INTERIM INTERNSHIP

REPORT

ON

S HOPPERS S TOP L IMITED

SUBMITTED TO: SUBMITTED BY: MS. LAVEENA MEHTA ANSHIL KAPOOR

CUN120501009

BBA 5-6 (X)

Acknowledgement

The toughest of endeavors in this world is not possible without the support of a helping hand which guides and motivates a person to take on any challenge head on. Inputs from such helping hand are always like very essential because more often or not certain mistakes which go unnoticed from our eyes. We are indebted to our Prof. Pravin Patil, ICFAI Business School, Pune for giving us such a nice opportunity to work something related to practical exposure of retail industry & extending his untiring guidance to us, by constantly discussing the project matter and helping us in clarifying our thinking in several pertinent issues and providing a meaning full insight into the subject.

Executive Summary

The Indian retail industry is now beginning to evolve in the line with the transformation that has swept other large economies. It witnesses tremendous growth with the changing demographics and an improvement in the quality of life of urban people. The growing affluence of India’s consuming class, the emergence of the new breed of entrepreneurs and a flood of imported products in the food and grocery space, has driven the current retail boom in the domestic market.

The concept retail which includes the shopkeeper to customer interaction, has taken many forms and dimensions, from the traditional retail outlet and street local market shops to upscale multi brand outlets, especially stores or departmental stores.

Hence, focusing on two aspects of retail marketing i.e. Store Retailing and Non-store Retailing. Store Retailing as the departmental store, which is a store or multi brand outlet, offering an array of products in various categories under one roof, trying to cater to not one or two but many segments of the society and Non-store Retailing as the direct selling, direct marketing, automatic vending.   

I NTRODUCTION

The foundation of Shoppers' Stop was laid on October 27, 1991 by the K. Raheja group of companies, one of India's biggest hospitality and real estate players. The Group crossed yet another milestone with itslifestyle venture-Shoppers' Stop.

With its immense expertise in the service industry and creditability, Shoppers' Stop today boasts of 27 retail outlets across the country and is planning to spread its wings with futuristic expansion plans to meet the challenges of the retail industry. A benchmark for the Indian retail industry to follow, Shoppers' Stop has progressed from a single brand shop to a Fashion & Lifestyle store for the families. Shoppers' Stop is a household name, known for its superior quality products, services and above all, a complete shopping experience.

Shoppers' Stop was the first to redefine shopping experience and creating a niche for itself in the service industry. As India's first specialty chain with outlets in Mumbai, Bangalore, Delhi, Hyderabad, Jaipur and Chennai, Shoppers' Stop offers a complete range of garments and accessories for the entire family. More than 25,000 customers walk into Shoppers Stop everyday to feel the experience of shopping.

Andheri was the first store to be opened in India. The initiative of this store was taken by B.S.Nagesh at a time when the concept of retail industry was just coming into the market. As on today, the current investors in Shoppers‘ Stop are ICICI, IL&FS Investments and Zodiac

clothing. Their combined shareholding in Shoppers Stop is 19% while 79% is held by Raheja Group & balance 2% is held by its employees.

SHOPPERS STOP LIMITEDis one of the leading retail stores in India. Shoppers Stop began by operating a chain of department stores under the name “Shoppers’ Stop” in India. Shoppers Stop has 65 stores across 32 cities in India.

Shoppers Stop retails stuff like ladies watches, men's watches, artificial jewelry, fine jewelry, handbags, fragrances, cosmetics, men's footwear, women's footwear, home furnishing and decor products.

Shoppers Stop launched its e-store with delivery across major cities in India in 2008. The website retails all the products available at Shoppers Stop stores, including apparel, cosmetics and accessories. Shoppers Stop opened stores in Amritsar, Bhopal and Aurangabad.

Shoppers Stop retails products of domestic and international brands such as Louis Philippe, Pepe, Arrow, BIBA, Gini & Jony, Carbon, Corelle, Magppie. Nike , Reebok, LEGO, and Mattel. Shoppers Stop retails merchandise under its own labels, such as STOP, Kashish, LIFE and Vettorio Fratini, Elliza Donatein, Acropolis etc. The company also licensees for Austin Reed (London), an international brand, who’s men's and women's outerwear are retailed in India exclusively through the chain. In October 2009, Shoppers Stop has bought the license for merchandising Zoozoo the brand mascot for Vodafone India.

PROMOTERS

K Raheja Corp is a success story spanned across decades and continues to achieve higher targets relentlessly for quality performance and service in diverse fields of real realty business, hospitality sector and retailing outfits. The group has made an impact on the supply side of the modern day living. A style that has been the dream of new class of consumers, a style encompassing the whole range of consumption pattern of the young and the upcoming consumers that has become synonym with the brand K Raheja Corp. The group has pioneered the trend of setting world class hotels and convention centers across the country with enhanced facilities to meet the business and leisure needs of the international and domestic traveler.

