Declaration

Download as doc, pdf, or txt
Download as doc, pdf, or txt
You are on page 1of 30

DECLARATION

I,_________________, Enrolment No.____________of BBA-III Sem-Shift from Tecnia Institute of Advanced Studies, New Delhi has done my secondary data based study & prepared Minor Project Report on the Company M/s_____________________________for partial fulfillment of Bachelor of Business Administration (BBA) to be awarded by G.G.S.I.P. University, Delhi .

Date: Signature of the student

(A nkit Rajdev) Certified by:

(Shafaq Zareen)

Designation:Assistant Professor

CHAPTER 1 INTRODUCTION AND HISTORY OF SHOPPERS STOP

INTRODUCTION OF SHOPPERS STOP

Headquarters Industry Type Status Company Size 2007 Revenue Founded

Bombay Area, India Retail Public Company Operating 5,000 employees 8,881 mil [INR] (28%) 1991

Then

NOW

The companys flagship business of department stores is manifest in Shoppers Stop. A pioneer of modern retail in India, Shoppers Stop Ltd. today, is the countrys largest chain of Department Stores. It offers customers an international shopping environment and a world-class shopping experience through its 24 stores in 12 cities. It houses a host of international and domestic brands across categories such as apparel, accessories, cosmetics, home & kitchenware as also its own exclusive brands. Pioneer of modern retail in India, Shoppers Stop Ltd, has been instrumental in bringing about the retail revolution in India. A professionally managed and systems driven organization, Shoppers Stop has always been attuned to evolving consumers. The customer insights have enabled company to service them better and fulfill aspirations. Shoppers Stop has evolved its positioning to Bridge to Luxury and continues to reinforce its leadership position. The company recently revealed our new logo, which reflects the essence of the companys new philosophy

Shoppers Stop Limited was founded by K Raheja Corp in 1991 laying the foundation of the organized retail industry in India. It started operations with the first store in suburban Mumbai and is now a multi-channel retailer with 26 large format department stores and online presence. From its inception, Shopper's Stop has progressed from being a single brand shop to becoming a Fashion & Lifestyle store for the family. Today, Shopper's Stop is a household name, known for its superior quality products, services and above all, for providing a complete shopping experience. With an immense amount of expertise and credibility, Shoppers Stop has become the highest benchmark for the Indian retail industry. In fact, the companys continuing expansion plans aim to help Shoppers Stop meet the challenges of the retail industry in an even better manner than it does today. Shoppers Stop invested in and acquired the Crossword Bookstores which now operates more than 50 stores across the country. It has also invested in Hyper City, a hypermarket which has been rated as amongst the top 100 stores worldwide. With exclusive brands as well as domestic and international brands, Shoppers Stop continues its expansion across the country with the department stores, bookstores and hypermarkets. Shoppers' Stop is a leader in the Indian Retail Sector and one of the pioneers in setting up large format department stores chain in India. Shopper's Stop Ltd has a national presence, with over 6,85,000 square feet of retail space and stocks over 200 brands of garments and accessories. India's premier shopping destination with stores in Mumbai (6), Delhi, Bangalore(2), Hyderabad, Jaipur, Pune, Kolkata(2), Gurgaon & Chennai, Shoppers' Stop is today India's largest retail chain of department stores. Shoppers' Stop is the only Indian member of IGDS (Intercontinental Group of Departmental stores) along with 29 other experienced retailers from all over the world, including, Selfridges of England, Karstadt of Germany, Takashimaya of Japan, C K Tang (Singapore) and, Lamcy Plaza of Dubai to name a few. Shoppers' Stop was selected Super Brand 2003/2004 by an independent Super brands Council comprising of the most eminent professionals from Marketing and Advertising out of a national list of 711 brands across 98 categories

HISTORY OF SHOPPERS STOP


Shoppers Stop Limited was founded by K . Raheja Corp in 1991 laying the foundation of the modern retail industry in India. It started operations with the first store in suburban Mumbai and is now a multi-channel retailer with 36 large format department stores and online presence. Being among India`s biggest hospitality

