FINANCIAL YEAR 2015-16 · Strictly Private & Confidential Snapshot of Shoppers Stop Formats SSL No of stores: 77 (incld. 5 duty paid airport stores) GFA: 39.47 lacs sq ft. No of stores:

Strictly Private & Confidential

FINANCIAL YEAR 2015-16

M A R C H 2 0 1 6


Indian Retail – Huge Opportunity

2

Total Retail Market Size- USD~ 550 bn

Brick & Mortar Retail is here to stay and Grow!!!

2014 2020Figures in US$ bn

Total Retail Market Size- USD~ 1150* bn

Expected Growth of 2x Expected Growth of 3x Expected growth of 15x

2


Snapshot of Shoppers Stop Formats

SSL

No of stores: 77 (incld. 5 duty paid airport stores)

GFA: 39.47 lacs sq ft.

No of stores: 2


No of stores: 74


No of stores: 19


Department Stores Business

75% Sales Contribution

14 – 15 : 163.1 lacs visitors

14 – 15 : 197.3 lacs visitors

Shoppers Stop.Com

No of stores: 17


Sales for 31st Mar,2016: Rs. 934.6 Cr

No of stores: 2


No of stores:26


No of stores: 89

Own Stores : 48


Subsidiary Companies

23% Sales Contribution

50%

48.42%

Well diversified portfolio to capture the consumer’s wallet share

Note : Above figures as of 31th Mar ,2016.1 GFA: Gross Floor Area

JV Companies

2 % Sales Contribution

SSL Stake

51%

100%

SSL Stake

CONSOLIDATED WITH SSL

SSL Sales as of 31st March 2016 : Rs.3766.15 Cr

3


Pan India Presence with Dominance in the Large Cities

4

Note : Above figures as of 31st March 2016

239 stores in 36 cities with 5.88 million sq. ft. space

across 9 store formats

Kolkata

Delhi

Jaipur

Mumbai

Hyderabad

BangaloreChennai

GurgaonGhaziabad

Pune

Noida

Amritsar

Bhopal

Aurangabad

Siliguri

Durgapur

Lucknow

LudhianaChandigarh

Indore

VijayawadaVizag

Ahemdabad

Mysore

Latur

Jalandhar

Coimbatore

SuratVadodara

Agra

Raipur

Mangalore

Meerut

City SS Dept. CrosswordHome

Stop

Mother

Care

MAC/Estee/

Clinique/

Bobbi

Brown

Hypercity Total

Amritsar 1 3 1 5

Bangalore 10 8 4 12 4 38

Chennai 3 1 1 4 9

Delhi 5 2 1 12 1 21

Gurgaon 2 4 6

Hyderabad 5 7 2 1 4 2 21

Jaipur 3 3

Kolkata 5 1 6 12

Lucknow 1 1 1 3

Mumbai 8 21 3 1 16 2 51

Noida 1 2 1 4

Pune 5 2 5 1 13

Ghaziabad 2 2

Siliguri 1 1

Durgapur 1 1

Bhopal 1 2 1 4

Ludhiana 1 1 2

Aurangabad 1 1

Indore 1 1 2

Vijayawada 1 1 1 3

Mysore 1 1

Latur 1 1

Ahmedabad 2 1 1 4

Jalandhar 1 1

Coimbatore 1 1 2

Chandigarh 1 1 2 4

Surat 1 2 3

Kalyan 1 1

Thane 1 3 2 2 8

Agra 1 1

Vadodara 1 1 2

Raipur 2 1 3

Mangalore 2 1 3

Vizag 1 1

Meerut 1 1

Kolhapur 1 1

Total 77 50 18 2 75 17 239

4


Store Additions since 1991

1

5

1 1

22 2

3

2 2

3

1

5

34

6

13

4

12

5

1 1 1 1 2 2 2

77

35

79

12

1416

1920

25

28

32

38

51

55

67

72

0

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

0

5

10

15

20

25

30

35

40

45

50

55

60

65

70

75

80

Additions 1 1 1 2 2 2 3 2 2 3 1 5 3 4 6 13 4 12 5 5

Total 1 1 1 1 2 2 2 3 5 7 9 12 14 16 19 20 25 28 32 38 51 55 67 72 77

91-92 92-93 93-94 94-95 95-96 96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16

