Retail Analysis of Shoppers Stop

1. RETAIL ANALYSIS : Shoppers Stop

2. 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

3. 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

4. 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 STORES 49
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/

5. SHOPPERS STOP: AN OVERVIEW
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 Mirchandani Director
Neel C Raheja Director Nitin Sanghavi Director
Shahzaad S Dalal Director Nirvik Singh Director
Source: http://corporate.shoppersstop.com/

6. HISTORY OF SHOPPERS STOP
Retail Mix/Year 1991 1992 1993 1994 1995 1996
Began the modern First step
retail revolution in towards
Location India with the pan-India
launch of Men’s presence.
ready-to-wear Launched its
store second store in
at Bengaluru
Andheri(Mumbai)
Launched an
Consumer exclusive loyalty
service program titled
“The First
Citizen’s Club”
Offering Added Casuals, Kidswear Launched
Merchandise expanded to and Non-apparel “STOP” the first
assortment include section(Jewellary, in-house label
suiting, Fragnances, Cosmetics
boyswear and Watches) making
and ladies Shoppers Stop India’s first
merchandise ever departmental store
Began its journey of
exciting marketing
Communication promotions and in-store
Mix excitement with the first of
its kind “Festival of
Britain”, celebrated in
association with the
commercial department of
British Consulate
Source: http://corporate.shoppersstop.com/

7. HISTORY OF SHOPPERS STOP
Retail Mix/Year 1997 1998 1999 2000 2001 2002
Opened third Retail revolution took Opened stores at Opened stores in Opened store in
store in roots in North Chennai and Chembur Pune and Bandra Kandivli (Mumbai)
th th th
Location Hydrabad India with the launch (Mumbai ) (8 and 9 store) (10 store)
th th
of stores in Ansal (6 & 7 store)
Plaza(Delhi) and
th th
Jaipur (4 & 5 store)
Launched a co-
Consumer branded credit
service card for its loyalty
members in
association with
HSBC
Launched
Prikrama, a
Communication festival to
Mix celebrate Indian
tradition and
culture
Acquired Crossword-
New India’s leading retail
Formats book chain
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/

8. HISTORY OF SHOPPERS STOP
Retail Mix/Year 2003 2004 2005 2006 2007
Stepped into East with the Opened stores in Opened stores in Pune, Opened stores
launch of store in Kolkata. Malad (Mumbai), Juhu (Mumbai), in Mumbai and
st
Location Also opened stores in Kolkata and Bangalore and Lucknow (21
th th nd
Mulund(Mumbai) and Gurgaon Bangalore Ghaziabad (17 ,18 , and 22 )
th th th th th th th th
(11 , 12 & 13 ) (14 , 15 &16 ) 19 and 20 )
Created movie merchandise
Merchandise history with unveiling of the
assortment Om Shanti Om collection
Brand positioning
changed from “Feel the Celebrated the launch with
Communication Mix experience to Shopping. Sharukh Khan, Deepika
And beyond” Padukone and Arjun Rampal
modelling the cloths at a
fashion show.
HomeStop- Home need Launched Signed a 50:50 JV with the
New specialist store launched Mothercare in Nuance Group for Airport
Formats 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 India’s IPO oversubscribed Declared ‘Gold Shield’ Award for
Accomplishments 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
Source: http://corporate.shoppersstop.com/

9. HISTORY OF SHOPPERS STOP
Retail Mix/Year 2008 2009 2010 2011
Expanded footprints to new Expanded to 49 stores across
cities like Bhopal, Amritsar and 22 cities
Location 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 Mix reinvented as a “Bridge
to luxury” brand with
unveiling of the new logo
and tagline, “START
SOMETHING NEW”
Increased stake in Hypercity
New Retail (India) Limited to 51%
Formats
Awarded the “Emerging Recognized as ‘Most
Accomplishments market retailer of the Respected Company in Retail
Year” at the World Retail Sector’ by Business World
congress in April 2008
Source: http://corporate.shoppersstop.com/

