in Days 150
100
50 0 -50 Shoppers Stop Pantaloon Trent Westside 2008 -15.37 43.51 108.97 2009 -32.47 62.88 126 2010 -31.68 85.12 166.59
Negative capital of SSL shows that the company is able to pay its creditors in advance
COMPETITOR ANALYSIS
CASH FLOW FROM OPERATIONS
200 100 Figures in Rs. Crores 0 -100 -200 -300 -400 -500 -600 Shoppers Stop Pantaloon Trent Westside 2008 11.2 -512.7 32.75 2009 80.99 -278.94 -56.73 2010 97.77 -288.62 -7.7
Net Cash Flows from operating activities (indirect method); annual consolidated
COMPETITOR ANALYSIS
NET SALES
12000 10000 Figures in Rs. Crores 8000 6000 4000 2000 0 2007-08 Shoppers Stop 1190 1383 Lifestyle 810 960 Pantaloon 5840 7669 Trent Westside 755 850
2008-09
2009-10
1547
1286
9787
1120
Till 2008
HyperCITY: AN OVERVIEW
ADDRESS
INDUSTRY SSL Stake STATUS NUMBERS OF STORES SALES FOR 6 MONTHS (as of Sep 2011) SALES FOR FULL YEAR (as of March 2011) GFA OWNED In
Source: Shoppers Stop Investors Presentation
Hypercity Retail (India) Ltd. Paradigm, A-Wing, 1st Floor, Mindspace, Malad Link Road, Malad (West), Mumbai 400064. Retail 51% Operating 10 Rs. 369 cr
Rs 597 cr
10.64 Lakh sq. ft. 2006
HyperCITY: AN OVERVIEW
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 Ashman
Chief Executive Officer
Aparna Ranadive
Business Head - HR
VISION
To be an integral part of customer lives, by offering them a high quality shopping experience through great products at ever better prices. Tagline: Big store. Big savings.
HyperCITY: AN OVERVIEW
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 2007 1 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
Source: Shoppers Stop Investors Presentation
HyperCITY: AN OVERVIEW
Business Model
Food
Private label 21%
General Merchandise
Fashion
Branded 79%
Department Food & Groceries General Merchandise [Home, Furniture, CDIT] Apparels & Jewellery
Key Driver Footfall driver Value & Margin driver Fashion, Value & Margin Driver
Product Offering
International Award for Corporate Achievement to Recognize Quality & ExcellenceApril 2010.
Average footfalls per month: 1.3 Mn, indicating strong customer pull
Best in Class Back End Operations to Support Vibrant Front End Supply Chain and Systems
Operates multi channel supply chain for various product categories Imports account for 20 % of General Merchandise All DC operations on Wireless mobile devices Furniture and CDIT products are home delivered
Among apparels and accessories, HyperCitys stocks are mainly private label products & also introduced some brands like Gini and Jony, Puma and Lotto in HyperCity.
HyperCity has 62 per cent of its sales revenue coming from food and grocery and 8 per cent from apparels
At present, HyperCity stores are 80,000 to 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.
Source: Shoppers Stop Investors Presentation
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, with Eighty three stores, 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
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
Books
Fiction Non-Fiction Management Computer Autobiographies Magazines Health Hobbies
Kids
Toys Board Games Card Games Comics Books
DVDs
Movies Music Games
Stationery
Diaries Notebooks Pens Pencils Table Items
Thank You