Store Status Since Inception – SS Department Format

2000-01 Sales -

Rs.214 Crore

2015-16 Sales -

Rs.3766 Crore

10 years - 5 Stores opened Next 10 years - 27 Stores opened Last 6 years - 44 Stores opened

5


Transitioned the Shoppers Stop Brand from Premium to Bridge-to-Luxury

6

Successfully introduced a number of international brands, the new Indian aspires to own

Jack & Jones, French Connection, CK Jeans, GAS, Tommy Hilfiger & Desigual in apparel segment.

Lancome, MAC, Clinique, Estee Lauder and Bobbi Brown in cosmetics

CK, Armani & Gucci in sun glasses

Burberry, Nina Ricci, Diesel & Boss in watches

Luxury

Bridge to Luxury

Contemporary

Popular

Mass

Premium

2009

SSL

2005

Our Transition

Consistent Improvement of Product Mix and Brands Profile to Attract ‘Aspirational’ Customers

6

http://spandhan.shoppersstop.com:8082/Rajouri Pictures/002.jpg

http://spandhan.shoppersstop.com:8082/Rajouri Pictures/002.jpg


LAUNCH OF EYE STOP in Q4 FY15

77


LAUNCH OF WROGN – A Shoppers Stop Exclusive Brand

8

Launched in Q4 FY15

8


LAUNCH OF DESIGUAL – A Shoppers Stop Exclusive Brand

9

Launched in Q1 FY16

9


LAUNCH OF RS BY ROCKY STAR – A Shoppers Stop Exclusive Brand

10

Launched in Q2 FY16

10


LAUNCH OF FEMINA FLAUNT – A Shoppers Stop Exclusive Brand

11

Launched in Q3 FY16

11


Product Strategy: Sales Mix

12

2015-16

36% Non

Apps.

64%

Apparels

Diversified portfolio

Private & Exclusive Brand Sales Mix %

16.8% 16.5%

17.4%16.7% 17.0%

12.0%

14.0%

16.0%

18.0%

20.0%

2011-12

2012-13

2013-14

2014-15

2015-16

12


Trading Model Strategy : Focus on Gross Margins Optimization while Containing Working Capital Risks

13

Trading Model SegmentationConcession 15%

Consignment &

SOR 27%Bought - Out 58%

Concession 2%

Consignment &

SOR 55%

Bought - Out 43%

2007-082015-16

Reduced bought-out segment from 58% earlier to 43% whilst sustaining and growing gross margins.

Trade Working Capital ( Rs.in lacs)

Particulars 2007-08 2015-16

Net Working Capital 7,637 15,220

Chargeable Area (Sq.ft.in lacs) 16 43

Working Capital Per sq.ft. 477 355

13


Sustainable Improvements in Costs

Rent per sq.ft & % to Sales ( SS Dept. Business )

Service tax & GST

• Service tax on rent & other expenses having impact of 1.8% of sales•GST is expected to provide set-off of Service Tax against VAT.

Inventory Control

•Stock unsold for two seasons written off – Conservative inventory policy•PICS (Perpetual Inventory Control System ) in place – shrinkage below 0.5% of sales•Inventory under control at all times coupled with stock de-risking through change of trading model.