10. SHOPPERS STOP FORMATS
Shoppers Stop Ltd. Consolidated with SSL
SS Department Stores Business Subsidiary Companies 30% JV Companies 2
68% Sales Contribution Sales Contribution 2% Sales Contribution
SSL Stake SSL Stake
51% 50%
•No of stores: 1
•No of stores: 43 (incld. 2 duty paid airport stores) •GFA: 0.2 lacs sq ft
• No of stores: 10
•GFA: 24.58 lacs sq ft. • GFA: 10.64 lacs sq ft. SSL Stake
•Sales for 6 months as of Sep,2011 : Rs 920 Cr • Sales for 6 months as of Sep 45%
•Sales for full year as of March, 2011 : Rs 1676 Cr 2011 : Rs. 369 Cr • No of stores:14
• Sales for full year as of March •GFA: 0.97 lacs sq ft.
2011 : Rs 597 Cr
• No of stores: 8 No of stores: 35 SSL Stake
• GFA: 1.37 lacs sq ft. GFA: 0.14 lacs sq ft. 100%
• No of stores: 84
• Own Stores : 43
• GFA: 2.52 lacs sq ft.
•No of stores: 7 •08 – 09 : 8.0 lacs visitors
•GFA: 0.35 lacs sq ft. •10 – 11 : 35 lacs visitors
Well diversified portfolio
to capture the consumer’s
wallet share
Note : Above figures as of 30TH September 2011.
Source: Shoppers Stop Annual Report 2010-11 GFA: Gross Floor Area

11. 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

12. TYPE OF RETAIL OUTLETS
Shoppers Stop Ltd.
Departmental Store-
Specialty Retailing-93 Hypermart- HyperCity -10
Shopper’s Stop- 43
Beauty, Cosmetics Retailing-
Home Products Retailing- Parenting Products-
MAC, Estee Lauder Clinique Crossword Book store(43)
HomeStop (8) Mothercare(7)
(35)
Source: Shoppers Stop Annual Report 2010-11

13. 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
More than 3.93 million sq. ft. area, across 20 cities
As on 30th Sep 2011
Source: http://corporate.shoppersstop.com/investors/presentation-analyst.aspx

14. NUMBER OF STORES
46
44
42
40
38
36
34 17
32
30
28 13
26
24 13
5 Sum of West
22 10
3 Sum of East
20
18 Sum of South
10 3 8
16 9 3 7 Sum of North
14
7 4
12 4
2
10 6 2
8 5 2 4
4 1 4 13
6 2 3 11 12
1 2 10
4 1 2 2 2
1 5 6
2 1 1 3 3 3 3 4 4
0 1 1 1
1 2 3 5 7 9 10 13 16 20 22 27 31 35 43
1991 1995 1998 1999 2000 2001 2002 2003 2004 2005 2006 2008 2009 2010 2011
Source: Shoppers Stop Annual Reports, http://corporate.shoppersstop.com/

15. North South
6 6
5 5
4 4
3 3
2 2
1
1
0
0
Hydrabad Bangalore Chennai
Delhi Gurgaon Amritsar Jaipur Ghaziabad Lucknow Noida
AP Karnataka Tamil Nadu
Delhi Haryana Punjab Rajasthan UP
West East
12 3.5
10
8 3
6 2.5
4
2 2
0 1.5
Indore
Mumbai
Pune
Bhopal
Aurangabad
Jaipur
1
0.5
0
Durgapur Kolkata Siliguri
Maharashtra MP Rajasthan
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/

16. Store Division: City Wise Store Division: Zone Wise
18 17
12
16
10 14
8 12 11
10
10
6
8
4 6 5
4
2
2
0 0
Aurangabad
Amritsar
Kolkata
Delhi
Hydrabad
Lucknow
Bangalore
Ghaziabad
Mumbai
Noida
Bhopal
Gurgaon
Siliguri
Chennai
Indore
Pune
Durgapur
Jaipur
East North South West
Store Division: State Wise
16
14
14
12
10
8 Shoppers Stop’s main market is North
6 5 5 5 and West. Also in West it is mainly
4
4 3 focused in one state and mainly
2 2
2 1 1 1 Mumbai city. Also it has more number
0 of stores in metros as compared to
non-metros.
Source: Shoppers Stop Annual Reports, http://corporate.shoppersstop.com/

17. TYPE OF APPROACH
SSL aims to stick to
the top 10 cities
including
Pune, Bangalore, Hy
derabad and metro
cities.
75 per cent of
the total sales of
SSL comes from
metros and Tier-
1 cities.
METRO AND TIER 1CITIES

18. VISION
To be a Global Retailer in India and Maintain
No.1 position in the Indian Market in the
Department Store Category.