and real estate players, the group has crossed yet another milestone with its lifestyle venture . From its inception, Shoppers Stop has progressed to become a premier Fashion &Lifestyle destination for the family. Today , Shoppers Stop is known for its superior quality products, services and above all, for providing a complete shopping experience .With an immense amount of expertise and credibility, Shoppers Stop has become the highest benchmark for the Indian retail industry. In fact, the companys continuing expansion plans aim to help Shoppers Stop meet the challenges of the retail industry in an even better manner than it does today. Shoppers Stop invested in and acquired the Crossword Bookstores which now operates more than 65 stores across the country. It has also invested in Hyper CITY, a hypermarket chain which has been rated as amongst the top 100 stores worldwide .Shoppers stop is the only retailer from India to become a member of the prestigious
YEAR 1991 1992 1993 1994 1995 1997 1998 1999 2000 2001 2002 2003 2004 2005 EVENTS The first store opened at Andheri, a suburb in Mumbai selling only Menswear Ladies wear was introduced Added Children & non apparels Loyalty Program titled First Citizen was launched. Opened second store in Bangalore Launched co-branded credit card for our loyalty members in association with HSBC. Opened third store in Hyderabad Implemented JDA Retail ERP (a global leader in retail ERP packages). Opened our fourth & fifth store in Jaipur & Delhi Opened sixth & seventh store at Chennai & Chembur Mumbai. Acquired Crossword India 's leading retail book chain Opened eight & ninth store in Pune & Bandra Opened the tenth store in Kandivli Mumbai Opened the eleventh, twelfth & thirteenth store in Mulund Mumbai, Gurgaon & Kolkata Opened fourteen, fifteen & sixteenth store in Malad Mumbai, Kolkata & Bangalore Opened seventeen, eighteen, nineteen & twentieth store in Pune, Juhu Mumbai, Bangalore & Ghaziabad . Launched M.A.C & Homestop our home store. Opened out twenty first (Mumbai) and twenty second store in Lucknow . Launched Mothercare in India and our F & B outlets Brio & Desi Caf. Bought 45% of Timezone India . Signed a 50:50 Joint Venture with the Nuance Group for Airport Retailing Signed an MOU with the Home Retail Group of UK to enter into a franchise arrangement for the Argos formats of catalogue & internet retailing.

2006

2007

CHAPTER 2

VISION MISSIOIN AND OBJECTIVES OF SHOPPERS STOP

SHOPPERS STOP VISION AND MISSION


VISION :

To be a global retailerin India and maintain its No1 position in the Indian Market in the department store category . They are clearlyfocusin on the Indian market , which they believe offers tremendousopportunities to department stores . at the same time , they benchmarks themselves with leading retailers in the segment world wide . It is the constant endeavor to bring in global best practices into the business and consistently upgrade themselves to offer to the customers an international shopping experience . MISSION : Nothing but the best To strive and achieve nothing but the best in terms of processes , practices and deliverables .

Objective of Shoppers Stop


Their main objective is to make their customer satisfy and then profit through sales, employee added after all every organization works to earn money which is possible

through good sales and if our customers are not satisfy then it will be difficult for us. So we put our effort on retaining 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 their customers are their first citizen customers. Today people goes for variety and shoppers stop is doing that, they offer total 250 brands to their customers which act as their strength and help them retaining as well as making new customers. They believe in producing quality so they offer quality 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 to bring the worlds best retail technology, retail practices and sales to India. Currently, they are adding 4 to 5 new stores every year .

CHAPTER 3 MARKET LINKAGES

MARKET LINKAGES OF SHOPPERS STOP : Types of Retail Outlets:

Shoppers Stop is known as multi-Brand retail outlet because of their verity of Products. They offer 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 and Styles to offer customers. They have many other showrooms of Shoppers Stop in Delhi and NCR, so we can say that they have long chain of retail outlets. They also offer online purchasing which means that they are using new technology to increase their sales

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, 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, whos mens and womens outerwear are retailed in India exclusively through the chain.

Different brands offered under each category are given as billow: APPARELS Arrow Louis Phillipie Park Avenue Parx Van Heusen Zodiac Stop Caliber Blackberries Scullers Givo Orly Lee Levice Pepe Killer Lee Cooper Wrangler Spykar Life Allen Solly Provouge Wills

Jewellery
Facet Carbon Sparkles Tanishq FQ Swaroski Gili Oyzsterbay Sarvoski Estelle