Shrinkage ( SS Dept. Business )

6666

67

7071

12.1%

12.4%12.2%

10.5%

10.0%

-

10

20

30

40

50

60

70

80

90

100

2011-122012-13

2013-142014-15

2015-16

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

0.30%0.35%

0.40% 0.38% 0.36%

0.00%

0.10%

0.20%

0.30%

0.40%

0.50%

FY12FY13

FY14FY15

FY16

14


Technology Architecture

Planned and Focused Investment in Technology

Merchandise Management System

BI / Analytics

B2B

Warehouse Management

Loyalty / CFS

Financials

Space planning

E-Commerce

POS SystemStores PICS

Assortment planning

Allocation

Hyperion

15


Better customer connect reflected in the growth of First Citizen members and their contribution

16

First Citizen Members (in ‘000)

First Citizen Contribution to Total Sales (%)

16

2,8883,296

4,126

2,503

3,736

-

1,000

2,000

3,000

4,000

5,000

FY12FY13

FY14FY15

FY16

72% 69%72% 72% 72%

0%

20%

40%

60%

80%

100%

FY12FY13

FY14FY15

FY16

16


2,1892,563

3,0533,405

3,766

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

FY12FY13

FY14FY15

FY16

Resulting Increase in Revenue

Sales (Rs. in Cr. ) Annual LTL Growth

LTL Sales Growth for SS Dept. Store for FY16Stores > 5 Years - 8.0%Stores < 5 Years - 9.8%

LTL Growth (Quarter wise FY16)

6.5%

7.4%

10.2%

5.0%8.5%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

FY12 FY13 FY14 FY15 FY16

12.7%

17.4%

5.90%

0.1%

-2.0%

3.0%

8.0%

13.0%

18.0%

23.0%

28.0%

Q1-FY16 Q2-FY16 Q3-FY16 Q4-FY16

17


975 1,031 1,083 1,118 1,136

-

500

1,000

1,500

2,000

2,500

FY12FY13

FY14FY15

FY16

2,313 2,481 2,667 2,615 2,791

-

1,000

2,000

3,000

4,000

5,000

6,000

FY12FY13

FY14FY15

FY16

23% 23% 22%23%

26%

10%

15%

20%

25%

30%

FY12FY13

FY14FY15

FY16

402468

365467 445

-100200300400500600700800

FY12FY13

FY14FY15

FY16

Resulting in greater customer loyalty, higher ticket size and ASPs

Footfalls (in lacs) Conversion rate (%)

Average Selling Price (Rs)Average Transaction Size (Rs.)

FY16-LTL Volume 7.2%

LTL storesdegrew by 7.3%

LTL storesgrew by 8.9%

LTL storesgrew by 7%

LTL ASP grew by 1.3%

18


….. and Better Returns

Asset turnover ratio ( Total Assets without Group Investment)

Operating Cash Flows ( Rs. in Cr.)

ROCE % ( Without Group Investment )

Consistent bottom-line coupled with superior resource management has resulted in steady returns

RONW % ( Without Group Investment )

Total Investment in the Business from FY11 – FY 15 : Rs. 511 Crs.

5.1

4.3

4.7 4.7 4.8

3.5

4

4.5

5

5.5

FY12FY13

FY14FY15

FY16

22.9%

14.0% 14.1% 14.6% 15.5%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

FY12FY13

FY14FY15

FY16

136.0

170.0

81.1 110.0140.9

-

50.0

100.0

150.0

200.0

FY12FY13

FY14FY15

FY16

17.5%

10.6% 10.5%

14.1% 15.70%

0.0%

5.0%

10.0%

15.0%

20.0%

FY12FY13

FY14FY15

FY16

19


OMNI CHANNEL STRATEGY

20


Key Factors Driving Digital Commerce Growth

• By 2020, India will have 40-50% internet penetration accessed from all kinds of devices viz. desktops, tablets, mobiles, TV.

• The penetration of online shopping amongst the internet users will grow from 20% (2014) to 40% (2020) thanks to improvements in

digital connectivity (3G / 4G) and smartphone growth.

• More than 80% of the online population will access the internet via smartphones & tablets. Mobiles will make internet accessible to the

rural masses driving online commerce.

