BHABANI SSL

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DECLARATION

I do here by declare that the project entitled A STUDY ON RETAIL STORE

OPERATION OF IN SHOPPERS STOP Submitted by me to the Department of

Post Graduate Diploma in Management- Retail from Institute of Management and

Information Science, Bhubaneswar for partial fulfillment of the requirement for

the award of during the session 20010-2012 is an original work of mine and it has

not been submitted to any other institution before.

BHABANI SANKAR RANA

ROLL NO-10DR004


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CERTIFICATE

This is certify that the project entitledA STUDY ON RETAIL STOREOPERATION IN SHOPPERS STOPhas been prepared by Bhabani Sankar

Rana, RollNo-10DR004, student of 2010-12 of Department of Post

Graduate Diploma in Management- Retail from Institute of

Managementand Information Science, Bhubaneswar has competedthe

projectunder my guidance and supervision.

Prof. Rabinarayan Patnaik

Coordinator, Retail Program,

IMIS,Bhubaneswar


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Acknowledgement

I am grateful to our honourable Director General Mr. Hemanta Kumar Patnaik and

Mr.Sagar Nayak (Department Manager) for providing me the opportunity to understand

and practice retail functions at Shopper Stop.I am indebted to Prof. Rabinarayan

Patnaik, Co-ordinator, Retail Programe for his valuable advices which have helped me

a lot in the proper completion of this project.

At last but not the least I would like to extend my whole-hearted thanks to all those at

Shoppers Stop, Malad,Mumbaiand anybody and everybody without whom this could

not have become a successful one.

Nameand signature ofthe student

Rollno.


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ABSTRACT

Store operation management occurs in shoppers stop an ongoing basis tovarying degrees within most retail organizations.


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SL NO. CHAPTERS

1 SIGNIFICANCE OF THE

STUDY

2 COMPANY BACKGROUND

3 THEORETICAL APPROACH

OF STORE OPERATION

4 MEANING AND DEFINITION

5 VARIOUS TYPES OF STORE

OPERATION


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SIGNIFICANCE OF THE STUDY

The significance of my study are:-

1. Store administration and management of the premises

2. Managing inventory and display

3. Managing receipts

4. Customer service

5. Managing promotions, events, alliances and partnerships


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Retail -Retail is the sale of goods to end users, not for resale, but for use andconsumption by the purchaser. The retail transaction is at the end of the supply chain.Manufacturers sell large quantities of products to retailers, and retailers sell small

quantities of those products to consumers.Store OperationsStore operation is defined as the daily procedures, creating internalcontrols and systems, establishing retailing functions and other day-to-dayretail store operations.


2. Managing inventory and display

3. Managing receipts4. Customer service

5. Managing promotions, events, alliances and partnerships.

Store operations The retail store is the place where the customers

takeadecision onthepurchase ofthe products offeredbytheretailer.

The storealso influences theperceptionthat customers form intheirminds about the store, the products, services and staff. From the

managements point of view, operations of the store and a major

element of the cost. As a consequence, the store itself becomes a

critical asset of the retail business and it is imperative that the

operations are managed well to achieve and sustain customer

satisfactionandbe costeffective. Managing store operations fora small

retailbusiness of any size or complexity fromtheneighborhoodgrocer

to thenationalretail chainis a challengingtask. Itrequires integration

amongvarious functions withinthe store. When allthe functions are

performed in an integration manner, the store operations run

smoothly. KEY ROLES IN STORE ENVIRONMENT The retail store is of


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primeimportanceto theretail origination, fortwo reasons. Theretail

store is theprimary source ofrevenue for theretailerand It is the

point wherethe customeractuallyinteracts with theretail storeandits

offerings. Theprimaryresponsibility withintheenvironment ofaretailstorelies with the store manager. The storemanager has to playadual

role in retail environment. On one hand he is responsible for the

various members ofthe staffandteam who reportto himand enable

the smooth functioning of theday-to-day operations ofthe store. On

the other hand he also has to ensure that the policies and the

guidelines as laiddownby the management, are adhered to by the

storeandallemployees withinthe store .typically, the storemanagerisresponsible foralltheactivities thatare conducted withinthe environs