The higher standards set by the group in its pursuit to position India on par with the developed economies of the world and with a vision to be and remain at the commanding height of Real Estate Business.

VISION

 To be a global retailer in India and maintain its No.1 position in the Indian market in the Department Store category. Values that help us in achieving our mission and vision:

We will not take what is not ours. The obligation to dissent (against a viewpoint that is not acceptable). We will have an environment conducive to openness. We will believe in innovation. We will have an environment conducive to development. We will have the willingness to apologies and forgive. We will respect our customers' rights. We will create an environment of trust. We shall be fair. We will be socially responsible.

Introduction to the particular firm/division where internship is being undertaken

Shoppers Stop, premier fashion and lifestyle destination, opened its first store offering over 200 brands under one roof in delhi in Rajouri garden , Newdelhi.

The new store was inaugurated by actor Ira Dubey and Govind Shrikhande, Customer Care Associate and Managing Director, Shoppers Stop Limited.

The store marks Shoppers Stop's 56 store in the country offering options in fashion apparel, cosmetics, accessories, kids range, fine and fashion jewellery, home decor and much more. This new store of Shoppers Stop brings to Chandigarh an unprecedented bridge-to-luxury shopping experience spread over 52,000 sq. ft. across three distinct levels.

Home Stop, C.K. Nair, Customer Care Associate &COO, Home Division, Shoppers Stop Limited,said, "Home Stop is the ideal one-stop shop for any and every requirement for one's home. Reputed brands are available across every category to ensure that each customer's living space is luxurious, elegant and a reflection of their style statement."

Type of internship, job required, stipend or incentive offered.

My job in Shoppersstop is a Fashion associate (F.A.) . At this post I am required to make direct interaction with the customer and help the customer to find out what the customer really want and their needs and we should be specific about that and we came to know about their requirement by Probing with them and according to their need we show them their desired products and once the customer is satisfied with the product we will try to make Cross selling and Up selling. Example .

After 12 months on job training on floor as a Fashion Associated we are eligible for appearing Baby Kangaroo assessment and if we clear this assessment we are promoted as a department manager in Shoppersstop.

Stipend:- As management earlier told us that we are getting INR 12000 per month excluding P.F., Medical & Pension and above that if we are successful in completing our target given by the Shoppersstop we are rewarded with incentive which is according to the percentage of complication of given target.

Main Competitors & brief Competition Analysis

In India, as we analyzed we find only few competitors for Shoppers’ Stop & those are mainly Foreign players and also Individual stores. The name of Few competitors is given below:-

Lifestyle: -It is a Indian fashion retailer chain promoted by the Landmark Group. It started in the year 1999 with its first store in located in Chennai. It has rapidly grown to a major retail store in India. Lifestyle Stores is headquartered at Bangalore, Karnataka. It now operates in 26 major cities of India with more than 41 stores

Globus:-Globus is a retail clothing store chain, based in Mumbai, India. Its part of the Rajan Raheja Group. As of April 2012, the chain has 35 locations in 22 cities in India.Globus was founded in January 1998. Its first location (at 35,000 square foot store) opened in Indore in June 1999, followed by two locations in Chennai. Its Mumbai flagship location opened in November 2001. By May 2008 the chain had expanded to 24 stores, and started a push to greatly expand the number of locations. The chain has previously announced bold plans to expand to a much larger number of stores, such as 150

Central:- Central has outlets in Ahmadabad, Bangalore, Cochin, Hyderabad, Pune, Mumbai, Navi Mumbai, Vadodara, Gurgaon, Indore, Nagpur, Patna, Jaipur, Surat, Visakhapatnam . It has a clothes and food chain with 3 Amigos, Slambay, Baskin Robbins among many others and has three main restaurants like Bombay Blues and Copper Chimney. Bangalore Central is a shopping mall, situated in Bangalore, India.

Pantaloons:- Pantaloons Fashion & Retail Limited is an Indian premium clothing retail chain. The first Pantaloons store was launched in Gariahat, Kolkata in 1997. As of November 2013, there are 76 Pantaloons stores in 44 cities. Pantaloons was previously controlled by the Future Group, but has now been taken over by Aditya Birla Nuvo Limited (ABNL). According to the Brand Trust Report 2014, a study conducted by Trust Research Advisory, Pantaloons featured among 100 most trusted brands in India

Westside: - Trent is the retail arm of the Tata group. Started in 1998, Trent operates Westside, one of the many growing retail chains in India based in Mumbai, Maharashtra and Landmark, a bookstore chain with Brick and mortar stores in various locations of India.

No. of employees: managerial, supervisory and skilled

ORGANISATION – SHOPPERS STOP Ltd.

LOCATION - RAJOURI GARDEN , NEW DELHI.

TOTAL NO. OF EMPLOYEES - 250

AT MANAGERIAL LEVEL - FRONT END -25

BACK END -25

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50

SEMI SKILLED - CCA- 200 IN TOTAL

Project Decided And Undertaken, Brief Objectives And Research Design.