Music
Planet M

Music World

Home Dcor
Yamini Four Seasons Viva Welspun Borosil Corning Ware Pedrini Pyren

Hair Styling
Habbibs

Books
Crossword

Fragrances
Christian Dior Ysl Davidoff Joop Diesel Lancaster Nicos

Jil Sander
Calvin Klein Boucheron Police J'del Pozo Myrurgia Etienne Aiger Xm

Sunglasses
Ray Ban

Watches
Casio Esprit Fossil Titan

Shoes
Lee Cooper Red Tape Picasso Stop Life

Marketing Strategies followed by Shoppers Stop Discounts and brand promotion

Shoppers Stop with OM SHANTI OM

Shoppers Stop Ltd.believe that shopping today is not confined to need. It is a new form of entertainment, to fulfill new aspirations and to bring out the new self. Shoppers Stop revealed its new logo in all fanfare with Mr. Shah Rukh Khan as the guest of honour. Upon revealing the new look, Shoppers Stop also announced the new

cause of Think Green that it has taken up The first initiative under the Think Green campaign is the cause of the Neem Tree. The exclusive brand Life merchandise is now sold with sachets of Neem seeds to help create awareness and encourage customers to support the cause. Shoppers Stop print advertising campaign, though tongue in cheek, also highlights environmental concerns. Shoppers Stop has been running a TV campaign which communicates the brands new

baseline Start Something New. Another exciting feature is the new limited edition of Shoppers Stop shopping bags. The first in the series are shopping bags depicting Fashion through Ages like the Audrey Hepburn Breakfast at Tiffanys look and The John Travolta Saturday Night Fever look. The company has introduced Shoppers Stop Radio, the first of its kind retail radio format in the country. The Shoppers Stop Radio has two dedicated RJs (Radio Jockeys) who entertain customers while they shop. The radio plays all genres of music and also provides important information to customers related to shopping.

CHAPTER 4 FINANCIAL LINKAGES

Financial linkages of shoppers stop : Profit And loss Account :


Profit & Loss account of Shoppers Stop Mar '11 12 mths Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Admin Expenses Miscellaneous Expenses Preoperative Exp Capitalised Total Expenses 1,096.92 0.00 98.98 135.92 183.87 112.03 0.00 1,627.72 Mar '11 12 mths Operating Profit PBDIT Interest PBDT Depreciation Other Written Off Profit Before Tax Extra-ordinary items PBT (Post Extra-ord Items) Tax Reported Net Profit Total Value Addition Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualised) Shares in issue (lakhs) Earning Per Share (Rs) Equity Dividend (%) Book Value (Rs) 821.67 9.15 15.00 72.79 349.14 14.39 15.00 79.67 348.66 -18.28 0.00 66.85 348.62 2.00 15.00 85.11 348.27 7.52 15.00 84.75 302.52 311.65 166.83 144.82 31.00 0.00 113.82 0.00 113.82 38.65 75.18 530.81 0.00 6.16 0.80 899.73 0.00 87.59 104.16 149.45 76.20 0.00 1,317.13 Mar '10 12 mths 256.15 264.33 160.11 104.22 31.03 0.00 73.19 -1.84 71.35 21.13 50.23 417.40 0.00 5.24 0.87 787.09 0.00 87.11 14.91 147.05 86.82 0.00 1,122.98 Mar '09 12 mths 179.63 160.93 155.64 5.29 63.13 0.00 -57.84 0.00 -57.84 5.89 -63.72 335.88 0.00 0.00 0.00 751.71 0.00 78.14 12.49 132.69 67.24 0.00 1,042.27 Mar '08 12 mths 158.59 166.90 113.11 53.79 39.27 0.00 14.52 -1.27 13.25 6.28 6.97 290.56 0.00 5.23 0.89 560.24 0.00 58.37 10.85 86.39 40.76 0.00 756.61 Mar '07 12 mths 131.51 142.35 68.01 74.34 25.63 0.00 48.71 0.00 48.71 22.52 26.20 196.36 0.00 5.22 0.89 1,929.00 0.00 1,929.00 9.13 1.24 1,939.37 1,568.37 0.00 1,568.37 8.18 4.91 1,581.46 1,327.51 0.00 1,327.51 -18.70 -24.90 1,283.91 1,146.01 0.00 1,146.01 8.31 54.85 1,209.17 838.69 0.00 838.69 10.84 49.43 898.96 ------------------- in Rs. Cr. ------------------Mar '10 12 mths Mar '09 12 mths Mar '08 12 mths Mar '07 12 mths