of the store and would include the opening of the store on time,

scheduling of staff, cleanliness,ensuringadequate stock on the floor,

closing ofthe storeandalso dealing with the customergrievances and

complaints. While the storemanagermaynot personallyperformall

these functions, he would be responsible for the tasks being

performed. Thus there may be other individuals who handle these

tasks, but the overall responsibility of ensuring that they are

performedas pertheguidelines laiddownbythe company,rests with

the storemanager. Thus, if one were to enlists the responsibilities of

the storemanager, they would include: BUDGETING AND PLANNING

Ensure that the goals are met through appropriate planning and

organization of staff, inventoryandexpenses, for shortand longterm

success. Monitoraloss preventionproagramto protectthe companys

inventory and assets. Develop and monitor the capital expenses

budgetto ensurethatthe store is properlymaintainedandupgraded

so as to meet the high maintenance standards that reflects the


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profitable image . COMMUNICATION Communication with the

regional office/head officeas perthe requirements laiddownbythe

organization with reference to sales, target customer service,events

and local issues. Hold staffmeetings to boost employeemorale anddrive forachievingthe results needed. Ensurethe companypolicyand

procedures are communicated in a manner and adhered to strictly.

Motivate and develop staff in order to encourage their professional

development.

CUSTOMER SERVICE Instilltheemployees,themeaningand

importance of customer serviceas outlinedintheretailphilosophy.

Promoteandmonitorthequality of serviceamongthe staffthrough

trainingandbyactingas positiverolemodel. Bepersonallyavailableto

allthe customers to communicateandindentify theirneeds andto

address theirquestions or concerns. PERSONAL Inspireemployees so

thateach person contributes to theproductivity of the store. Delegate

the workloadappropriatelyandeffective. Writeperformance

evaluationandgoalassessments forthe Assistant Store Manager.LEGAL COMPLIANCE Ensurethatthe storeis in compliance with

employmentlaws,including thoseregarding wageand hour, human

rights andequalemployment opportunities. Maintain safe working

conditions fortheemployees and customers cominginthe store,

resolveany safety concerns quickly. Ensure store security frominternal

andexternaltheftandgetto know the properapprehensionand

prosecutionprocedures foryour state.

The otherimportantposition withintheretail storeenvironmentis that

ofaCashier. The Cashierintheretail storeis aperson who basically,is

responsibletransactingthe exchange ofthemoney or credit with the

customers inreturn formerchandise or services. The cashierinaretail


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storeis responsible forbilling, collection of cash, credit card, foreign

currency,andtravelers cheques oragiftvoucher,as maybe

applicable.

ELEMENTS/ COMPONENTS OF RETAIL OPERATIONS

In orderto ensurea smooth flow of operations atthe storelevel,itis

necessarythatthe managementdefines processes and has thepeople

andtheresources to implement them. Thetasks to beperformedand

theprocesses areusuallydefinedina store operations manual. This

documentlists thetasks which needto be carried outatthe storelevel;

it states theresponsibilityandthetimeperiodin which thesetasks

needto beperformed. A well-prepared operations manual orblue

printis the startingpoint ofefficient store operations Typicallyina

retail store,the followingtasks needto beperformed.

1. Storeadministrationandmanagement ofthepremises

2. Managinginventoryanddisplay

3. Managingreceipts

4. Customer service

5. Managingpromotions,events,alliances andpartnerships.


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COMPANY BACKGROUND

Shoppers Stop Ltd is a professionally managed and systems driven organisation promoted bythe K Raheja Corp Group (Chandru L Raheja Group), one of the leading players in the countryin the business of real estate development and hotels.

Pioneer of modern retail in India, Shoppers Stop Limited has been instrumental in bringingabout retail revolution in India. Since it opened its doors, the chain has become the highestbenchmark for the Indian retail industry. Since its inception in 1991, Shoppers Stop Ltd hasintroduced various retail formats in India. Apart from the flagship business of department stores ,there are also specialty stores for books, home decor, cosmetics and maternity care & infantcare.