Project decided by chitkara university to give better output employees to shoppers stop limited so that they can boost up their sales with skilled staff members who can target customers need and provide them with better services and full fill their needs to get better customer satisfaction.

Their objective is to enroll all the skilled employees as a department head so that they can motivate and explain their sub ordinates how to work better and achieve customer satisfaction by completing the daily objective to fulfill organizational goal.

We will be working as a fashion associate for 12months on floor after that we can appear for B.K. test to get to the post of department head in shoppers stop limited.

We will going to research on the problem area to make it possible 100% conversion ratio.

To check our performance that we are meeting organizational objective there they had a score card which tell you about your performance and your over all objective archived .

Sample and survey design for the project

Details Of Actual Work Undertaken Till Date And Timeline.

1. Sales which were in degrowth when I have joined i.e. 40-50% achievement and degrowth of near about 30 -40 % compared to last year Those sales are now at hikes now our department is achieving more than 130% and we are on10% growth as compared to last year, all this is achieved in just 3-4 months.

2. Conversion ratio of the normal sale associate is 3-4 out of 10We fashion associates are taking it as our opportunity and giving 80% of conversion ratio we used to convert 8 customers out of every 10 we attend.

3. I have analyzed all the problem area which yet to be improved for that I am doing new innovation to promote my team

4. Now my department manager made me a team leader to lead my team of home section covering 20 sale associate and by giving a positive response we as a team surpass our target and till date our achievement is more than kids section which always used to be on the top

FINANCIAL STATEMENT ANALYSIS OF THE COMPANY

The Raheja-owned Shoppers Stop posted posted 2.8 times growth in its profit

after tax in December quarter of financial year 2015 at Rs 14 crore as compared

to Rs 5 crore in the corresponding quarter of previous financial year.

The company's turnover grew 10 per cent during Q3 of FY15 at Rs 1,214.80

crore as compared to Rs 1,107.26 crore during the corresponding quarter of

previous financial year.

Shoppers Stop department stores recorded 0.8 per cent like to like growth in Q3

of FY15. Like to like growth means growth coming from existing stores which are

in the operations for a year or more.

"Huge adverising by e-commerce firms was a element of disruption," said

Govind Shrikhande, MD of Shoppers Stop.

Shoppers Stop's subsidiary Hypercity achieved break even at the net level due

to sale of properties it owned. The company posted a net profit of Rs 5 lakh in

Q3 of FY 2015 as compared to Rs 25 crore of net loss in the corresponding

quarter of previous financial year.

Hypercity posted 6.5% growth during Q3 of FY 2015.

Strategies (Marketing, Financial & HR) AdoptedBecause customers come first at Shoppers Stop, every employee is a Customer Care Associate, right from the Vice Chairman to the floor staff. Associates start each day with the anthem 'Had Se Aage' written by Gulzaar Sahab, sung by Sonu Nigam and composed by Ram Sampat. To keep such highly-involved workforce engaged and motivated, Shoppers Stop has introduced many people initiatives.

Parichay – The Induction: This is an induction programme that comprises of classroom training, job training and also introduces the family of the associates to the organisation.

Learning and Development Centre – The Learning and Development Centre is responsible for supporting associates in their development needs as well as providing the organisation with people talent for various initiatives.

Jo Jeeta Wohi Sikandar – Recognises and lauds performances of associates who have gone beyond the call of their duty.

The Baby Kangaroo Programme – Recognising High Potential, this is the first program in the retail sector which offers a structured growth path to associates. The programme has won many accolades in the industry and one of them is the prestigious “DMA – Erehwon Award for Innovative HR Initiatives”.

Measurement of Associate Satisfaction – We actively measure associates’ satisfaction by conducting an annual online survey to determine the Associate Satisfaction Index (ASI). All associates participate, across levels, making this an important tool for continuous improvement.

FUTURE PLANS OF THE COMPANY & ROAD MAP

Buoyed by rapid growth in the retail industry, K Raheja Group-owned Shoppers

Stop plans to open 24 stores in the country by FY15, a senior company official

said.

"We plan to open 24 new stores in the next three years. To start with, we would

be opening 8-9 Shoppers Stop stores in the current fiscal," Group Chief Financial

Officer CB Navalkar told PTI here.

Presently, the company has 68 stores across the country, with a total retail

space of about 4.3 million square feet.

"The retail industry is growing by around 30-35% every year. We estimate that

by FY15, we will have 78 stores operational with a total retail space of 6.8

million square feet. Apart from expanding in metros, we will also enter Tier-II

cities," he said.

Apart from the Shoppers Stop departmental stores, the company has five

speciality retail formats like Home Stop (home furnishing), Mothercare (baby

care), Crosswords(books & music), Estee Lauder (cosmetics) and Mac

(cosmetics).

The company is also present in the hypermarket space at nine locations across

the country through its 51% subsidiary-—Hypercity (food, grocery and general

merchandise).