Balance Sheet :
Balance Sheet of Shoppers Stop Mar '11 12 mths Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities 41.08 41.08 0.00 0.00 557.02 0.00 598.10 128.72 20.00 148.72 746.82 Mar '11 12 mths Application Of Funds Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses Total Assets Contingent Liabilities 505.64 193.50 312.14 44.65 237.19 151.14 16.01 2.36 169.51 284.32 0.25 454.08 0.00 291.69 9.55 301.24 152.84 0.00 746.82 53.91 457.66 186.66 271.00 27.68 119.67 149.89 10.91 2.81 163.61 222.58 0.23 386.42 0.00 269.66 34.80 304.46 81.96 0.00 500.31 77.69 403.45 167.94 235.51 23.23 97.45 144.98 11.30 15.53 171.81 203.71 0.20 375.72 0.00 264.72 26.32 291.04 84.68 0.00 440.87 81.68 325.34 107.82 217.52 22.86 80.72 169.88 8.20 5.53 183.61 176.31 0.31 360.23 0.00 205.57 6.12 211.69 148.54 0.00 469.64 63.13 199.74 69.01 130.73 21.43 48.90 115.24 7.28 2.45 124.97 124.45 97.03 346.45 0.00 133.09 6.11 139.20 207.25 0.00 408.31 78.40 34.91 34.91 30.72 0.00 243.26 0.00 308.89 176.41 15.00 191.41 500.30 Mar '10 12 mths 34.87 34.87 0.00 0.00 198.22 0.00 233.09 178.22 29.54 207.76 440.85 Mar '09 12 mths 34.86 34.86 0.00 0.00 261.83 0.00 296.69 106.83 66.10 172.93 469.62 Mar '08 12 mths 34.83 34.83 0.00 0.00 260.34 0.00 295.17 113.14 0.00 113.14 408.31 Mar '07 12 mths ------------------- in Rs. Cr. ------------------Mar '10 12 mths Mar '09 12 mths Mar '08 12 mths Mar '07 12 mths

Book Value (Rs)

72.79

79.67

66.85

85.11

84.75

Source : Dion Global Solutions Limited

CASH FLOW STATEMENT :


Cash Flow of Shoppers Stop Mar '11 12 mths Net Profit Before Tax Net Cash From Operating Activities Net Cash (used in)/from Investing Activities Net Cash (used in)/from Financing Activities Net (decrease)/increase In Cash and Cash Equivalents Opening Cash & Cash Equivalents Closing Cash & Cash Equivalents 113.83 137.24 -287.42 149.74 -0.44 2.81 2.36 ------------------- in Rs. Cr. ------------------Mar '10 12 mths 65.67 82.24 -87.97 -6.99 -12.72 15.53 2.81 Mar '09 12 mths -64.36 101.00 -94.17 3.16 9.99 5.54 15.53 Mar '08 12 mths 14.52 14.19 -153.01 43.08 -95.74 101.26 5.53 Mar '07 12 mths 48.71 1.00 -60.15 49.33 -9.83 109.31 99.48

RATIO ANALIYIS :
Key Financial Ratios of Shoppers Stop Mar '11 Investment Valuation Ratios Face Value Dividend Per Share Operating Profit Per Share (Rs) Net Operating Profit Per Share (Rs) Free Reserves Per Share (Rs) Bonus in Equity Capital Profitability Ratios Operating Profit Margin(%) Profit Before Interest And Tax Margin(%) Gross Profit Margin(%) Cash Profit Margin(%) Adjusted Cash Margin(%) Net Profit Margin(%) Adjusted Net Profit Margin(%) Return On Capital Employed(%) Return On Net Worth(%) Adjusted Return on Net Worth(%) Return on Assets Excluding Revaluations Return on Assets Including Revaluations Return on Long Term Funds(%) Liquidity And Solvency Ratios Current Ratio Quick Ratio Debt Equity Ratio Long Term Debt Equity Ratio Debt Coverage Ratios Interest Cover Total Debt to Owners Fund Financial Charges Coverage Ratio Financial Charges Coverage Ratio Post Tax 20.79 0.25 1.87 1.64 10.51 0.69 1.63 1.51 5.03 0.89 1.21 1.00 11.93 0.58 1.48 1.41 28.61 0.38 2.09 1.76 0.88 0.99 0.25 0.07 0.83 0.76 0.69 0.40 0.86 0.79 0.89 0.52 0.73 0.90 0.58 -0.95 1.66 0.38 -15.68 14.00 14.07 5.47 5.47 3.87 3.87 37.57 12.56 12.56 72.79 72.79 43.97 16.33 14.31 14.35 5.03 5.03 3.19 3.19 45.86 18.05 17.32 79.67 79.67 58.85 13.53 8.72 8.77 1.95 1.95 -4.77 -4.77 28.23 -27.33 -15.90 66.85 66.85 35.23 13.83 10.33 10.41 4.11 4.11 0.60 0.60 27.18 2.34 2.79 85.11 85.11 43.03 15.68 12.46 16.28 6.09 6.11 3.08 3.09 28.61 8.87 8.91 84.75 84.75 39.58 5.00 0.75 36.82 234.77 67.78 -10.00 1.50 73.36 449.20 69.62 -10.00 -51.52 380.75 56.56 -10.00 1.50 45.49 328.72 74.83 -10.00 1.50 37.76 240.81 74.49 -Mar '10 Mar '09 Mar '08 Mar '07