Symbolizing the era of global recognition for Indian retailers, Shoppers Stop Ltd is the onlyIndian retailer to be shortlisted in the Retail Advertising Award category for its in-store marketing

at the retail industrys globally recognized event World Retail Congress. It is also the onlyIndian retailer to be nominated across all the categories this year. Shoppers Stop had beennamed the Emerging Market Retailer of the year at the prestigious World Retail Awards, whichtook place on 10th April '08, in Barcelona. The World Retail Congress is the most influential andhighest profile gathering of the retail industry across all retail segments across the globe.


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Shoppers Stop is Indias largest retail chain of large format department stores with 50 stores in26 cities across the country occupying an aggregate area of over 1.97 million sq.ft with anoffering of more than 400 finest international and national brands.

y 1991 1 store at Andheri @ 2800 sq ft

y 1994 First Citizen Loyalty card launched

y 1998 Only Indian member of IGDS, Switzerland

y 1999 Implemented JDA Retail ERP

y 2000 Acquired Crossword

y 2004 Diversified into food and value retailing through hypermarkets(Hypercity)

y 2005 IPO lunch to take money from market to expand the Buissness

y

2005 20 stores,

825,

000 sq ft,

4,

13,

956 first citizens,

14.7 million footfalls per annum

F Y 2004-05 Turnover Rs. 10,110 million

Retail space 1625,000 sq. ft.

Number of stores 50

Number of Associates 2,200 (1,450 Full time)

Year founded 1991

Major Share holders K Raheja Corp, ICICI, IL & FS

Customer Care Associate, MD &CEO

Mr. Govind Srikhande

Headquarters Mumbai


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Corporate profile:

Vision:To beaglobalretailerin India & maintainno.1 positionin IndianmarketinDepartment

Store Category.

Mission:Nothing but the bestTo strive & achieve nothing but the best in terms of processes , practices & deliverables.

Values: The following values help Shoppers Stop in achieving its mission & vision: We shall not take what is not ours The Obligation to Dissent (against a viewpoint that is not acceptable) We shall have an environment conducive to openness We shall believe in innovation

We shall have an environment conducive to development We shall have the willingness to apologize and/or forgive We shall respect our customer's rights We shall be fair.

Business Partners:Launched as India's premier retail chain for branded apparel and accessories,Shoppers' Stop has systematically progressed from only branded apparel to privatelabel garments to home furnishings, and finally into books and music - all focused onour customers' lifestyle requirements and aspirations. In 2000, SSL diversified intoBookstore Retailing by acquiring 51% stake in Crossword which it later increased to100% in 2005. SSL has also ventured into various categories like cosmetics throughMAC, mother and infant care through Mothercare, home solutions through Home Stop,food and beverages (F&B) through Brio and Desi Caf, gaming and entertainmentthrough Timezone, Ladies non-apparel and accessories through its luxury format,

Arcelia, and into airport retailing through its 50:50 joint venture (JV) with the Nuancegroup. SSL also has 19% stake in the hyper-mart format of HyperCity and has plans toincrease it by 51% by end of June-2010. Shopperss Stores sister store are:

Crossword BookstoresCrossword Bookstores is a chain of largest bookstores in India with 52 branches.Shoppers Stop acquired 100 per cent stake in bookstore chain Crossword. Crossword

is positioned as a lifestyle bookstore with their spacious, well laid out stores whichencourages customers ease in browsing through the merchandise of books, music,stationary and toys.

Home StopHome Stop is premium home furnishings home concept store , which offers products inhome decor, furniture and accessories, bath accessories, bedroom furnishings,mattresses, draperies, carpets, modular kitchens and health equipment.


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BrioBrio makes Shoppers Stop Ltd.'s foray into Food and Beverage which was a step towardsfranchised coffee Beverage Brio the cafe bistro is designed provides customers a place torelax, revive and reflect. It has a classic yet sophisticated ambiance. Brio has 20 outlets inselect cities. Cafe Coffee Day (CCD), the retail division of Amalgamated Bean Coffee Trading

(ABCTL),

has signed an MoU with Shoppers Stop to run its BRIO outlets.

