Case Study on Shopper's Stop-Project Report on Retailing Industry in India
How to write Dissertation on Shoppers Stop in Retailing Industry in India
Strategic and Company Analysis in Shoppers Stop-Retailing-India
Strategic Direction
Shoppers’ Stop Ltd aims to add
2.7 million sq ft (251,000 sq m) of retail area to its existing spread of 1.3 million
sq ft (121,000 sq m) over the next three to four years, as part of a Rs10
billion plan, which will include investment in a new acquisition, in its other
formats and in an airport retail joint venture. It has projected an increase in
retail area to 4 million sq ft (370,000 sq m) across all formats. The company
will also increase the size of its new stores from an average of 65,000 sq ft
(6,000 sq m) at present to 85,000 sq ft (7,900 sq m), which will provide it
with space to add 50-80 brands to its overall portfolio. It is planning to fund
the expansion through a rights issue and internal accruals.
Shoppers’ Stop plans to add new
stores in 12 tier-II cities, including Ludhiana, Aurangabad, Amritsar, Surat,
Baroda, Vijaywada and Vizag. It will invest Rs250 million in its airport
retailing venture with the Nuance Group AG. It will invest Rs1,500 million to
expand its formats like Mothercare, Crossword Book Store and HomeStop. It plans
to invest more than Rs2,500 million over four years in retail area expansion of
the Shoppers’ Stop fascia. It has earmarked Rs500 million to increase its stake
in Hypercity Retail (India) from 19% at present to 50% by December 2008, and
Rs5 billion to expand the Hypercity format.
Company Background
·
Shoppers’ Stop Ltd was
established on 27 October 1991, by K Raheja Corp, and is now India’s second
largest department store chain. K Raheja Corp is among India’s largest hospitality
and real estate players, and pioneered the concept of a retail business run by
a group of professionals. From its inception, Shoppers’ Stop has progressed
from being a single brand shop to becoming a fashion and lifestyle store for
the family.
·
K Raheja Corp conducts multiple
lines of retailing activity – lifestyle retailing (Shoppers’ Stop, Home Stop
and Arcelia outlets), mixed retailing (Hypercity hypermarket and Expresscity
convenience stores), specialty retailing (Crossword, Mothercare, MAC, Clinique
and Desi Café food service) and other initiatives, like the Nuance Group (for
airport duty-free retailing), Time Zone (for amusement and gaming centres) and
Hypercity Argos (for catalogue retailing).
·
While Shoppers’ Stop,
Hypercity, Crossword, Expresscity and Home Stop are brands belonging to the
company, either directly or through subsidiary companies, for other brands,
such as Hypercity Argos, MAC, Clinique and Mothercare, the company has tied up
with various other international companies.
·
Shoppers’ Stop is the only
Indian retailer represented in the Switzerland-based Intercontinental Group of
Departmental Stores (IGDS) – in addition to 32 well-established retailers from
28 countries all over the world, including Selfridges of the UK, Karstadt of
Germany, Takashimaya of Japan, CK Tang (Singapore) and Lamcy Plaza of Dubai.
·
Between its inception and March
2008, Shoppers’ Stop had invested Rs2,500 million to establish 1.3 million sq
ft (121,000 sq m) of retail space across 24 stores in 11 cities. During 2008,
it opened five department stores, one each in Noida and Kolkata, and three in
New Delhi. As of the end of 2008, it had a total count of 27 department stores
across 12 cities in India. Shoppers’ Stop has its strongest presence in West
India and North India, and the smallest in East and Northeast India. Like other
department store chains, its outlets are located in larger cities, such as
Delhi, Mumbai, Bangalore, Hyderabad, Chennai and Kolkata, with these cities
accounting for 17 of the Shoppers’ Stop outlets.
·
In 2008, Shoppers’ Stop
endeavoured to address niche segments within lifestyle retailing. It launched
its latest lifestyle retailing format, Arcelia, which retails high-end
cosmetics, perfumes, leather products and footwear for women. To increase footfall
and volume sales, Arcelia offers shopping and entertainment, and personal care
services like spas and make over sessions.
·
Nuance Group (India) Pvt Ltd, a
joint venture company between Shoppers’ Stop Ltd and The Nuance Group AG,
Switzerland, opened its first duty-free store at Hyderabad International
Airport, on 25 March 2008.
·
To provide increased shopping
convenience to its regular customers through 24/7 access to its services,
Shoppers’ Stop launched its on-line store website, www.shopperstop.com, in August
2008. It offers a selected range of domestic and international premium goods,
with exclusive brands of men’s, women’s and children’s apparel, fragrance and
beauty products, accessories, toys, home decor and gifts through the on-line
store. The service is currently available in Mumbai, Navi Mumbai and Thane.
Shoppers’ Stop plans to roll out the service in other cities in 2009.
Source-Euromonitor International : Local Company
Profile-April 2009
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