19. TRANSITIONED THE SHOPPERS STOP BRAND FROM
PREMIUM TO BRIDGE-TO-LUXURY
Luxury
Bridge to
Luxury
2009
Premium
2005
Contemporary
Popular
Mass
Source: http://corporate.shoppersstop.com/investors/presentation-analyst.aspx

20. SEGMENTING
Fall between the
age group of 16
years to 35 years,
A large number of
Non - Resident
Shoppers‟ Stop‟s Indians visit the
The majority of core customers shop for ethnic
them being
represent a clothes in the
families and
young couples strong SEC A international
skew 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

21. TARGETING
1993- Added
casuals, kidsw
ear, jewellery, f
Offering ragrances, cos
expanded to metics and
suiting's, boys watches
and ladies making
merchandise in Shopper‟s stop
1992 India‟s first
They started in Departmental
1991 as a Men’s store.
ready to wear
store
Source: http://corporate.shoppersstop.com/

22. POSITIONING
This changed to
'Start Something
From enjoying the New' in 2008 as a
international part of the Brand's
shopping Makeover
experience to strategy, but still
'Feel the experience shopping for connecting to the
while you shop' in emotional current mindset of
1993, fulfillments for customers to
example, buying a constantly upgrade
• 'Shopping. And
beyond.' in 2005, diamond ring for your and experiment.
From the 'Ultimate loved one to express
Shopping your love or flaunting
Experience' in your status.
1992
The evolution of the brand
Shoppers Stop began
when the baseline of the
brand logo changed with
ever-rising customer
aspirations.
PRICING
Shopper’s stop follows premium pricing strategy that is offering high quality products
at high price.
Source: http://corporate.shoppersstop.com/

23. 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

24. REVENUE MIX
Category Wise Sales (%)
Category Wise Sales(%)
Apparels Non-Apparels Non-Apparel Category includes
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
35% 41%
Apparels
Apparels
Non-Apparels 59% Non-Apparels
65%
Source: Shoppers Stop investors presentation

25. REVENUE MIX
Division Wise Sales (%)
2004-2005 2010-2011
35.0% Mens 31.0% Mens
38.0% 41.3%
Ladies Ladies
Children Children
Non-Apparel Non-Apparel
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

26. MERCHANDISE MIX
Private Label & Private Brand
Private Label Sales mix %
21% 20.1% 19.9%
20% 3.31%
19% Decrease
18.1%
18% 17.5%
17%
16% Private Lable Sales mix %
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 Stop’s 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 Stop’s 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

27. 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

28. BRAND PORTFOLIO
APPARELS Jewellery Music Fragrances
Arrow Facet Planet M Christian Dior
Louis Phillipie Carbon Music World Ysl
Park Avenue Parx Sparkles Home Décor 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

29. PHYSICAL CHARACTERISTICS OF THE STORE
Shoppers
Stop
Second
First Floor Third Floor
Floor
Personal Women’s Men’s
Accessories
Care Wear Wear
Reason for such layout: Men are usually serious buyers and also mostly
accompanied by a lady. So women’s section is kept before men’s, 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.
Source: Shoppers Stop investors presentation

30. INTERNATIONAL AFFILIATIONS & ACQUISITIONS
• Shoppers‟ Stop is the only retailer from India to become a
member of the prestigious Intercontinental Group of
International Departmental Stores (IGDS). The IGDS consists of 29
experienced retailers from all over the world, which include
Affiliations 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 Organisation, in the year 2000, along with ICICI ventures
also acquired the reputed bookstore, “Crossword”, which offers
Acquisitions the widest range of books along with CD-ROM, music, stationery
and toys. Services like Dial-a-book, Fax-a-book and Email-a-
book enable customers to shop from their homes. Crossword
currently has 18 Stores.

31. STORE SPACE RAMP-UP
Total Gross Floor Area (in '000s)
2500 2,287
2,047
Total Gross Floor Area 2000 1,822
1,602
11.7%
1500 1,171 Increase
950
1000 752
500
0
FY05 FY06 FY07 FY08 FY09 FY10 FY11
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

32. CUSTOMER ENTRY
35
30.9
30
Customer Entry (in Mn.)
24.9 32%
25 22.8 23.3 Increase
19.9
20
15
10
5
0
2006-07 2007-08 2008-09 2009-10 2010-11
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-à-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

33. CONVERSION RATIO
29%
28%
28%
27% 27%
Conversion Ratio(%)
27%
26%
25% 3%
25% Decrease
24%
24%
23%
22%
2006-07 2007-08 2008-09 2009-10 2010-11
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

34. SALES
SALES (LIKE-TO-LIKE GROWTH %)
(DEPARTMENTAL STORES)
25
SALES PER SQUARE FEET (in Rs.)
21
8800 8671
Sales(like-to-like growth %)
7%
Sales per square feet(in Rs.)
20 8518
17 8600
14 8400 8218
15
8200
7973 7955
10 8000
7800
5 4 7600
1 7400
0 2006-07 2007-08 2008-09 2009-10 2010-11
2006-07 2007-08 2008-09 2009-10 2010-11
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 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

35. AVERAGE SELLING PRICE (ASP)
ASP (Like-to-Like)
Departmental Stores
1000
913
Average Selling Price (Rs.)
950
900 856
821 6.6%
850 Increase
800 759
750 704
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.
Source: Shoppers Stop Annual Report 2010-11, Shoppers Stop Earnings Call

36. TRANSACTION SIZE
Transaction size (Rs.)
Departmental Store
2500 2207
2029
Transaction Size (Rs.)
2000 1843
1713
1562 9%
1500 Increase
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

37. LOYALTY PROGRAM
• 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
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.
Source: Shoppers Stop Annual Report 2010-11

38. LOYALTY PROGRAM
First Citizen Members (in '000)
2500
2017
Despite a 25% increase in First
2000 25%
Citizen members over last year, their
1611
contribution to total sales has
1500 1277
1013
reduced by 2%.
1000 This means that the company need
500
to relook at the efficiency of its
loyalty program.
0
FY08 FY09 FY10 FY11
First Citizen Contribution to Total Sales %
76% 75%
74% 73%
72%
72% 2%
70%
68%
66% 65%
64%
62%
60%
FY08 FY09 FY10 FY11
Source: Shoppers Stop Annual Report 2010-11

39. CUSTOMER SATISFICATION INDEX (CSI)
CSI
85 81 80
80
75
70
63 63
65 60
60
55
50
Jan-06 Aug-06 Nov-07 Feb-09 Apr-10
Customer satisfaction index is calculated
based on the following parameters: There was a significant increase in
Merchandising Range and Quality customer satisfaction from year 2007
Store Environment to year 2009, although there is a small
Staff decrease in customer satisfaction in
Transaction Efficiency year 2010 from year 2009.
Loyalty Programme This may be due to increased choices
Schemes offered to the customers by other
Promotions stores and hence increasing
Customer experience in Shoppers Stop wrt the expectations of the customer
competitor stores
Source: Shoppers Stop Annual Report 2010-11

40. PRODUCTIVITY/OPERATING EFFICIENCY
GMROI
(Gross Margin Return on Inventory) The reduction in inventory per sq. ft. has resulted in
8
5.5
6.03 improved gross margin return on inventory
GMROI (Rs. Inventory)
6
3.62 3.29 9.6%
investment (GMROI) for the company, which
2.75
4 increased to 6.03% in FY10 (from 2.75% in FY06).
2 The company has also benefited from the
0 continued use of the concessionaire model helping
2006-07 2007-08 2008-09 2009-10 2010-11 it to reduce employees on its payroll.
Year Consequently, SSL’s gross margin return on labour
GMROF (GMROL) has increased from 1032609/employee in
(Gross Margin Return on Floor space) FY06 to 1719600/employee in FY10.
GMROF (Rs. per unit of
2735 2771 4%
2608
retail space)
3000 2520 2471
2500
In last two years GMROF, GMROI, and GMROL all
2000 three are slightly down because of the addition of
2006-07 2007-08 2008-09 2009-10 2010-11 new store space. But on a comparable like-to-
Year like, all three have shown a very positive trend.
In year of recession (2008) there was a decline in
GMROL
(Gross Margin Return on Labor)
GMROF because of reduced purchase by the
customer. However the new positioning of bridge to
2,000,000 1,649,991 1,719,600 luxury in year 2008 increased the average cash per
GMROL (Rs. per employee)
1,800,000
1,600,000 4.2% customer and therefore, increased the average
1,198,593 1,270,014
1,400,000 1,032,609
1,200,000 GMROF
1,000,000
800,000
600,000
400,000
200,000
0
2006-07 2007-08 2008-09 2009-10 2010-11
Year
Source: Shoppers Stop Annual Report 2010-11, Shoppers Stop Earnings Call

41. SWOT ANALYSIS
Strengths Weakness
• 4 warehouses, covering more than
• Pressure of increasing leasing
3,50,000 sq. ft covering more than
rentals of Malls.
4,00,000 SKU’s working 24*7
• Slowing expansion due to
• 2 million Loyalty Card holders, First
dependence on real estate developer
Citizen, largest in any format.
for completing projects during
• Endeavor to make Shopping
slowdown.
Experience the differentiator.
SWOT
Opportunities Threat
• Preferred partner for international • Economic slowdown affecting the
brands in various categories due to purchasing power of target
diversified presence. consumer.
• Expansion in different formats and • Rivalry amongst the established
varied locations across India. players and threat of new entrants
as well.