Desi CafeDesi Caf and their operations have been taken over by Cafe Coffee Day (CCD) , the retaildivision of Amalgamated Bean Coffee Trading (ABCTL), has signed an MoU with ShoppersStop to run its Desi Cafe outlets.

Hyper CityHyperCity provides customers a wide variety of range of products for shopping in a large andmodern retail environment. It offers a contemporary range of products, sourced from both localand international markets. The product range covers: Foods and Grocery, Homeware, HomeEntertainment, Hi-Tech, Appliances, Furniture, Sports, Toys & Fashion.

M.A.C.M.A.C. and Shoppers Stop Ltd. entered into a non exclusive retail agreement with cosmeticsmajor Estee Lauder to open up M.A.C. Cosmetics stores in India. M.A.C. Makeup-Art Cosmetics- the professional brand of choice, is the first brand under the Estee lauder Group of Companiesportfolio to enter the Indian retail market. Currently there are 9 M.A.C. stores operating

ArceliaArcelia is a new retail concept aiming at the growing accessories and cosmetics segment, with a

strong emphasis on experience and indulgence and primarily caters to discerning womenshoppers. It retails cosmetics, fragrances, fine jewelry, footwear, handbags.

Mother CareMother Care and Shoppers Stop come together to introduce products for infant and toddler carewhich stocks a variety of products for mother and babies, toddlers and children till eight years ofage with the focus being on style, function and safety.

Nuance GroupNuance Group with Shoppers Stop makes an entry into airport retailing. The alliance is markedwith a joint venture with The Nuance Group AG of Switzerland, the worlds leading airportretailer. Shopper's Stop Ltd. is handling the retail operations at the duty free zones ininternational terminals. The joint venture company, called Nuance Group (India) Private Limited.is operating outlets at the International airports at Bengaluru and Hyderabad.

Hyper City-ArgosHyper City-Argos and Shoppers Stop, the two retail ventures of K Raheja group had signed amemorandum of understanding with UKs leading retail chain Home Retail group to develop the

Argos (retailer) retail format stores in India. Two years later, Shoppers Stop Ltd has informed


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Bombay Stock Exchange shall wind down and discontinue its catalogue retail operations underthe Hyper city-Argos brand.

Time zoneShoppers Stop forayed into the Entertainment sector by acquiring 45% stake in TimezoneEntertainment Private Limited which is in the business of setting up and operating Family

Entertainment Centers (FECs). It has 5 outlets in Ahmedabad , Hyderabad, Kolkata, NaviMumbai and Mumbai.

Customer Profile:Shoppers Stops customers fall between the age group of 16 years to 35 years, the majority ofthem being families and young couples with a monthly household income above Rs. 20000 andan annual spend of Rs.15000. A large number of Non - Resident Indians visit the shop forcultural clothes in the international environment they are used to which means people fromabroad are also interested in shopping in Shoppers stop. Their target customers are uppermiddle class and upper class.

Customer Rewards:Shoppers Stops customer loyalty program is called The First Citizen. The program offers itsmembers an opportunity to collect points and avail of special benefits. Currently , Shoppers Stophas a database of over 2.5 lakh members who contribute to nearly 65% of the total sales ofShoppers Stop. They also offer a co-branded credit card with Citibank for their members.

International Affiliations:Shoppers Stop is the only retailer from India to become a member of the prestigiousIntercontinental Group of Departmental Stores (IGDS). The IGDS consists of 29 experiencedretailers from all over the world, which include established stores like Selfridges (England),

Karstadt (Germany), Shanghai No. 1 (China), Matahari (Indonesia), Takashimaya (Japan), C KTang (Singapore), Manor (Switzerland) and Lamcy Plaza (Dubai). This membership is restrictedto one member organization per country/region.