Source: Motilal Oswal, Google

600 MN380

MN2012

2020

150 MN50 MN

2012

2020

Mobile Phone Users

PC/Laptop Users

Smartphone penetration will grow from 40M to 550M

0

100

200

300

400

500

600

700

800

2014 2015 2016 2017 2018 2019 2020

Internet Penetration In India (in Millions)

Internet Users Mobile Internet Users

2121


Global Benchmarks

Department

Store

National

eCom

Penetration %

Online

Sales %

John Lewis 15% 28%

Macys 12% 15%

Nordstrom 12% 14%

Neiman Marcus 12% 20%

Kohls 12% 20%

• Digital channels have led to a double digit growth while pure-play store sales have grown in single digit.

• Omni-Channel customer journeys such as Click N Collect having an online & offline touch-point account for 60-70% of digital sales.

• While digital sales account only for 10-20% of overall sales, customer journeys show a digital touch-point on 75% of the overall orders.

Source: Boston Consulting Group

22


Strategic Objective

2015

Departmental Store

+

Online

Store

2016

Multichannel Retailer

2017

Omnichannel Retailer

Phase I Phase II Phase III

• Invest 50-60 Crores in OmniChannel technology

• Phase I Launch on SAP Hybris technology platform targeted for End-of-Year 2015

• Strategic tie-up with Snapdeal to be the anchor Department Store on Snapdeal.com

• Generate 10% Revenue From Digital Channels In Next 3 Years

• Take HomeStop, HyperCity, Crossword OmniChannel

23


Provide a seamless personalized shopping experience

• EVERYWHERE

• EVERYTIME on

• EVERYTHING

with

• ONE Customer Identity

• ONE Inventory View

• ONE Order History

Customer Value Proposition

24


Brand Campaign - 2013

2525


Brand Campaign - 2013

2626


Private Brand Campaign - 2014

27



28



29



30



31


Shoppers Stop on Social Media

32

8.2 mns fans

1.30 mns views for April to

June-2014

134,649 followers

32


Luckiest Boy Happiest Boy Most Special Boy

Smartest Boyfriend Most Painful Questions

http://www.youtube.com/watch?v=RtmWLHCUR0Ihttp://www.youtube.com/watch?v=ziV1EsUSsXI

http://www.youtube.com/watch?v=uqp9G-LwBQc http://www.youtube.com/watch?v=4QnIkWEmmCs http://www.youtube.com/watch?v=2s2Rsx1RQXw

Our Viral Ads

33

http://www.youtube.com/watch?v=RtmWLHCUR0I

http://www.youtube.com/watch?v=ziV1EsUSsXI

http://www.youtube.com/watch?v=uqp9G-LwBQc

http://www.youtube.com/watch?v=4QnIkWEmmCs

http://www.youtube.com/watch?v=2s2Rsx1RQXw

Strictly Private & Confidential34

Customer Satisfaction Index (CSI) Associate Satisfaction Index (ASI) (on scale of 5)

Partner Satisfaction Index (PSI) (on scale of 5)

Shoppers Stop Ltd. – Satisfaction Index

80 79 80 80

81

102030405060708090

100


3.954.11 4.12 4.13

4.21

3.00

4.00

5.00


4.14 3.85 4.07

4.31

4.20

3.00

3.20

3.40

3.60

3.80

4.00

4.20

4.40


34


Best in Class Corporate Governance and Management Profile

35

• Independent Directors on the Board of the company

• Professionally managed with ownership and management clearly demarcated

• ESOPs issued to Associates.

• Internal Audit idone by KPMG and external audit by Deloitte Haskins & Sells

• Ranked as one of the TOP 20 MID CAP Companies in 2011. These 20

companies have been selected based on the weighted score on four

parameters : Sales, Net Profit, Market CAP & Dividend.

• Has Been Chosen as “India’s Most Respected Retail Company” by the

prestigious Business World Magazine for the fifth consecutive year.