Management Efficiency Ratios Inventory Turnover Ratio Debtors Turnover Ratio Investments Turnover Ratio Fixed Assets Turnover Ratio Total Assets Turnover Ratio Asset Turnover Ratio Average Raw Material Holding Average Finished Goods Held Number of Days In Working Capital Profit & Loss Account Ratios Material Cost Composition Imported Composition of Raw Materials Consumed Selling Distribution Cost Composition Expenses as Composition of Total Sales Cash Flow Indicator Ratios Dividend Payout Ratio Net Profit Dividend Payout Ratio Cash Profit Earning Retention Ratio Cash Earning Retention Ratio AdjustedCash Flow Times 9.25 6.55 90.74 93.45 1.40 Mar '11 Earnings Per Share Book Value 9.15 72.79 12.15 7.51 87.34 92.30 2.42 Mar '10 14.39 79.67 ---100.00 7.97 Mar '09 -18.28 66.85 87.79 13.22 26.15 87.14 3.64 Mar '08 2.00 85.11 23.33 11.79 76.77 88.23 2.18 Mar '07 7.52 84.75 56.86 -6.82 2.32 57.36 -6.58 2.69 59.29 -8.43 3.30 65.59 -8.69 4.30 66.80 -8.03 5.17 12.76 143.34 12.76 4.03 2.68 4.03 -32.15 28.52 10.46 141.24 10.46 3.64 3.31 3.64 -38.43 18.81 9.16 136.20 9.16 3.51 3.19 3.51 -41.60 22.96 6.75 148.14 6.75 3.70 2.53 3.70 -58.79 46.66 7.37 133.35 7.28 6.51 2.10 4.40 -56.57 88.96

CHAPTER 5 COMPANY IMAGES

COMPANY IMAGE OF SHOPPERS STOP :


Situational Analysis: Situational Analysis includes current organizational mission, current ownership and management alternatives, and current goods/services category. As we have explained above about the mission management alternatives, current products, so now here we have done the SWOT analysis of Shoppers Stop. Strength Variety Range Different Brands Pioneer Loyal customer Low risk Good financial position Presence across various segments Parikrama the festival

Weakness
Very 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% to 20% discount Competition from standalone stores Late entry into value retailing Store makeover expenditure

Threats
Government Policies Entrance of New Players High attrition Lesser consumer spending Entry of foreign players Unorganized sector Independent stores

Opportunities
Awareness about the brands Quality Youngsters Higher disposable income Collaborate Private levels Tier 2 & tier 3 cities Enter new consumer goods segments

Chapter 6 Conclusion and opinion

CONCLUSION OF SHOPPERS STOP:


As current ratio is increasing but still unsatisfied because its ideal ratio 1:1 and last year it was 0.88 so it means that company is not able to pay liabilities as current assets are less .but quick ratio or liquidity ratio is satisfied its 0.99:1 so company have some assets that it can convert them into cash with a few time span Debt equity ratio is favourable and fully satisfied as its good if it is less from 1. This means that share holders money is occupied much then debentures and loans. Today people goes for variety and shoppers stop is doing that, they offer total 250 brands to their customers which act as their strength and help them retaining as well as making new customers. They believe in producing quality so they offer quality products basically international brands like Louis Phillip, Black Berry, Police, DKNY, Ferrari, etc. ShoppersStop aims to position itself as a global retailer. The company intends to bring the worlds best retail technology, retail practices and sales to India. Currently, they are adding 4 to 5 new stores every year.

Opinion
I m satisfied form the company image but as its some ratios are unfavourable and its not an international brand so I would not like to join its any outlet for lower or middle management until its very much required but if the offer would be at some higher level then I may join as a fresher ..

CHAPTER 7 BIBLOGRAPHY

BIBLOGRAPHY :

1. www.shoppersstop.com 2. www.angelbroking.com 3. www.scribd.com 4. www.financialexpress.com 5. www.economictimes.com

You might also like