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Objective of Shoppers Stop:Their main objective is to make their customer satisfy and then profit through sales , employeeadded after all every organization works to earn money which is possible through good salesand if our customers are not satisfy then it will be difficult for us. So we put our effort onretaining our customers because retaining old customers is more profitable than making new

customers. And if we analyze this statement then we come to know that their 65% of theircustomers are their first citizen customers. Today people goes for variety and shoppers stop isdoing that, they offer total 250 brands to their customers which act as their strength and helpthem retaining as well as making new customers. They believe in producing quality so they offerquality 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 tobring the worlds best retail technology, retail practices and sales to India. Currently, they areadding 4 to 5 new stores every year

Types of Retail Outlets:Shoppers Stop is known as multi-Brand retail outlet because of their verity of Products. Theyoffer various products like apparels, Accessories, Toys, Fragrances, Beauty Products,Travelling products, Home Appliances, etc. They offer various products like Apparels, Fragrance& Beauty, Home & Travel, Gift ideas. Under this they have different Categories, Brands andStyles to offer customers. They have many other showrooms of Shoppers Stop in Delhi andNCR, so we can say that they have long chain of retail outlets. They also offer online purchasingwhich means that they are using new technology to increase their sales.

Shoppers stop Ltd

Departmental

store

Speciality Retailing

HyperMarket(Hypercity)


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Brands Offered:Shoppers Stop retails products of domestic and international brands such as

Louis Philippe,Pepe,Arrow,

BIBA,

Gini & Jony,Carbon,Corelle,Magppie,Nike,Reebok,LEGO,Mattel.

Shoppers Stop retails merchandise under its own labels, such asSTOP,Kashish,LIFEVettorio Fratini,Elliza Donatein,Acropolis etc.The company also licensees for Austin Reed (London), an international brand,.


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Different brands offered under each category are given as billow:

APPARELSArrowLouis PhillipiePark AvenueParxVan HeusenZodiacStopCaliberBlackberriesScullersGivo OrlyLeeLevisPepeKillerLee CooperWranglerSpykarLifeAllen SollyProvougeWillsGASEnergeJack & jonesFCUK

UCBCKU.S PolloMangoAndMustangTommy hillfigure

JewelleryFacetCarbon

SparklesTanishqSwaroskiGiliOyzsterbaySarvoskiEstelle


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MusicPlanet MMusic World

Hair StylingHabbibs

Home DecorYaminiFour SeasonsVivaWelspunBorosilCorning WarePedriniPyren

BooksCrossword

FragrancesChristian DiorYslDavidoffJoop Diesel Lancaster NicosJ'del Pozo Myrurgia Etienne Aiger Xm

Watches

CasioEspritFossilTitanFastrackTommyhilfigureTissotArmaniCKDieselFCUKTimex

MoreletoPolice

PenCrossWatermarkParkerPieere cairden


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ShefferTommyunisar

SunglassesRay BanFastrackPolaroidTommyhilfigureCalvineclare

ShoesLee CooperRed TapeNikePumaReebokFILAAdidasFIFALottoBlack pantherPicassoWoodlandSamsonite INC5TresmodeEnroutePepperCatwalkLemon

Marketing Strategies followed by Shoppers Stop basically follows 2 marketing strategies:1. Guerrilla marketing2. Interactive marketing

1. Guerrilla marketing-; is an unconventional system of promotions that relies on time,

energyand imagination rather than a big marketing budget. Typically, guerrilla marketing tactics areunexpected and unconventional; consumers are targeted in unexpected places, which canmake the idea that's being marketed memorable, generate buzz, and even spread virally.Guerilla Marketing involves unusual approaches such as intercept encounters in public places,street giveaways of products, pr stunts, any unconventional marketing intended to get maximumresults from minimal resources. More innovative approaches to Guerilla marketing now utilizecutting edge mobile digital technologies to really engage the consumer and create a memorable


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brand experience. Principles of guerrilla marketing Guerrilla Marketing is specifically geared forthe small business and entrepreneur. It should be based on human psychology instead ofexperience, judgment, and guesswork. Instead of money, the primary investments of marketingshould be time, energy, and imagination. The primary statistic to measure your business is theamount of profits, not sales. The marketer should also concentrate on how many new

relationships are made each month. Create a standard of excellence with an acute focusinstead of trying to diversify by offering too many diverse products and services. Instead ofconcentrating on getting new customers, aim for more referrals, more transactions with existingcustomers, and larger transactions. Forget about the competition and concentrate more oncooperating with other businesses. Guerrilla Marketers should always use a combination ofmarketing methods for a campaign. Use current technology as a tool to empower your business.

2. Interactive marketing is a strategies adopted by then retailers where they allow customersto customize the product as per their preference. This strategy is mainly followed by serviceindustries like hotels but Shoppers Stop is able to carve out this facility in a retail store. Theconcept that has already made a debut at Shoppers Stop outlets in Mumbai, allows customerswho are referred to as guests to go through various stages of activity in creating their own teddybear (or other stuffed toy), including choosing a stuffed animal, stuffing it, giving it a heart,stitching, fluffing, naming and dressing it. And though the toys are priced at a premium levelranging between Rs 595 and Rs 1,295 for a stuffed animal and add-ons such as sound chips ,clothes and accessories coming at extra cost the interactive shopping experience also addson an element of entertainment for young customers and can turn into a family affair as well.

Use of CRM, ERP & SCM at Shoppers Stop:

Use of CRM, ERP & SCM at Shoppers Stop: CRM:Retail chain Shoppers Stop Ltd, is eyeing over 50 per cent sales this year from its customerrelationship management (CRM) initiatives. The company has also lined up an aggressiveexpansion plan targeting smaller towns and cities in the country. BS Nagesh, managing directorand CEO of Shoppers Stop, told FE that the company has given a new direction to its CRMinitiatives after it acquired a business intelligence software called Business Solutions abouteight months ago. The new software helps generate intelligent data from Shoppers Stopcustomer base of about 2,30,000. The company then collects this data and touches base withcustomers via direct mailers informing them of all new promotions that is currently on and alsoupdates them about the upcoming events. Shoppers Stop claims that it has taken its CRM

initiatives to a new height and now calls it's loyalty programmes Customer ExperienceManagement.

ERP:Shoppers Stop was the first few retailers to use scanners and barcodes and completelycomputerise 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.


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With the help of the ERP, they are able to open new stores faster and get information aboutmerchandise and customers online, which reduces the time in taking quick decision.

SCM: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 companyhas developed process manuals for each part of the logistics chain. These modules includevendor management, purchase order management, stock receiving systems, purchaseverification and inventory buildup, fixing of price and store tags, dispatch of stocks to the retailfloor and forwarding of bills for payment. If we talk about various brands then the answer is thatthey have a direct tie ups with different companies and companies deliver all the neededproducts to their door-step means deliver all the goods to every shoppers stop showroom. Butthere are some companies which do not provide them these services so for those they havetheir own carrier.

Use of Technology

The ardent need of new technologies can be understood no better than Shoppers Stop.

Shoppers Stop is one of those first few retail chains which introduced the use of scanners and

barcodes and also encouraged the use of fully computerized operations. It is also one of those

very few retail chains to have ERP (Enterprise Retail Planning), which is considered one of the

best retail planning system in the world. ERP helps in quick decision making process. With this

Shoppers Stop can open new stores faster and can get necessary information about

merchandise and customers online.

Shoppers Stop uses a mix of technologies and systems like JDA suite for retail business andSharePoint portal for their internal and external collaboration. It also uses Microsoft Exchange

and Communication Server for messaging. Technologies like Oracle Financials is used for

financial accounting, NetApps' SAN and NAS technologies for storage consolidation and

virtualization, Business Objects for reporting, blade servers and multi-core servers with VM

Ware for application deployment, and Wi-Fi networks in offices. For stores and distribution

centers they use operational activities with Symbol wireless scanners.

Shoppers Stop replaced its legacy system in 1998 and selected JDA. JDA solutions ensured

consistency and uniformity of fixtures across all its stores thus enhancing the efficiently andhelping the chain grow profitably as well as ensuring the companys success particularly that

of its new hypermarket business. JDA solutions have helped Shoppers Stop in many ways:

Optimizing floor space and visualizing the layout prior to construction

Inventory planning improvement through planned and systematic forecasting

Provide a high magnitude of analysis and reporting


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Efficiently manage high inventory turns and volumes

Improve the management of metrics, including service and inventory levels

Shoppers Stop also insists on the use of PeopleSoft HRMS, business intelligence solutions, e-

learning solutions, customer feedback systems and mobile point-of-sale systems.

Controllable & Uncontrollable FactorsControllable & Uncontrollable factors are those which are directly or indirectly affect the retailoutlet. The difference between these two factors is that one can be controlled by the retailer andanother cannot be controlled. The variables which are controllable can be change according tothe retailers but if we talk about uncontrollable factors then the retailer have to change him/heraccording to those factors. There are various Controllable &uncontrollable Factors. When weask about these factors to the employee of Shoppers Stop, he told us the following importantthings:

Controllable Factors of Shoppers StopPricingStore LocationManaging a business/workforce

PricingHe told us that setting price of a product is in our hands. This is our decision that how muchprofit we want to make by selling our products. Sometimes we have to set our prices accordingto the competition.Store Location

Selecting the location for the store is in the hands of retailers because before selecting thelocation 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 afterdeciding 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 thatwhat type of people they need what type of training our employees need, and what will be thesalary of our employees. All these things can be controlled by the retailer.

Uncontrollable Factors of Shoppers Stop

Government PoliciesSeasons Inflation RateTechnology Infrastructure

Government Policies Government policies or Legal RestrictionIt cannot be controlled and the big example of this is sealing of illegal shops. The taxes andduties which retailers have to pay to the government.


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SeasonsHe told us that natural climates cannot be controlled and they have to go according to that likein winters they have to change their theme and products also. He also told us that a sometimesseason plays a negative role like in rainy season their sales goes down. So these things cannotbe controlled and they can only launch new marketing strategies to attract the customers.

Inflation RateHe 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 towhich our sales is also affected. If we analyze the global market then we will see that everysector is going down except one or two. And retail sector is also not doing well these days.

Against this we cant do anything, we can only wait.

TechnologyHe told us that day by day the technology is upgrading and the problem is that the newcompetitor comes with new technology because of which they also have to upgrade theirtechnology which results more expenditure, which is not good for any business.

Competitors Analysis:In India, as we analyzed we find only few competitors for Shoppers Stop & those are mainlyforeign players and also Individual stores. The name of few competitors is given below:

LifestyleGlobusCentralPantaloonsWestside

EbonyReliance trend

Situational Analysis:Situational Analysis includes current organizational mission, current ownership andmanagement alternatives, and current goods/services category. As we have explained aboveabout the mission management alternatives, current products, so now here we have done theSWOT analysis of Shoppers Stop.

StrengthVarietyRange

Different BrandsPioneerLoyal customerLow riskGood financial position


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Presence across various segments


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WeaknessVery high prices: 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% to20% discount

Competition from standalone storesLate entry into value retailingStore makeover expenditure

ThreatsGovernment PoliciesEntrance of New PlayersHigh attritionLesser consumer spendingEntry of foreign playersUnorganized sector Independent stores

OpportunitiesAwareness about the brandsQualityYoungstersHigher disposable incomeCollaborate

Private levelsTier 2 & tier 3 citiesEnter new consumer goods segments.


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Suggestions:

They should introduce more schemes, discounts, sales to increase the sales.They should introduce Low rate Brands which will attract the middle class customers

also or brands for masses.

The stores becomes a bit messy because of a large footfall & small size of stores sothey should have larger outlets

They offer parking space only for the first citizen card holders which acts as aconstraint for many first visitors to visit the malls

Shoppers stops competitors used aggressive medium of advertisement like televisioncommercial ads, thus to gain a competitive advantage over the competitors ShoppersStop such medium of marketing.

They should also use the interactive shopping experience also adds on an element ofentertainment for young customers and can turn into a family affair as well.


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BHABANI SSL

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