Board of Directors & Key Executives

Mr. Deepak Ghaisas (10yrs)

Mr. Nitin Sanghavi (12yrs)

Mr.Nirvik Singh (7yrs)

Mr. C.L. Raheja

Mr. Neel Raheja

Mr. Ravi Raheja

Mr. B.S.Nagesh (24yrs)

Mr. Govind Shrikhande (15yrs)

MD

Note : Yrs represent length of association with the company

Ms. Abanti Sankaranarayanan (1yr)

Mr. Manish Chokani (1yr)

Mr.Gareth Thomas

35


Corporate Social Responsibility

36

Giving Back to Society

‘Shoppers Stop’ , over the years , has contributed in its own way to make the Planet a

better place .

In our continuing endeavor to contribute to society , one of the novel practices that we have

adapted across all stores, is to celebrate the ‘ Store Birthday ‘ with the ‘Underprivileged ‘

within the store catchment .

Birthday celebrations earlier was all about fun time at the stores . Now the celebration has

moved outside the store : at Old Age homes, at Homes for the abandoned Girl Child, Home

for Destitute’ s & so on .

The Store team does its own bit by spending the day with this cross-section: touching

their lives, celebrating with them & being a part of their life .

This engagement continues & is not a one day affair : the team is in continuous touch with

these institutes & keep contributing in its own way.

A glimpse into some of the initiatives .

36


Corporate Social Responsibility

37

At Store Level Visit Old age Home

Blood Donation Camp

Spending time with underprivileged children.

A day at the Orphanage.

At Company Level Retail education - building infrastructure and creating

teaching/learning facilities, especially for the under-privileged.

Skill development - Education for the Physically challenged

Contributions - To permitted governmental and private charities and foundations that are active in the CSR space.

Adoption of artisans: Support and promote the crafts, by giving inputs and designs, fair remuneration and foundation to market artisans’ skills.

Spend - 1.25 crs in FY16

37


Shoppers Stop Limited Financial Summary –Q4-2015-16

Rs in lacs

Note : Figures have been regrouped for Presentation purpose.

8%

6%

8%

2%

5%

(1)%

Particular Q4-2015-16 Q4-2014-15

Retail Turnover 100,528.9 92,850.1

Retail Sales 98,847.4 91,485.1

Margin on Sales 32,746.3 30,762.5

Margin on Sales % 33.1% 33.6%

Other Retail Operating Income 1,681.5 1,365.0

Operating expenses 29,196.9 27,023.6

Operating expenses % 29.5% 29.5%

Operating Profit (EBIDTA) 5,230.9 5,104.0

Operating Profit (EBIDTA) % 5.3% 5.6%

Finance Charges (Net) 911.1 788.7

Depreciation 2,580.4 2,661.0

PBT 1,739.4 1,654.3

PBT % 1.8% 1.8%

Tax 722.2 624.3

Profit After Tax 1,017.2 1,030.0

Profit After Tax % 1.0% 1.1%38


Consolidated Financial Summary –Q4-2015-16

Rs in lacs

Consolidation includes:

• Shoppers Stop Limited• HyperCITY Retail (India) Ltd..• Crossword Bookstores Ltd.• Timezone Entertainment Pvt. Ltd.• Nuance Group (India) Pvt. Ltd.


5%

(4)%

7%

9%

(129)%

(131)%

(129)%

Particular Q4-2015-16 Q4-2014-15


Retail Sales 126,053.6 117,871.5

Margin on Sales 40,200.6 38,219.4







Finance Charges (Net) 2,197.3 1,291.2


PBT (2,008.1) (879.0)

Profit Before Tax % -1.6% -0.7%

Profit/(Loss) from Property Option - 7,335.0

PBT (After Property Option Profit) (2,008.1) 6,456.0

PBT % -1.6% 5.5%

Tax 722.2 624.4

Minority Interest 1,733.1 (2,361.3)