42. COMPETITOR ANALYSIS
WORKING CAPITAL CYCLE
250
200
Figures in Days
150
100
50
0
-50
2008 2009 2010
Shoppers Stop -15.37 -32.47 -31.68
Pantaloon 43.51 62.88 85.12
Trent Westside 108.97 126 166.59
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/

43. COMPETITOR ANALYSIS
CASH FLOW FROM OPERATIONS
200
100
Figures in Rs. Crores
0
-100
-200
-300
-400
-500
-600
2008 2009 2010
Shoppers Stop 11.2 80.99 97.77
Pantaloon -512.7 -278.94 -288.62
Trent Westside 32.75 -56.73 -7.7
Net Cash Flows from operating activities (indirect method);
annual consolidated
Source: Shoppers Stop Annul report, http://www.indiaretailing.com/

44. COMPETITOR ANALYSIS
NET SALES
12000
10000
Figures in Rs. Crores
8000
6000
4000
2000
0
Shoppers Stop Lifestyle Pantaloon Trent Westside
2007-08 1190 810 5840 755
2008-09 1383 960 7669 850
2009-10 1547 1286 9787 1120
NOTE: Pantaloons retail follows a July-June year
Source: Shoppers Stop Annul report , http://www.indiaretailing.com/

45. 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 SSL’s 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 Onwards
the buy-out model of sourcing the consignment model of sourcing
SSL earlier worked on the buy-out model In 2009, SSL introduced the consignment
of sourcing — merchandise was bought model, where vendors manage
from brand owners at factory price and inventory, while SSL picks up only those
SSL solely managed the inventory. This items that sell in the store. Nearly 80 per
meant that it was stuck with unwanted cent of the revenues now come from the
stock and incurred huge inventory costs consignment model.
when sales fell — also a big reason
behind recession taking such a toll on
SSL
Source: http://www.indiaretailing.com/

47. 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 STORES 10
SALES FOR 6 MONTHS Rs. 369 cr
(as of Sep 2011)
SALES FOR FULL YEAR Rs 597 cr
(as of March 2011)
GFA 10.64 Lakh sq. ft.
OWNED In 2006
Source: Shoppers Stop Investors Presentation

48. 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 Veneeth Business Head -
Purushotaman Technology
Ashutosh Chakradeo Head - Buying & Simon Hooper Chief of Operations
Merchandising
Aparna Ranadive Business Head - HR
Source: Shoppers Stop Investors Presentation

49. 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.”
Source: Shoppers Stop Investors Presentation

50. 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 Dec’11)
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 75–85 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

51. HyperCITY: AN OVERVIEW
A strong own brand portfolio
Business Model
Food General Fashion
Merchandise
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
Source: Shoppers Stop Investors Presentation

52. 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 –
Café, 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 Recognize Quality
& Excellence”–April 2010.
Average footfalls per month: 1.3 Mn, indicating strong customer pull

53. HyperCITY: BACK END OPERATIONS
Best in Class Back End Operations to Support Vibrant Front End
Supply Chain and Systems Back end operations and IT Best Practices and Policy
 Operates multi channel  Reliable Inventory –  Majority of product written
supply chain for various Merchandize Management off on completion of 12
product categories System months
 Imports account for 20 % of  Dynamic Auto-replenishment  Quarterly cycle , enabling
General Merchandise system, enabling consistent reliable inventory and
high availability of stocks Shrinkage monitoring
 All DC operations on Wireless
mobile devices  E-Payment for 98%  Performance Linked Reward
transactions Scheme & ESOP
 Furniture and CDIT products
are home delivered
With support
from best in class
partners
Source: Shoppers Stop Investors Presentation

54. HyperCITY: STORE STRATEGY
Among apparels and HyperCity has 62 per
accessories, HyperCity cent of its sales revenue
’s stocks are mainly coming from food and
private label products grocery and 8 per cent
& also introduced from apparels
some brands like Gini
and Jony, Puma and
Lotto in HyperCity.
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

56. 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

57. 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

58. CATEGORIES & ASSORTMENT
Books Kids DVDs Stationery
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

61. Thank You