Profit After Tax (997.2) 3,470.3

Profit After Tax % -0.8% 2.9%

39


Shoppers Stop Limited Financial Summary –2015-16

Rs in lacs


11%

9%

9%

15%

20%

Provision for diminution in value of investment in a

Joint Venture

Particular 2015-16 2014-15


Retail Sales 376,615.5 340,523.8

Margin on Sales 126,011.6 115,764.1









PBT ( Before Exceptional Item) 8,356.5 6,956.3

PBT% 2.2% 2.0%

Exceptional Item 2,381.0 -

PBT 5,975.5 6,956.3

PBT % 1.6% 2.0%

Tax 3,457.9 2,882.7

Profit After Tax 2,517.6 4,073.5

Profit After Tax % 0.7% 1.2%

40


Consolidated Financial Summary –2015-16

Rs in lacs

Consolidation includes:

• Shoppers Stop Limited• HyperCITY Retail (India) Ltd..• Crossword Bookstores Ltd.• Timezone Entertainment Pvt. Ltd.• Nuance Group (India) Pvt. Ltd.


8%

10%

9%

9%

(95)%

(111)%

17%

Particular 2015-16 2014-15


Retail Sales 495,406.7 455,299.9

Margin on Sales 156,886.4 145,487.1









PBT ( Before Exceptional Item) (889.5) (1,068.4)

PBT % ( Before Exceptional Item) -0.2% -0.2%

Profit/(Loss) from Property Option - 8,852.0

PBT (After Property Option Profit) (889.5) 7,783.6

PBT % -0.2% 1.7%

Tax 3,457.9 2,882.8

Minority Interest 4,552.1 (660.4)

Profit After Tax 204.7 4,240.4

Profit After Tax % 0.0% 0.9%

41


Shoppers Stop Ltd – Balance Sheet

42

Rs.in lacs


SSL Debt : 590 CrHypercity Debt : 229 Cr

Particulars 2015-16 2014-15

Debt Equity 0.75 0.67

Asset Turnover Ratio (Without Invt. In Group Co.) 4.80 4.69

Current Ratio 0.99 0.98

PARTICULARS Mar'16 March'15

EQUITY AND LIABILITIES

SHAREHOLDERS' FUNDS

Share capital 4,201.9 4,168.4

Reserves and surplus 74,340.8 72,360.4

Net Worth 78,542.6 76,528.8

NON CURRENT LIABILITIES

Long-term borrowings 32,321.4 22,535.7

Long-term provisions 167.9 955.8

Total Non Current Liabilites 32,489.3 23,491.5

CURRENT LIABILITIES

Short-term borrowings 14,448.9 23,255.3

Trade payables 37,064.0 33,135.4

Other current liabilities 27,804.2 21,443.7

Short-term provisions 468.1 1,175.4

Total Current Liabilites 79,785.1 79,009.8

Total 190,817.1 179,030.1

ASSETS

NON CURRENT ASSETS

Total Fixed assets 65,943.4 61,055.8

Non current investments 40,471.2 40,649.5

Long term loans and advances 36,664.0 34,229.2

Total Non Current Assets 143,078.5 135,934.4

CURRENT ASSETS

Inventories 38,587.1 32,961.3

Trade Receivables 2,319.7 2,233.5

Cash and cash equivalents 528.3 490.5

Short term Loans and advances 5,374.8 6,255.2

Other current assets 928.6 1,155.1

Total Current Assets 47,738.5 43,095.7

Total 190,817.1 179,030.1 42


70

91 97

130140

147161

178

0

20

40

60

80

100

120

140

160

180

FY11FY12

FY13FY14

FY15FY16

FY17 - Forecast

FY18 - Forecast

2,2873,094 3,394

3,918 4,165 4,329 4,404 4,615

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

FY11FY12

FY13FY14

FY15FY16

FY17 - Forecast

FY18 - Forecast

Targeting Higher Growth to Build on the Existing Platform

43

Total Gross Floor Area (in 000s) Stand Alone Stores

• Robust pipeline of new stores

43


1 1 37 9 12 12 15 16 19 22

0

10

20

30

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016E 2017E

Proof of Concept Established, Business Model Refined & Roll Out Planned for Expansion

Focused store rollout strategy

• Total Retail space 1.3 Mn sqft. with 17 stores operation in 10 cities.

No of stores CHAIN EXPANSION

• Cluster based growth strategy, with Core, Mid sized and Compact stores

– Existing stores after right sizing to be of 75-100 K sq ft.

– New stores of 50-60 K sq ft to drive assortment, differentiation and profitability.

– New compact size format of 25-30 K sq ft for penetration & leveraging resources.

4444


Pan India Presence with Dominance in the Large Cities

• 17 stores in 10 cities with 1.3 million sq ft of

space.

• Plans to expand retail outlets based on cluster

approach.

• Average footfalls per month: 1.6 Mn, indicating

strong customer pull.

Janakpuri

Mumbai (4)

Hyderabad (2)

Bangalore (3)

Pune (2)

Ahmedabad

Amritsar

Hypercity

Bhopal

DC Location

Note : Above figures as of 31st Mar 2016

Baroda

Noida

City Hyp Stores

Mumbai 4

Pune 2

Ahmedabad 1

Bangalore 3

Hyderabad 2

Amritsar 1

Bhopal 1

Baroda 1

Noida 1

Janakpuri 1

Total 17

4545


Private Label 20%

Branded80%

Business Model

Department Mix % Key Driver

Food & Groceries 63-65% Footfall driver

General Merchandise

[Home, Furniture, CDIT]

19-21% Value & Margin

driver

Apparels & Accessories 15-17% Fashion, Value &

Margin driver

A strong own brand portfolio

Food General

Merchandise

Fashion

15% of Sales 6% of Sales 56% of Sales

Sales Contribution

4646


Positioning & Product Strategy

Target customers: 21-45 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.

“India’s Most Admired Hypermarket” at

Images Retail Awards 2012.

“Best promotional/Shopper Marketing

campaign” at Loyalty Summit Awards Feb’15.

“Best Use of Social Media &

Communication Strategy” at India Retail &

E-Retail Awards 2015.

“Images Most Admired DIGITAL

MARKETING CAMPAIGN” at Images Retail

Tech Awards 2015.

Positioning

Product Offering

FOOD

Grocery

Readyfood

InstantFood

Non -FOOD

Homecare

Personal

Perishable

Fruits & Vegetables

Just-in Non-

Veg Section

Milk Products

Freshly

Baked

Integrated CDIT

SmallApplicances

Personalcare

Home

Home Ware

Home Decor

Home Needs

Furniture

Dining

Bedroom

Living Room

Kitchens

Sports

Health & Fitness

Inddor Games

Outdoor Games

Cycles

Toys

Infants

Soft Toys

Action

Figures

Learning

Electronics

Ride Ons

Fashion

Clothing

Footwear

Accesories

Jewellery

4747


Back End Operations

Majority of product written

off on completion of 12/15

months

Quarterly count cycle ,

enabling reliable inventory

and Shrinkage monitoring

Supply Chain and Systems Back end operations and IT Best Practices and Policy

Operates multi channel

supply chain for various

product categories

Imports account for 2.5% of

General Merchandise

All DC operations on Scanner

based picking

Furniture and CDIT products

are home delivered

Reliable Inventory –

Merchandize Management

System

Dynamic Auto-replenishment

system, enabling consistent

high availability of stocks

E-Payment for 99%

transactions

4848


YTD – FY16

4949


Footfalls, ASP , Conversion and Average Ticket size

Footfalls (In Lacs)

Average Selling Price (Rs)Average Transaction size (Rs)

Conversion rate (%)

Hypercity Sales Growth YTD-2015-16:-Sales Growth - 3.4% LTL Sales Growth - 1.3%

Hypercity Sales P. Sq.ft. on Chargeable Area YTD-2015-16 :Sales per sq.ft. in Rs. * 8,089LTL Sales per Sq. ft. in Rs * 8,761

* LTL sales psf is after excluding major concessionaire/ sub-lease area.

198.23 188.12

40.00

80.00

120.00

160.00

200.00

YTD FY15 YTD FY16

44.5%46.8%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

YTD FY15 YTD FY16

1,106 1,142

600

700

800

900

1,000

1,100

1,200

YTD FY15 YTD FY16

86.5 89.1

-

15.0

30.0

45.0

60.0

75.0

90.0

105.0

YTD FY15 YTD FY16

5050


HyperCITY Financials – YTD - 2015-16

Rs.in lacs

• Numbers have been regrouped for analytical representation

• LTL sales PSF growth : 4.8%

• LTL Opex Growth : 1.2%

Particular YTD FY16 % Sales YTD FY15 % Sales Growth%

Retail Sales (Including VAT) 100,630 107.7% 97,593 108.0% 3.1%

Retail Sales (Net of VAT) 93,460 100.0% 90,391 100.0% 3.4%

Gross Margin 20,981 22.4% 20,350 22.5% 3.1%

DC Cost 889 1.0% 794 0.9% 12.0%

Shrinkage 829 0.9% 443 0.5% 87.0%

Margin on Sales 19,263 20.6% 19,113 21.1% 0.8%

Store Operating Expenses 20,130 21.5% 18,685 20.7% 7.7%

Other Retail Operating Income 2,939 3.1% 2,723 3.0% 7.9%

Store EBIDTA 2,072 2.2% 3,151 3.5% -34.2%

Service Office / Pre-ops Exp. 4,030 4.3% 3,925 4.3% 2.7%

Loss / (Profit) on sale of Property options - (8,852) -9.8%

COMPANY EBIDTA (1,958) -2.1% 8,078 8.9% -124.2%

Depreciation 2,909 3.1% 2,879 3.2% 1.1%

Finance Charges 4,423 4.7% 3,852 4.3% 14.8%

PAT (9,290) -9.9% 1,348 1.5% -789.3%

Sources of Funds 31st Mar 16

Net worth 313

Loans from Shareholders / Group Co's 14,500

Loans 22,811

Total 37,624

Application of Funds

Fixed Assets 16,753

Currents Assets , Loans and Advances 32,461

Less : Current Liabilities and Provisions 11,590

Net Current Assets 20,871

Total 37,624 5151


Our Stores

525252


SS Department Stores

5353


SS Department Stores

54


Home Stop

55


Crossword Book Stores

5656


Mother Care

57


MAC

5858


ESTEE LAUDER

59


CLINIQUE

6060


HyperCITY Stores

6161


New HyperCITY Compact Store – at Whitefield Bengaluru

6262


New HyperCITY Compact Store – at Whitefield Bengaluru

6363


T H A N K Y O U

DISCLAIMER : Certain statements in this release concerning our future growth prospects are forward-looking statements within the meaning of

applicable securities laws and regulations , and which involve a number of risks and uncertainties, beyond the control of the Company, that could

cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements

include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition including

those factors which may affect our cost advantage, wage increases, our ability to attract and retain highly skilled professionals, political instability,

legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our intellectual property and general economic

conditions affecting our industry. Shopper’s Stop Ltd. may, from time to time, make additional written and oral forward looking statements, including

our reports to shareholders. The Company does not undertake to update any forward-looking statement that may be made from time to time by or on

behalf of the company. The Company also expects the media to have access to all or parts of this release and the management’s commentaries and

opinions thereon, based on which the media may wish to comment and/or report on the same. Such comments and/or reporting maybe made only

after taking due clearance and approval from the Company’s authorized personnel. The Company does not take any responsibility for any

interpretations/ views/commentaries/reports which may be published or expressed by any media agency, without the prior authorization of the

Company’s authorized personnel.

64

Documents

FINANCIAL YEAR 2015-16 · Strictly Private & Confidential Snapshot of Shoppers Stop Formats SSL No of stores: 77 (incld. 5 duty paid airport stores) GFA: 39.47 lacs sq ft. No of stores: