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14 April 2023
Company Report
K Raheja Corp in India(All monetary values are in Indian Rupee)
PlanetRetail
Company Report - K Raheja Corp in India
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14 April 2023
Table of Contents
K Raheja Corp in India In A Page......................................................................................................................................11
Interactive Retail Dashboard Data................................................................................................................................12
Sales..........................................................................................................................................................................12
Market Share.............................................................................................................................................................13
Number of Stores......................................................................................................................................................15
Channel Analysis.......................................................................................................................................................16
Category Trends........................................................................................................................................................17
Corporate Structure......................................................................................................................................................19
Channel Overview (2010).............................................................................................................................................20
Contact Details.............................................................................................................................................................21
Country Head Office Address....................................................................................................................................21
Management................................................................................................................................................................25
Ownership....................................................................................................................................................................26
Strategy........................................................................................................................................................................27
2006..........................................................................................................................................................................27
2007..........................................................................................................................................................................27
2008..........................................................................................................................................................................28
2009..........................................................................................................................................................................30
2010..........................................................................................................................................................................31
2011..........................................................................................................................................................................31
Private Label Strategy..................................................................................................................................................34
Private Label Concepts..............................................................................................................................................34
Recently uploaded private label photos....................................................................................................................35
Private Labels: At A Glance.......................................................................................................................................35
Marketing.....................................................................................................................................................................37
Loyalty Cards.............................................................................................................................................................37
Financial Analysis.........................................................................................................................................................38
Sales Statement........................................................................................................................................................38
Key Financials...........................................................................................................................................................38
Financial Statements.................................................................................................................................................38
2001.......................................................................................................................................................................38
2002.......................................................................................................................................................................38
2003.......................................................................................................................................................................38
2004.......................................................................................................................................................................38
2005.......................................................................................................................................................................38
2006.......................................................................................................................................................................38
2007.......................................................................................................................................................................39
2008.......................................................................................................................................................................39
2009.......................................................................................................................................................................41
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2010.......................................................................................................................................................................43
Market Shares by Banner (2010)..................................................................................................................................46
Category Sales (2010)..................................................................................................................................................47
Grocery / Non-Grocery Banner Sales.........................................................................................................................49
..................................................................................................................................................................................49
EEO / Non-EEO Banner Sales.....................................................................................................................................49
Sales by Category (2010).............................................................................................................................................50
Retail Technology Table by Retailer.............................................................................................................................51
IT..................................................................................................................................................................................52
Supply Chain................................................................................................................................................................53
Distribution Network..................................................................................................................................................53
Suplier Collaboration....................................................................................................................................................54
Arcelia (Perfumeries/beauty stores).................................................................................................................................55
Arcelia In A Page...........................................................................................................................................................55
Interactive Retail Dashboard........................................................................................................................................56
Sales..........................................................................................................................................................................56
Market Share.............................................................................................................................................................57
Number of Stores......................................................................................................................................................58
Category Trends........................................................................................................................................................59
Ownership....................................................................................................................................................................60
Store Concepts.............................................................................................................................................................61
Private Labels............................................................................................................................................................61
Store Data....................................................................................................................................................................62
Number of Outlets.....................................................................................................................................................62
Size of Outlets...........................................................................................................................................................62
Category Sales (2010)...............................................................................................................................................62
EEO Sales (2010).......................................................................................................................................................62
Market Shares (2010)...................................................................................................................................................63
Category Sales (2010)..................................................................................................................................................64
Category Sales (2010)...............................................................................................................................................66
Developments..............................................................................................................................................................67
2007..........................................................................................................................................................................67
2008..........................................................................................................................................................................67
Cafe Brio (Coffee shops/tea houses)................................................................................................................................68
Cafe Brio In A Page.......................................................................................................................................................68
Interactive Retail Dashboard........................................................................................................................................69
Sales..........................................................................................................................................................................69
Market Share.............................................................................................................................................................70
Number of Stores......................................................................................................................................................71
Category Trends........................................................................................................................................................72
Store Concepts.............................................................................................................................................................74
Store Data....................................................................................................................................................................75
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Number of Outlets.....................................................................................................................................................75
Size of Outlets...........................................................................................................................................................75
Category Sales (2010)...............................................................................................................................................75
EEO Sales (2010).......................................................................................................................................................75
Market Shares (2010)...................................................................................................................................................76
Category Sales (2010)..................................................................................................................................................77
Category Sales (2010)...............................................................................................................................................79
Developments..............................................................................................................................................................80
2008..........................................................................................................................................................................80
2009..........................................................................................................................................................................80
Crossword (Book stores)..................................................................................................................................................82
Crossword In A Page.....................................................................................................................................................82
Interactive Retail Dashboard........................................................................................................................................83
Sales..........................................................................................................................................................................83
Market Share.............................................................................................................................................................84
Number of Stores......................................................................................................................................................85
Category Trends........................................................................................................................................................86
Ownership....................................................................................................................................................................87
Store Concepts.............................................................................................................................................................88
Store Data....................................................................................................................................................................89
Number of Outlets.....................................................................................................................................................89
Size of Outlets...........................................................................................................................................................89
Category Sales (2010)...............................................................................................................................................89
EEO Sales (2010).......................................................................................................................................................89
Market Shares (2010)...................................................................................................................................................90
Category Sales (2010)..................................................................................................................................................91
Category Sales (2010)...............................................................................................................................................93
Developments..............................................................................................................................................................94
2000..........................................................................................................................................................................94
2005..........................................................................................................................................................................94
2006..........................................................................................................................................................................94
2007..........................................................................................................................................................................94
2008..........................................................................................................................................................................94
2009..........................................................................................................................................................................95
2010..........................................................................................................................................................................96
2011..........................................................................................................................................................................96
Estee Lauder (Perfumeries/beauty stores).......................................................................................................................98
Estee Lauder In A Page.................................................................................................................................................98
Interactive Retail Dashboard........................................................................................................................................99
Sales..........................................................................................................................................................................99
Market Share...........................................................................................................................................................100
Number of Stores....................................................................................................................................................101
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Category Trends......................................................................................................................................................102
Ownership..................................................................................................................................................................103
Store Concepts...........................................................................................................................................................104
Store Data..................................................................................................................................................................105
Number of Outlets...................................................................................................................................................105
Size of Outlets.........................................................................................................................................................105
Category Sales (2010).............................................................................................................................................105
EEO Sales (2010).....................................................................................................................................................105
Market Shares (2010).................................................................................................................................................106
Category Sales (2010)................................................................................................................................................107
Category Sales (2010).............................................................................................................................................109
Developments............................................................................................................................................................110
2005........................................................................................................................................................................110
2008........................................................................................................................................................................110
2010........................................................................................................................................................................110
2011........................................................................................................................................................................110
ExpressCITY (Neighbourhood stores).............................................................................................................................111
ExpressCITY In A Page................................................................................................................................................111
Interactive Retail Dashboard......................................................................................................................................112
Sales........................................................................................................................................................................112
Market Share...........................................................................................................................................................113
Number of Stores....................................................................................................................................................114
Category Trends......................................................................................................................................................115
Management..............................................................................................................................................................117
Ownership..................................................................................................................................................................118
Store Concepts...........................................................................................................................................................119
Private Labels..........................................................................................................................................................119
Store Data..................................................................................................................................................................120
Number of Outlets...................................................................................................................................................120
Size of Outlets.........................................................................................................................................................120
Category Sales (2008).............................................................................................................................................120
EEO Sales (2008).....................................................................................................................................................120
Market Shares (2008).................................................................................................................................................121
Category Sales (2008)................................................................................................................................................122
Category Sales (2008).............................................................................................................................................124
Developments............................................................................................................................................................125
2007........................................................................................................................................................................125
2008........................................................................................................................................................................125
GourmetCITY (Superstores)...........................................................................................................................................126
GourmetCITY In A Page..............................................................................................................................................126
Interactive Retail Dashboard......................................................................................................................................127
Sales........................................................................................................................................................................127
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Market Share...........................................................................................................................................................128
Number of Stores....................................................................................................................................................129
Category Trends......................................................................................................................................................130
Management..............................................................................................................................................................132
Ownership..................................................................................................................................................................133
Store Concepts...........................................................................................................................................................134
Private Labels..........................................................................................................................................................134
Store Data..................................................................................................................................................................135
Number of Outlets...................................................................................................................................................135
Size of Outlets.........................................................................................................................................................135
Category Sales (2008).............................................................................................................................................135
EEO Sales (2008).....................................................................................................................................................135
Market Shares (2008).................................................................................................................................................136
Category Sales (2008)................................................................................................................................................137
Category Sales (2008).............................................................................................................................................139
Developments............................................................................................................................................................140
2007........................................................................................................................................................................140
2009........................................................................................................................................................................140
HomeStop (Home furnishing stores)..............................................................................................................................141
HomeStop In A Page...................................................................................................................................................141
Interactive Retail Dashboard......................................................................................................................................142
Sales........................................................................................................................................................................142
Market Share...........................................................................................................................................................143
Number of Stores....................................................................................................................................................144
Category Trends......................................................................................................................................................145
Management..............................................................................................................................................................146
Ownership..................................................................................................................................................................147
Store Concepts...........................................................................................................................................................148
Store Data..................................................................................................................................................................149
Number of Outlets...................................................................................................................................................149
Size of Outlets.........................................................................................................................................................149
Category Sales (2010).............................................................................................................................................149
EEO Sales (2010).....................................................................................................................................................149
Market Shares (2010).................................................................................................................................................150
Category Sales (2010)................................................................................................................................................151
Category Sales (2010).............................................................................................................................................153
Developments............................................................................................................................................................154
2005........................................................................................................................................................................154
2008........................................................................................................................................................................154
2011........................................................................................................................................................................154
HyperCity (Hypermarkets).............................................................................................................................................156
HyperCity In A Page....................................................................................................................................................156
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Interactive Retail Dashboard......................................................................................................................................157
Sales........................................................................................................................................................................157
Market Share...........................................................................................................................................................158
Number of Stores....................................................................................................................................................159
Category Trends......................................................................................................................................................160
Management..............................................................................................................................................................162
Ownership..................................................................................................................................................................163
Store Concepts...........................................................................................................................................................164
Private Label Strategy................................................................................................................................................165
Private Labels..........................................................................................................................................................165
Private Labels: At A Glace.......................................................................................................................................165
Store Data..................................................................................................................................................................166
Number of Outlets...................................................................................................................................................166
Size of Outlets.........................................................................................................................................................166
Category Sales (2010).............................................................................................................................................166
EEO Sales (2010).....................................................................................................................................................166
Market Shares (2010).................................................................................................................................................167
Category Sales (2010)................................................................................................................................................168
Category Sales (2010).............................................................................................................................................170
Developments............................................................................................................................................................171
2006........................................................................................................................................................................171
2007........................................................................................................................................................................171
2008........................................................................................................................................................................171
2009........................................................................................................................................................................173
2010........................................................................................................................................................................174
2011........................................................................................................................................................................175
HyperCITY-Argos (Variety stores (non-food)).................................................................................................................177
HyperCITY-Argos In A Page.........................................................................................................................................177
Interactive Retail Dashboard......................................................................................................................................178
Sales........................................................................................................................................................................178
Market Share...........................................................................................................................................................179
Number of Stores....................................................................................................................................................180
Category Trends......................................................................................................................................................181
Ownership..................................................................................................................................................................183
Store Concepts...........................................................................................................................................................184
Store Data..................................................................................................................................................................185
Number of Outlets...................................................................................................................................................185
Size of Outlets.........................................................................................................................................................185
Category Sales (2009).............................................................................................................................................185
EEO Sales (2009).....................................................................................................................................................185
Market Shares (2009).................................................................................................................................................186
Category Sales (2009)................................................................................................................................................187
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Category Sales (2009).............................................................................................................................................189
Developments............................................................................................................................................................190
2007........................................................................................................................................................................190
2008........................................................................................................................................................................190
2009........................................................................................................................................................................191
Nuance Group/Airport Retailing (Duty free stores)........................................................................................................192
Nuance Group/Airport Retailing In A Page..................................................................................................................192
Interactive Retail Dashboard......................................................................................................................................193
Sales........................................................................................................................................................................193
Market Share...........................................................................................................................................................194
Number of Stores....................................................................................................................................................195
Category Trends......................................................................................................................................................196
Ownership..................................................................................................................................................................198
Store Concepts...........................................................................................................................................................199
Store Data..................................................................................................................................................................200
Number of Outlets...................................................................................................................................................200
Size of Outlets.........................................................................................................................................................200
Category Sales (2010).............................................................................................................................................200
EEO Sales (2010).....................................................................................................................................................200
Market Shares (2010).................................................................................................................................................201
Category Sales (2010)................................................................................................................................................202
Category Sales (2010).............................................................................................................................................204
Developments............................................................................................................................................................205
2008........................................................................................................................................................................205
2009........................................................................................................................................................................205
2011........................................................................................................................................................................206
Shoppers' Stop (Clothing stores)...................................................................................................................................207
Shoppers' Stop In A Page...........................................................................................................................................207
Interactive Retail Dashboard......................................................................................................................................208
Sales........................................................................................................................................................................208
Market Share...........................................................................................................................................................209
Number of Stores....................................................................................................................................................210
Category Trends......................................................................................................................................................211
Management..............................................................................................................................................................212
Ownership..................................................................................................................................................................213
Store Concepts...........................................................................................................................................................214
Private Label Strategy................................................................................................................................................215
Private Labels..........................................................................................................................................................215
Store Data..................................................................................................................................................................216
Number of Outlets...................................................................................................................................................216
Size of Outlets.........................................................................................................................................................216
Category Sales (2010).............................................................................................................................................216
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EEO Sales (2010).....................................................................................................................................................216
Market Shares (2010).................................................................................................................................................217
Category Sales (2010)................................................................................................................................................218
Category Sales (2010).............................................................................................................................................220
Developments............................................................................................................................................................221
1991........................................................................................................................................................................221
1992........................................................................................................................................................................221
1994........................................................................................................................................................................221
1995........................................................................................................................................................................221
2000........................................................................................................................................................................221
2005........................................................................................................................................................................221
2006........................................................................................................................................................................221
2007........................................................................................................................................................................221
2008........................................................................................................................................................................223
2009........................................................................................................................................................................225
2010........................................................................................................................................................................226
2011........................................................................................................................................................................227
TimeZone (Other revenues)...........................................................................................................................................228
TimeZone In A Page...................................................................................................................................................228
Interactive Retail Dashboard......................................................................................................................................229
Sales........................................................................................................................................................................229
Market Share...........................................................................................................................................................230
Number of Stores....................................................................................................................................................231
Category Trends......................................................................................................................................................232
Ownership..................................................................................................................................................................233
Store Concepts...........................................................................................................................................................234
Store Data..................................................................................................................................................................235
Number of Outlets...................................................................................................................................................235
Size of Outlets.........................................................................................................................................................235
Category Sales (2010).............................................................................................................................................235
EEO Sales (2010).....................................................................................................................................................235
Market Shares (2010).................................................................................................................................................236
Category Sales (2010)................................................................................................................................................237
Category Sales (2010).............................................................................................................................................238
Developments............................................................................................................................................................239
2006........................................................................................................................................................................239
2011........................................................................................................................................................................239
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Company Report - K Raheja Corp in India
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K Raheja Corp in India In A PageTotal Sales Top Banners Chairman
World Wide - INR 24.6 billion Shoppers' Stop, Hypercity, Crossword, Timezone, Cafe Brio Mr Chandru Raheja
India - INR 24.6 billion
CAGR Number of Stores Website
World Wide Sales - 29% World Wide - 179 www.krahejacorp.com
India - 29% India - 179
Summary
K Raheja Corp is an Indian conglomerate whose main retail operations include Hypercity hypermarkets, Shoppers’ Stop clothing stores, Crossword book and music stores and Inorbit shopping malls. The group also operates other speciality chains.
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Company Report - K Raheja Corp in India
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Interactive Retail Dashboard Data
Sales
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Company Report - K Raheja Corp in India
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Market Share
Grocery Market Share
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Non-Grocery Market Share
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Number of Stores
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Channel Analysis
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Category Trends
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Company Report - K Raheja Corp in India
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Corporate Structure
As of May 2008, K Raheja-owned HyperCITY Retail has abandoned plans announced last year to launch a neighbourhood store format under the ExpressCITY banner. The emphasis will shift instead to big box formats and multi-channel retailing. HyperCITY CEO Andrew Levermore said "The experiment with the neighbourhood format has been put on the back burner for now. It is clear that the HyperCity format delivers greater returns than the small formats in the retail space, so we have decided to expand HyperCity. We may revisit the small convenience format experiment at some point in the future." Sources said huge rentals charged by property developers made the low-margin businesses unviable.
In January 2009, UK based company Home Retail Group has announced that it will discontinue trialling the Argos format in India. Following an initial two year development period, the decision has been taken mutually by Home Retail Group, Shoppers' Stop and HyperCITY. The trial had not met the planned performance levels to support the investment required in the current Indian economic climate. The existing retail operations will be wound down, at minimal cost to Home Retail Group. The company added that, at some point in the future, the Indian retail market may still present an attractive long-term growth opportunity for the Argos multi-channel model.
In 2009, Shoppers' Stop moved out of the food business after announcing that its Café Brio outlets would be replaced with Café Coffee Day outlets over the next couple of months. SS BS Nagesh Managing Director said: "We have taken a call to close those ventures which are taking a longer time to break even."
In October 2009, K Raheja owned HyperCITY Retail has re-strategised its business plans and will continue to focus on its hypermarket format. The company has decided to consolidate our GourmetCITY business. It was a futuristic store concept created as part of our innovation and expansion plans but the return on investment does not make this business feasible. The existing GourmetCITY located at In Orbit Mall, Malad, has not been meeting business plans.<>
Please note: To avoid double-counting, store operations data relates to stand-alone stores only.
Since 2007, K Raheja has had a franchise agreement with the UK's Home Retail Group, which will see the Home Retail Group establish a store before the end of 2007 under the HyperCITY-Argos banner. Please see Home Retail Group in UK for more details.
For more information on Mothercare please see Mothercare in India.
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Company Report - K Raheja Corp in India
14 April 2023
Channel Overview (2010)
Channel Format Banner Number of Outlets
Banner Sales (INR)
Total Sales Area (SQ. FT.)
Cafes Coffee shops/tea houses
Cafe Brio 25 264,312,000 40,365
Catering Duty free stores Nuance Group/Airport Retailing
7 45,554,900 10,549
Drugstores, Pharmacies & Perfumeries
Perfumeries/beauty stores
Arcelia 5 97,300,000 24,972
Drugstores, Pharmacies & Perfumeries
Perfumeries/beauty stores
M.A.C 7 117,300,000 11,302
Entertainment Book stores Crossword 72 1,500,000,000 383,626
Fashion and accessories stores
Clothing stores Shoppers' Stop 38 15,148,000,000 1,805,861
Home garden and auto stores
Home furnishing stores
HomeStop 4 221,300,000 129,167
Hypermarkets & Superstores
Hypermarkets Hypercity 9 5,999,999,500 1,080,158
Other Revenues Other revenues Timezone 12 1,205,003,100 129,167
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Company Report - K Raheja Corp in India
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Contact Details
Country Head Office Address
India
HyperCity
Hypermarkets
Hypercity Retail (India) Limited
Construction House ‘A’,
24th Road, Khar (West),
Mumbai – 400 052
Tel: +91 022 2600 2177
Fax: +91 022 2600 1010
Web: www.hypercityindia.com
Arcelia
Perfumeries/beauty stores
Construction House ‘A’,
24th Road, Khar (West),
Mumbai – 400 052
Tel: +91 022 2600 2177
Fax: +91 022 2600 1010
Estee Lauder
Perfumeries/beauty stores
Shoppers' Stop Ltd
Eureka Towers
9th Floor, C - Wing, Plot No 504
Link Road, Malad (W)
Mumbai – 400 064
Tel: +91 022 880 0808
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Web: www.maccosmetics.com
Crossword
Book stores
Crossword Bookstores Limited
Eureka Towers
9th Floor, C - Wing, Plot No 504,
Link Road, Malad (W)
Mumbai – 400 064
Tel: +91 022 880 0808
Web: www.crosswordbookstores.com
TimeZone
Other revenues
Timezone Entertainment Pvt. Ltd
Construction House ‘A’,
24th Road, Khar (West),
Mumbai – 400 052
Tel: +91 022 2600 2177
Fax: +91 022 2600 1010
Cafe Brio
Coffee shops/tea houses
Construction House ‘A’,
24th Road, Khar (West),
Mumbai – 400 052
Tel: +91 022 2600 2177
Fax: +91 022 2600 1010
Web: www.krahejacorp.com
Nuance Group/Airport Retailing
Duty free stores
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Company Report - K Raheja Corp in India
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Construction House ‘A’,
24th Road, Khar (West),
Mumbai – 400 052
Tel: +91 022 2600 2177
Fax: +91 022 2600 1010
Web: www.krahejacorp.com
HomeStop
Home furnishing stores
Shoppers' Stop Ltd
Eureka Towers
9th Floor, C - Wing, Plot No 504,
Link Road, Malad (W)
Mumbai – 400 064
Tel: +91 022 880 0808
Web: www.shoppersstop.com
Mothercare
Clothing stores
Shoppers' Stop Ltd
Eureka Towers
9th Floor, C - Wing, Plot No 504
Link Road, Malad (W)
Mumbai – 400 064
Tel: +91 022 880 0808
Web: www.mothercare.com
Shoppers' Stop
Clothing stores
Shoppers' Stop Ltd
Eureka Towers
9th Floor, C - Wing, Plot No 504
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Company Report - K Raheja Corp in India
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Link Road, Malad (W)
Mumbai – 400 064
Tel: +91 022 880 0808
Web: www.shoppersstop.com
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Company Report - K Raheja Corp in India
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Management
Mr Chandru Raheja
Chairman -
Mr Govind Shrikhande
Managing Director - Shoppers Stop
Mr Ravi Raheja
Operations Director -
Mr Neel Raheja
Operations Director -
Mr Mark Ashman
Division Director - CEO HyperCITY Retail
Mr B S Nagesh
Division Director - CEO Shoppers' Stop
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Company Report - K Raheja Corp in India
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Ownership
Private company
K Raheja Corp is an Indian conglomerate with interests ranging from real estate, hospitality and retailing.
This profile concentrates on the group's retailing interests only.
Subsidiaries
Upasna Trading Limited, Shoppers Stop.Com (India) Limited,
Shoppers' Stop Services (India) Limited, Crossword Bookstores Limited,
Gateway Multi Channel Retail (India) Limited
Joint Ventures
Nuance Group (India) Private Limited
Timezone Entertainment Private Limited
In March 2009, K Raheja promoted Shoppers' Stop reported that two of its promoters have hiked their stakes in the company to 17.66% through open market purchase. In a disclosure to the Bombay Stock Exchange, Shoppers' Stop said one of its promoters, Ambee Constructions, has acquired 362 thousand shares, representing 1.04% stake in the company. Furthermore, Cape Trading, another promoter entity of the company, also acquired 1.04% stake, amounting to 361 thousand shares. Post acquisition, Ambee Constructions and Cape Trading each now holds 8.83% stake in the retail firm.
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Company Report - K Raheja Corp in India
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Strategy
2006
K Raheja Corp is looking to continue to expand its Shoppers' Stop format across India. The format is one of the most modern and impressive in Indian retailing at present and has huge potential. One danger, however, is the threat of overexpansion (especially as real estate costs are rising rapidly), especially if the expected upturn in the number of indian consumers able and/or willing to shop in the stores does not occur.
However, for the moment, the chain's expansion plans call for a total of 26 stores by the end of 2007 and 39 stores by the end of 2008.
Shoppers' Stop has also launched a new furniture format called Home Stop, with the first pilot store nearing the completion of its test period. A second store is due to open in 2006 and if it continues to be successful expansion could be ramped up.
More Crossword openings are also likely (with a target of achieving around 60 stores over the next two to three years), although this format seems one of the weakest in terms of the long term potential.
Further diversification is likely. The Brio continental fast food outlets and Desi Café Indian fast food outlets, it currently operates within its Shoppers' Stop stores could be launched as stand-alone stores in the future, while the same could be true for the Fresh Basket bakery section within the Hypercity store. In addition, Shoppers' Stop is looking to roll-out some of its licensed brands in India, with Mothercare seen as having the most potential, especially given the high birth rate in the country. Plans apparently call for the number of these stores (including concessions within Shoppers' Stop stores) to grow to around 40 in the next three to four years. The first M.A.C. (Estee Lauder) cosmetics store opened in mid-2005.
Most excitement, though, is now concentrating around the Hypercity hypermarket format. The first store opened in early 2006 as part of the K Raheja Corp. Shoppers' Stop has the option to acquire a 51% stake in Hypercity before the end of December 2008. The first store is one of the first true hypermarkets in India and could have a significant impact upon the group's future development plans if it is succesful. The company has stated that it is looking to open between 3-4 stores annually.
2007
Shoppers Stop has opened its first pilot beauty and personal care products store Arcelia in Pune occupying 464 square metres offering cosmetics, perfumes, watches and sunglasses. By running this pilot project for a chain of beauty and personal care products the company is aiming to create a presence in the health and beauty retail segment of the country.
K Raheja group plans to invest INR1,500 crore(USD367 million) for opening up 68 Hypercity hypermarket stores and 250 Expresscity convenience stores nationwide in the next five years.
K Raheja Corp is looking to continue to expand its Shoppers' Stop format across India. The format is one of the most modern and impressive in Indian retailing at present and has huge potential. One danger, however, is the threat of overexpansion (especially as real estate costs are rising rapidly), especially if the expected upturn in the number of indian consumers able and/or willing to shop in the stores does not occur.
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Company Report - K Raheja Corp in India
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However, for the moment, the chain's expansion plans call for a total of 26 stores by the end of 2007 and 39 stores by the end of 2008.
Shoppers' Stop has also launched a furniture format called Home Stop, with plans for further stores is successful.
More Crossword openings are also likely (with a target of achieving around 60 stores over the next two to three years).
Further diversification is likely. The Brio continental fast food outlets and Desi Café Indian fast food outlets, it currently operates within its Shoppers' Stop stores could be launched as stand-alone stores in the future, while the same could be true for the Fresh Basket bakery section within the Hypercity store. In addition, Shoppers' Stop is looking to roll-out some of its licensed brands in India, with Mothercare seen as having the most potential, especially given the high birth rate in the country. Plans apparently call for the number of these stores (including concessions within Shoppers' Stop stores) to grow to around 40 in the next three to four years. The first MAC (Estee Lauder) cosmetics store opened in 2005.
Most excitement, though, is now concentrating around the HyperCITY hypermarket format. The first store opened in early 2006 as part of the K Raheja Corp. Shoppers' Stop has the option to acquire a 51% stake in HyperCITY before the end of December 2008 (as part of this, it acquired a 19% stake in early 2007). The first store is one of the first true hypermarkets in India and could have a significant impact upon the group's future development plans if it is succesful. The company has stated that it is looking to open "at least" 15 new stores by the end of 2008, although the most recent plans call for 68 hypermarkets by 2012.
In addition, early 2007 saw the group sign a franchise agreement with the UK's Home Retail Group, which will see the Home Retail Group establish a store before the end of 2007 under the HyperCITY-Argos banner. The Home Retail Group has said that the first outlet will be in Mumbai region and its offer will be based largely on the existing Argos multi-channel proposition.
HyperCITY will launch upmarket food stores under the GourmetCity fascia later this year with plans for a 50 store chain. Separately, HyperCITY will launch a convenience chain called ExpressCITY, for which it believes there is scope for up to 400 stores.
The group has also taken a stake in Timezone Entertainment in an attempt to tap into the family entertainment sector. Sources suggest that there could be the potential for up to 100 Timezone centres in the long term.
2008
Shoppers' Stop is planning to set up its ecommerce business www.shoppersstop.com. The website showcases products including clothing, accessories, home and travel and others. In addition, many major brands that are available in Shoppers Stop stores are available online as well.
As of May, K Raheja-owned HyperCITY Retail has abandoned plans announced last year to launch a neighbourhood store format under the ExpressCITY banner. The emphasis will shift instead to big box formats and multi-channel retailing. HyperCITY CEO Andrew Levermore said: "The experiment with the convenience format has been put on the back burner for now. It is clear that the HyperCITY format delivers greater returns than the small format (ExpressCITY)
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Company Report - K Raheja Corp in India
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in the retail space, so we have decided to expand HyperCITY. We may revisit the small convenience format experiment at some point in the future."
In June Shoppers' Stop launched Stop & Go (airport retailing) at the Bangalore International Airport in India. With the addition of this store, the company now operates 129 stores across different formats across the country. Shoppers' Stop occupies an area of 139,405 square metres. The group operates:-
24 - Shoppers' Stop
3 - Home Stop
2 - Arcelia
3 - Stop & Go
4 - M.A.C
25 - Cafe Brio/Desi Cafe (including two food courts)
1 - Clinique (within HyperCITY)
48 - Crossword (including 11 shop-in-shops and 37 standalone stores)
19 - Mothercare (ten shop-in-shops and nine standalone stores)
2 - Nuance/Shoppers' Stop (Stop & Go)
Furthermore, HyperCITY launched its back2school collection of paper and stationery products including pencils, erasers, sharpeners and packaged sets (glitters and glue-sticks). The range offers a branded holiday-work and school-work supplies from Faber Castel, Crayola, Camlin, ITC, Apsara, Pidilite and Maped.
Crossword is planning to start its own private label business (stationery, music, toys and other categories) in March. The move is aimed at increasing margins to around 8% from the current 4% for stationery. At present, the company operates 46 stores and non-book categories (pens, stationery, toys and music) currently account for 40-42% of all sales.
As of August, According to reports in the Indian press, HyperCITY Retail CEO Andrew Levermore is understood to have announced his resignation. Levermore is reportedly moving back to South Africa to head up another venture after leading HyperCity for four years, sources said. It is not clear as to whether the group has identified a successor yet.
In December, Shoppers' Stop reported deferring its plans to raise its stake in HyperCITY to 51% by about 19 months owing to cash crunch and slowing sales. Moreover, following earlier announcements in August this year, HyperCITY CEO Andrew Levermore has quit. According to company statement, Levermore along with his family will be returning back to South Africa at the end of December 2008. However, Levermore will remain on the board of HyperCity as a Non-Executive Director.
Investment Plans
Shoppers' Stop plans INR500 crore (USD127 million) rights issue to fund its expansion. The company aims at occupying 278 thousand square metres retail space by setting up 20 Shoppers' Stop stores and 13 Hypercity outlets in the next two years.
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In December, Shoppers' Stop reported to invest INR1,000 crore(USD219 million) for expanding its current retail space of 120,818 square metres to 250,929 square metres over the next three-four years.
Joint Venture(s)
K Raheja Corp has announced inking an exclusive franchise agreement with Australia-based Servcorp to provide business logistics support and establish a presence in the serviced and virtual offices in India. As per the agreement, the company will offer cost effective day to day operations. Under the serviced offices will have meeting rooms and administration services that will be operated on a pay for what you use basis, whereas virtual offices service will support those businesses that do not require a physical office space.
In November, local press reported that HyperCITY has announced joining hands with National Geographic to offer an extensive range of educational toys within the stores. The range targets the children over eight years of age and the company believes that these toys will motivated children to learn as they play.
2009
As of May 2008, K Raheja-owned HyperCITY Retail has abandoned plans announced last year to launch a neighbourhood store format under the ExpressCITY banner. The emphasis will shift instead to big box formats and multi-channel retailing. HyperCITY CEO Andrew Levermore said: "The experiment with the convenience format has been put on the back burner for now. It is clear that the HyperCITY format delivers greater returns than the small format (ExpressCITY) in the retail space, so we have decided to expand HyperCITY. We may revisit the small convenience format experiment at some point in the future."
UK-based company Home Retail Group has announced that it will discontinue trialling the Argos format in India. Following an initial two year development period, the decision has been taken mutually by Home Retail Group, Shoppers' Stop and HyperCITY.
Investment Plans
Shoppers' Stop plans INR500 crore (USD127 million) rights issue to fund its expansion. The company aims at occupying 278 thousand square metres retail space by setting up 20 Shoppers' Stop stores and 13 Hypercity outlets in the next two years.
In December, Shoppers' Stop reported to invest INR1,000 crore(USD219 million) for expanding its current retail space of 120,818 square metres to 250,929 square metres over the next three-four years.
Joint Venture(s)
K Raheja Corp has announced inking an exclusive franchise agreement with Australia-based Servcorp to provide business logistics support and establish a presence in the serviced and virtual offices in India. As per the agreement, the company will offer cost effective day to day operations. Under the serviced offices will have meeting rooms and administration services that will be operated on a pay for what you use basis, whereas virtual offices service will support those businesses that do not require a physical office space.
Closures
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In 2009, Shoppers' Stop moved out of the food business after announcing that its Café Brio outlets would be replaced with Café Coffee Day outlets over the next couple of months. SS BS Nagesh Managing Director said: "We have taken a call to close those ventures which are taking a longer time to break even."
In October 2009, K Raheja owned HyperCITY Retail has re-strategised its business plans and will continue to focus on its hypermarket format. The company has decided to consolidate our GourmetCITY business. It was a futuristic store concept created as part of our innovation and expansion plans but the return on investment does not make this business feasible. The existing GourmetCITY located at In Orbit Mall, Malad, has not been meeting business plans.
2010
Expansion plans
K Raheja owned Shoppers' Stop have announced their plans to invest INR600 crore (USD123 million) for 2010. For Shoppers' Stop, while 2009 was a cautious year, 2010 is likely to see more expansion. Shoppers' Stop CEO Govind Shrikhande said: "In 2009, we launched only two stores and added 100,000 square feet. But in 2010, we are likely to add eight stores of around 400,000 square feet. Currently, we have around 30 stores in India. We will have mainly large format stores." Shoppers' Stop invests INR10-12 crore (USD2-2.4 million) per store and is expected to invest worth INR100 crore (USD20.4 million) in 2010.
Shoppers' Stop
K Raheja owned Shoppers' Stop is planning to open 13 stores across India. With this, the company will have 41 stores across the country.
In addition, the company is also looking to raise capital through qualified institutional placement route by March 2011 to fuel expansion.
HyperCITY
K Raheja owned HyperCITY announced the launch of its fifth store occupying 46,468 square metres located at Thane in Maharashtra. The store sources from both local and global markets offering a wide variety of products including fresh produce, food & grocery, consumer electronics and footwear among many others. The outlet will also be providing free pick and drop bus services to customers. In addition, HyperCity has an exclusive supply agreement with UK based John Lewis owned Waitrose and Raleigh Cycles for offering their products within the HyperCITY stores. As of now the company operates outlets present in Malad, Vashi, Jaipur and Hyderabad.
2011
Future of book retailing
In June local press reports said, K Raheja may exit Crossword, its book retailing business. Eleven years after buying the bookstores, the promoter of Shopper's Stop is reviewing the future of the book retailing chain. According to sources, the company is exploring various options, including alliances and may even exit the business altogether. The group is being advised by investment bank Avendus.
Formerly a division, Crossword Bookstores is now a wholly-owned subsidiary of Shopper's Stop. Shopper's Stop Vice Chairman and Non Executive Director B S Nagesh did not want to comment on operational issues as he was no longer manning the company's day-to-day business. Industry sources are of the opinion that most big retailers would be keen to examine any opportunity to buy Crossword.
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Expansion Plans
Shoppers' Stop plans to open 24 stores by FY14. Shoppers' Stop Group Chief Financial Officer CB Navalkar said: "We plan to open 24 new stores in the next three years. To start with, we would be opening eight-nine Shoppers Stop stores in the current fiscal." He continued to say, "We have already raised funds last year through a QIP issue. Apart from this, the cash generation in the company last year was around INR140 crore (USD31 million). If we have the same this year, it will be more than adequate to cover the expansion plan we have for all the formats."
Hypercity to break even
Hypercity expects to break even by financial year 2012-13 on the strength of its expansion plan as well as its decision to focus on the higher-margin apparel and furniture verticals. Hypercity CEO Mark Ashman said: "The company is confident of breaking even at store level this financial year and at the company operational level by next fiscal. For the year ended March 2011, the company clocked revenue of INR600 crore (USD130.6 million) and we are targeting INR1,000 crore (USD218 million) within a couple of years. The company would now increasingly focus on the apparel and furniture businesses. Both these businesses have better margins than food, which at present accounts for about 55% of overall sales. Apparels contribute 7% to our revenue, which means there is a lot of scope for growth."
In addition, the hypermarket chain also plans to increase the share of private labels for better margins. In the apparel segment, the share of private labels in menswear and women's ethnic wear will touch 90%, while that in kidswear will increase to 70%. Furthermore, the company is also looking to expand its presence nationally and plans to open five hypermarkets every year. "We plan to have 35-50 stores over the next five years," Ashman added. The company will concentrate mainly on the metro cities for its expansion as it is looking to establish a strong market foothold before setting up single-format outlets in other tier-II towns. Hypercity houses international brands like Waitrose and Raleigh. The store has developed a suite of exclusive brands across all categories such as Fresh Basket in foods, Ebano and Avorio in homeware, Maxit in sport goods, Technix in appliances, City and RiverIncin Fashion.
Changing trading model
K Raheja owned Shoppers' Stop has reported changing its trading model and cutting share of private labels. "One of the biggest changes in the operating strategy is the shift in its trading model," says Shoppers' Stop MD Govind Shrikhande. Following earlier announcements, the company has been steadily increasing the proportion of non-bought out goods — those that are on consignment and concession basis — while reducing the bought out goods.
In a consignment-based model, the retailer pays for the goods only after completion of sales and unsold items are returned to the supplier. In a concession agreement, a retailer lets some part of his space to be used by other brands for a fixed rent or share in revenues. The company has increased the merchandise taken on concession and consignment from 40% in FY 2007 to 53% in FY 2010. In the first nine months of FY 2011, it increased to 58%. "We have saved a lot on working capital and inventory costs while sustaining our gross margins," Shrikhande added. Working capital deployed per square feet has come down from INR442 (USD9.6) per square feet to INR137 (USD2.9) in FY 2010 and INR101 (USD2.2) in the first nine months of FY 2011. The company has sustained gross margins at 31-32% since FY 2007. Under consignment and concession agreements, retailers get lower margins as they do not buy goods. But savings on working capital, inventory and interest payments on borrowed funds make up for that loss. That means the 80-90 basis point margin dip in Q3 of FY 2011 due to the model change has been more than made up by a 100 basis point drop in interest charges, Shrikhande adds.
Shoppers Stop is steadily reducing the share of private labels as part of its positioning as a 'bridge to luxury' brand, placing the brand between premium and luxury. The share of private labels has reduced from 20.6% in FY 2007 to 19% in FY 2010 to 17.9% in the first nine months of FY 2011. Due to the trading model change, Shoppers Stop has also seen sharp decline in cash conversion cycle from 30 days in 2007 to below 10 days. Cash conversion cycle measures the time between cash paid to supplier and cash recovery by a retailer, and lower cycle reflects better operating cash flows.
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The business model is not the only change the company has initiated. Shoppers Stop is also shedding its image of a slow mover. It took 20 years to open the first 30 stores. But the company plans to spend INR450 crore (USD98 million) over the next four years to add more stores. It is planning to take the number of stores to 60 in the next four years from 36 at present.
Shrikhande said: "The company does not have problems with funding its expansion, with its robust cash flows and low debt-equity ratio of 0.16. The cash flows are more than what is required to fund our plans." The company requires INR100 crore (USD21.8 million) a year to fund its expansion while it has generated INR95 crore (USD 20.7 million) for the nine months ending 31 December 2010.
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Private Label Strategy
Crossword is planning to start its own private label business (stationery, music, toys and other categories) in March. The move is aimed at increasing margins to around 8% from the current 4% for stationery. At present, the company operates 46 stores and non-book categories (pens, stationery, toys and music) currently account for 40-42% of all sales.
Shoppers' Shop reported that 2006 private label sales amounted to INR1,746 million - an increase of 37% over 2005.
In the HyperCITY stores, CEO Andrew Levermore told Planet Retail in early 2007 that private labels account for 30% of store sales.
In addition to its own brands, HyperCITY stores also have the exclusive rights for the Waitrose premium grocery brand in India (supplied by the UK grocer). HyperCITY announced in 2007 that it will extend the Waitrose line of food from ambient to chilled lines.
Private Label Concepts
City Life
In Hypercity stores - everyday wear for men, women, kids and footwear.
City Sense
In Hypercity stores - comprises of a basic line of value packs on basic clothing items such as socks, t-shirts, briefs, vests and basic denim.
City Style
In Hypercity stores - offers the latest trends at affordable prices.
Fresh Basket
In Hypercity stores - Fresh Basket can be found in meat, seafood, fresh produce, freshly baked breads, specialty bread and the like.
Hypercity
In Hypercity stores - Low prices for everyday foods. The range encompasses foods like cereals, spices, flour, pulses, dry fruits and other staples.
Lauren Christopher
In Hypercity stores - premium range of kitchenware and household furnishings.
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River Inc
In Hypercity stores - a range of denim apparel.
Supremia
In Hypercity stores - the Supremia range spans cereals, spices, flour, pulses, dry fruits and other products and is the premium private label.
Tosca
In Hypercity stores - Tosca is present across utensils, cutlery, cookware, crockery, glassware, and home furnishings.
Recently uploaded private label photos
K Raheja Corp in India, (Next to Inorbit Mall, Malad Link Road, Malad (West), Mumbai) HyperCity - Hypermarkets
K Raheja Corp in India, (Next to Inorbit Mall, Malad Link Road, Malad (West), Mumbai) HyperCity - Hypermarkets
K Raheja Corp in India, (Next to Inorbit Mall, Malad Link Road, Malad (West), Mumbai) HyperCity - Hypermarkets
K Raheja Corp in India, (Next to Inorbit Mall, Malad Link Road, Malad (West), Mumbai) HyperCity - Hypermarkets
K Raheja Corp in India, (Malad, Mumbai) HyperCity - Hypermarkets
Private Labels: At A Glance
Brand Position Product range
City Life Standard Clothing
City Sense Standard Clothing
City Style Standard Clothing
Fresh Basket Standard Fresh
Fresh Basket Standard Fruit & Vegetables
Hypercity Economy Food
Lauren Christopher Standard Other non-food
Mothercare Standard Clothing
River Inc Standard Clothing
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Supremia Premium Food
Tosca Standard Other non-food
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Marketing
2009 budget cut
Shoppers' Stop is being more cautious about its advertising expenses in 2009. Shoppers Stop’s advertising budget has been reduced by 15% for the year ending March 2009 and is likely to come down by 20% next year, says its chief financial officer, Chandrashekhar Navalkar. “We are controlling our ATL (above the line) costs wherever possible and since we have already built up a loyal consumer base, we are focusing on reaching out to them through direct marketing activities.”
Loyalty Cards
Shoppers' Stop offers a loyalty scheme called First Citizen. Members get reward points on every purchase. Special offers, discounts on exclusive events and promotions are also organised. The First Citizens' programme is a triple tier loyalty programme: 1)Golden Glow, 2)Silver Edge, 3)Classic Moments. An exclusive magazine called First Update is sent to Golden Glow and some of Silver Edge First Citizens giving information on latest merchandise and in-store happenings. A Citibank First Citizen co-branded card is offered to Golden Glow and Silver Edge First Citizens. This card provides additional points over the regular reward points besides other benefits such as free insurance, offer alerts, and 0% credit schemes.
By March 2007, the scheme had over 782,000 members (up from 632,000 in March 2006, 429,000 in 2005 and 254,000 in 2004), with holders having a much higher average basket spend than non-members. First Citizens contribute to almost 62% of store sales. Furthermore, in March 2008, over 200 thousand members were added during the year in the Shoppers Stop First Citizen loyalty programme with the total number of members crossing the 1 million mark. Shoppers Stop First Citizen members contributed 65% to sales and the Crossword Book Rewards members contributed 42% to sales.
Furthermore, by March 2011 the company added 406 thousand new members to its First Citizen Loyalty Programme taking the total membership to 2 million.
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Financial Analysis
Sales Statement
2010 (INR)
Retail Banner Sales 24,598,769,498
Retail Banner Sales Year on Year Growth 56
Gross Sales 24,361,795,456
Net Sales 23,021,897,969
Key Financials
2010 (INR)
Net Sales 23,021,897,969
Group Net Profit 431,896,182
Financial Statements
2001FY - Shoppers' Stop has reported total retail sales of INR2,495 million (USD52.8 million).
2002FY - Shoppers' Stop has reported total retail sales of INR3,030 million (USD62.2 million).
2003FY - Shoppers' Stop has reported total retail sales of INR4,044 million (USD86.6 million).
2004FY - Shoppers' Stop has reported total retail sales of INR5,071 million (USD112 million).
2005FY - Shoppers' Stop has reported total retail sales of INR6,779 million (USD154 million).
2006Shoppers Stop Ltd: Full Year - For the year ending March 2007, Shoppers Stop reported a 33% increase in gross retail sales to INR8,996 million (USD198 million). Operating profit rose by 36% to INR697 million (USD15.3 million). Private label sales for the year grew by 37% to INR1,746 million (USD38.5 million). The company ended the year with 20 Shoppers' Stop stores, 11 Mothercare, 43 Crossword, 2 HomeStop, 1 M.A.C. and 14 F&B outlets.
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Shoppers Stop Ltd: H1 - For the six months to end September 2006, consolidated retail turnover rose by 33.8% to INR3,733 million. Pre-tax profit more than doubled to INR220 million, while net profit rose by 108.3% to INR134 million.
2007Shoppers' Stop Ltd: FY - Shoppers' Stop has reported 31% increase in gross retail sales to INR12,069 million (USD292 million) up from INR9,272.39 million (USD224.20 million) compared to last year. Net profit declined to INR72.11 million (USD1.74 million) from INR469.28 million (USD11.34 million) last year.
Shoppers' Stop launched catalogue retailing Hypercity Argos and make up store chain Clinique in the current fiscal year. The company also launched a rebranding campaign for its Shoppers' Stop stores. Shoppers' Stop added around 139,405 square metres of retail space and is planning to double the retail space in the next three years.
These are Consolidated Financial results comprising the results of Shoppers' Stop Limited and its subsidiaries namely Crossword Bookstores Limited, Upasna Trading Limited, Shoppers' Stop. Com (India) Limited, Shoppers' Stop Services (India) Limited and Gateway Multichannel Retail (India) Limited the Company's proportionate share in the results of both Timezone Entertainment Private Limited, Nuance Group (India) Private Limited (prepared and audited up to 31 December 2007) and the results of Hypercity Retail (India) Limited.
Shoppers' Stop Ltd: Q4 - Shoppers' Stop reported 41.39% increase in net profit to INR37.61 million (USD0.89 million) in the fourth quarter ending on 31st March up from INR26.60 million (USD0.64 million) compared to last year. Sales increased 40% to INR2,944.91 million (USD71.18 million) from INR2,102.22 million (USD50.83 million) as compared to last year. The company also reported adding 31,599 square metres of retail space in the quarter.
Shoppers' Stop Ltd: Q3 - Shoppers Stop reported 88.93% decline in net profit to INR15.58 million (USD0.37 million) for the quarter ended December 2007 as compared with INR140.70 million (USD3.46 million) in the corresponding quarter last year. Net sales for the quarter rose 31.43% to INR3,080.55 million (USD76.2 million) as against INR2,343.93 million (USD58 million) for the corresponding quarter last year. The company launched the catalogue retailing (Hyper CITY Argos) business in this quarter. An additional 13,222 square meters we added taking the total area to 140 thousand square metres. At present, the company operates 23 stores with a presence in 12 cities.
Shoppers Stop Ltd: Q2 - For the second quarter ending 30th September 2007, consolidated retail turnover rose by 38% to INR2,753 million from INR1,956 compared with previous year. Net profit fell down sharply from INR73.96 million to INR4.23 million during the same period compared to previous year.
Shoppers Stop Ltd: Q1 - For the first quarter to end June 2007, consolidated retail turnover rose by 30% to INR2,356 million. Operating profit increased by 6% to INR139 million. Two new Shoppers' Stop stores opened, taking the total to 22, while there were two Home Stop stores. Two new Mothercare shop-in-shops opened, taking the total to 13 stores (including 7 shop-in-shops). The company also ended the period with 20 Brio outlets and two Desi Cafes. There were also two M.A.C. outlets.
2008FY - Shoppers' Stop (SS) has announced audited results for the current fiscal year.
The company reported net loss of INR63.65 crore (USD14.5 million) for the full year ending 31 March 2009. Total retail revenue of the company rose 17% to INR1,408.08 crore (USD321 million) up from INR1,196.84 crore (USD289 million) for the same period last year.
Standalone financial results The company incurred net loss of INR63.71 crore (USD14.5 million) and total retail revenue of the company rose to INR1,382.50 crore (USD315 million) up from INR1,190.07 crore (USD287.7 million) for the same period last fiscal. Total Income for the year rose to INR1,265.12 crore (USD289 million) up from 1,093.02 crore (USD264.2 million) for comparable period last year.
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SS closed down over a dozen unviable stores in FY 2009. It also moved out of the food business after announcing that its Café Brio outlets would be replaced with Café Coffee Day outlets over the next couple of months. In March, the company closed three of its Crossword book stores – one at the Mumbai airport and two in Chennai and New Delhi. The company also closed its airport retail store Stop & Go at Mumbai airport.
As per unconfirmed reports in the local press, SS saw a 3% dip in same store growth in the fourth quarter of last fiscal, in sharp contrast to the 20% growth it had witnessed in the corresponding quarter of 2008, as people spent less on discretionary items, like apparel, to save cash in the downturn.
SS department stores also saw footfalls coming down by 15% in Q4 of FY09, as customers stayed away from retail stores in the backdrop of security scare and overall economic slowdown. SS Chief Executive Govind Shrikhande said: "A combination of issues such as security concerns, jobs losses and economic downturn has led to the fall in like for like sales. We expect this to continue in the Q1 and the next quarter." However, the conversion ratio (entry to sales) has gone up from 26% in Q4 of FY08 to 30% in Q4 of FY09. However, in food and groceries, the company saw a same store growth of 9-12% indicating buy-on shopper interest in the basic categories.
Q4 - Shoppers' Stop has reported financial results for the fourth quarter.
Consolidated financial results Net loss of INR24.48 crore (USD5.5 million) for the fourth quarter ending 31 March. Total retail revenue of the company rose to INR347.56 crore (USD79 million) up from INR320.93 crore (USD77.5 million) for the same period last fiscal.
Standalone financial results The company incurred net loss of INR16.92 crore (USD3.8 million) and total retail revenue of the company rose to INR346.81 crore (USD79 million) up from INR319.49 crore (USD77.2 million) for the same period last fiscal.
As per a company report, "During the quarter ended March 09, the management has taken a strategic decision to close some of its food & beverages stores. Depreciation for the quarter includes an amount of INR616 lakhs (USD1.4 million), being the charge arising as a result of write off of assets in these stores."
Nine months - Shoppers' Stop has reported financial results for the nine months ended 31 December.
Consolidated financial results Net loss of INR39.16 crore (USD8.9 million). Total retail revenue of the company rose to INR1,060.52 crore (USD242 million) up from INR875.90 crore (USD200 million) for the same period last fiscal.
Standalone financial results The company incurred net loss of INR46.78 crore (USD10.6 million) and total retail revenue of the company rose to INR1,035.68 crore (USD236 million) up from INR870.57 crore (USD210 million) for the same period last fiscal.
Q3 - Shoppers' Stop has reported financial results for the third quarter ended 31 December.
Consolidated financial results Net profit of INR45.84 crore (USD10.4 million). Total income of the company rose to INR633.54 crore (USD139 million) up from INR498.78 crore (USD120.6 million) for the same period last fiscal.
Standalone financial results The company incurred net loss of INR26.33 crore (USD5.7 million) and total income of the company rose to INR614.87 crore (USD134.8 million) up from INR490.04 crore (USD118.4 million) for the same period last fiscal.
December - As per unconfirmed reports in the local press, Shoppers' Stop same-store sales growth slowed to 7% for the first half of FY-09, from an annual 20% across formats in FY-08. At present the company operate stores in 12 cities across product segments occupying 153,346 square metres of retail space. While transaction size moved up 9% for H1FY-09, volumes actually declined 3%, indicating that the improvement may have been on account of a higher contribution from the luxury segment. Apparel (clothing) sales, usually offering higher margins, have increased to about 62% of sales for H1FY-09 over 59% for the same period last year. Customer entry, though up by a marginal 1%
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in H1FY-09, dropped 6% in Q2FY-09. Conversion of footfalls into sales improved on a quarterly basis. More than 70% of sales at Shoppers' Stop come through its loyalty program, First Citizens Club.
H1 - Shoppers' Stop has reported financial results for the half year ended 30 September.
Consolidated financial results Net loss of INR39.62 crore (USD8.6 million). Total retail revenue of the company rose to INR379.99 crore (USD86.7 million) up from INR337.73 crore (USD81.6 million) for the same period in the last fiscal.
Standalone financial results The company incurred net loss of INR20.45 crore (USD4.6 million) when compared profit of INR1.558 crore (USD0.3 million). While the total retail revenue income of the company rose to INR368.30 crore (USD84 million) up from INR337.65 crore (USD81.6 million) for the same period last year.
Q2 - Shoppers' Stop has reported financial results for the second quarter ended 30 September.
Consolidated financial results Net loss of INR18.26 crore (USD4 million). Net profit of INR23 lakh (USD55.6 thousand) in the same quarter previous year. Total income rose to INR350.08 crore (USD76.7 million) up from INR279.34 crore (USD67.5 million) last year.
Standalone financial results The company also reported net loss stood at INR11.01 crore (USD2.6 million) while it earned a net profit of INR42.30 lakh (USD102 thousand) over the corresponding period last year. Total income rose to INR338.85 crore (USD81.9 million) up from INR277.27 crore (USD67 million) for the previous year.
Q1 - Shoppers' Stop has reported financial results for the first quarter ended June.
Consolidated financial results Net loss of INR21.35 crore (USD4.6 million). The company had a consolidated net profit of INR197 lakh (USD476 thousand) in the same quarter previous year. Total income rose to INR283.46 crore (USD62.1 million) up from INR219.31 crore (USD53 million) last year.
Standalone financial results The company also reported net loss stood at INR15.31 (USD3.3 million) while it earned a net profit of INR303 lakh (USD732 thousand) over the corresponding period last year. Standalone total income rose to INR275.83 crore (USD60.4 million) up from INR212.64 crore (USD51.4 million) for the previous year.
2009FY – Shoppers' Stop reported its financial results for the year ended 31 March 2010.
Consolidated financial results- Retail turnover/revenue for the full year stood at INR15,780.6 million (USD321.5 million). Net profit was INR358.8 million (USD7.34 million).
Standalone financial results- Retail turnover/revenue for the full year stood at INR15,465.7 million (USD316.5 million). Net profit was INR502.3 million (USD10.2 million).
During the year the group added 4 Shoppers Stop stores, 4 Crossword outlets, 2 MAC stores, 2 Estee Lauder stores and 1 Clinique store.
Govind Shrikhande, President & CEO of Shopper’s Stop Ltd said: “A strong brand, differential merchandise strategy and cost control combined with the support of loyal customers has helped us in posting strong results. With a good recovery of the Indian economy, shopping is back in fashion and Shoppers Stop is very well positioned to capitalize on the market opportunity. We estimate, that the next 30 months will see us add 18 more stores. Apart from expanding in metros, we will also enter tier II cities.”
Q4 - Shoppers' Stop has reported its annual results for the fourth quarter ended 31 March 2010.
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Consolidated financial results- Retail turnover/revenue for the fourth quarter stood at INR4,241.9 million (USD86.8 million). Net profit was INR125.7 million (USD2.5 million).
Standalone financial results- Retail turnover/revenue for the fourth quarter stood at INR4,159.3 million (USD85 million). Net profit was INR164.3 million (USD3.3 million).
Nine Months - K Raheja owned Shoppers' Stop has reported its financial results for the nine months ended December 2009. Standalone gross turnover stood at INR1,130.64 crore (USD231.4 million) compared to INR1,035.68 crore (USD236.3 million) in the same period previous year. Net profit was INR33.79 crore (USD6.9 million) compared to a loss of INR46.78 crore (USD10.67 million) in the same period previous year. While Consolidated gross turnover stood at INR1,153.87 crore (USD236.2 million) compared to INR1,060.52 crore (USD242 million) last year. Net profit was INR23.30 crore (USD4.7 million) compared to a loss of INR39.16 crore (USD8.9 million) clocked last year.
Q3 - K Raheja owned Shoppers' Stop has reported its financial results for the third quarter ended December 2009. Standalone gross turnover stood at INR416.63 crore (USD85.2 million) compared to INR368.30 crore (USD84 million) in the same period previous year. Net profit was INR19.2 crore (USD3.9 million) compared to a loss of INR20.45 crore (USD4.6 million) in the same period previous year. While Consolidated gross turnover stood at INR424.13 crore (USD86.82 million) compared to INR379.99 crore (USD86.7 million) last year. Net profit was INR13.61 crore (USD2.7 million) compared to INR0.45 crore (USD0.1 million) clocked last year.
Shoppers' Stop President & CEO Govind Shrikhande said: "This growth is attributed to cost reduction, steady profit-margins and increase in sales. The company now has 176,579 square metres of retail space and is will add another 46,468 square metres in the next 15 months. In fact, sales from our loyalty card-holder segment increased by 74% and gave a huge growth momentum and also helped profit-margins. We also plan on opening three more stores by March, which will take the total number of stores to 31. In addition, we plan to open eight stores by the end of next year."
Q2 - K Raheja owned Shoppers' Stop has reported its financial results for the quarter ended September 2009. Net profit jumped to INR12.06 crore (USD2.4 million) compared to a net loss of INR11.02 crore (USD2.5 million) for the corresponding quarter last year. Gross retail turnover rose 11% to INR413.29 crore (USD84.6 million).
Q1 - K Raheja owned Shoppers' Stop has reported that its same-store sales dipped to 7.5% in first quarter of the financial year 2010, as consumers continued to spend less on lifestyle and luxury items to beat the slowdown. Shoppers' Stop CEO Govind Shrikhande said: "Apart from consumer sentiments, the film producers-multiplex conflict also led to slower sales. Overall economic conditions have had a direct impact on sales and profitability." Shoppers' Stop turned profitable in Q1 of FY2010 after posting a loss over INR63 crore (USD14.3 million) in FY2009. The company clocked net profit of INR1.01 crore (USD0.2 million) against a loss of INR21.35 crore (USD4.4 million) in the same quarter last year. This comes after cutting employee costs, other operating and administrative expenses and depreciation. The employee cost in this quarter has come down to INR18.42 crore (USD3.8 million) as against INR24.25 crore (USD5 million) last year. The operating and administrative expenses stood at INR38.32 crore (USD7.9 million) as opposed to INR45.30 crore (USD9.3 million) in the same quarter previous year. Similarly the depreciation came down to INR280.11 crore (USD58 million) as against INR303.71 crore (USD63 million) in the corresponding quarter. In addition, the company has registered gross retail turnover of INR308.19 crore (USD64 million) as compared to INR304.26 crore (USD63 million), thereby recording a growth of 1%. During the quarter, Shoppers Stop added a Shoppers Stop store at Hyderabad occupying 5,762 square metres of retail space. The company also added two stores of M.A.C at GVK One (Hyderabad) and Rajouri Garden (New Delhi). One Crossword store was added at GVK One (Hyderabad) along with an Estee Lauder store at Select City Walk (New Delhi). Shoppers' Stop Customer Care Associate and MD BS Nagesh said: "The first quarter has been significant for the company; EBIDTA has gone up substantially. Our measures to strengthen our top line and at the same time rationalise expenses have reflected very positively in our financial statement of the quarter."
2010Please note: The difference between Gross Sales and Banner Sales is owing to the company operating franchised Crossword bookstores.
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FY - Shoppers' Stop has reported its annual results for the financial year ended 31 March 2010.
Consolidated financial results- Retail turnover/revenue for the full year stood at INR24,361.8 million (USD530.3 million) compared to INR15,780.6 milion (USD323 million) clocked for the full year 2009 (31 March 2010). Net profit was INR431.9 million (USD9.38 million) up from INR358.8 million (USD7.3 million). The Consolidated Financial results comprise the results of Shoppers Stop Limited and its subsidiaries namely HyperCity Retail (w.e.f. 30 June 2010), Crossword Bookstores Limited, Upasna Trading Limited, Shoppers' Stop. Com, Shoppers' Stop Services and Gateway Multichannel Retail, the Company's proportionate share in the results of both Timezone Entertainment and Nuance Group.
Standalone financial results- Retail turnover/revenue for the full year stood at INR19,071.3 million (USD415 million) compared to INR15,465.7 milion (USD316 million) clocked for the full year 2009 (31 March 2010). Net profit was INR751.7 million (USD16.3 million) up from INR502.3 million (USD10.28 million). The Company (stand alone) is primarily engaged in the business of retail trade through retail and departmental store facilities, which constitute a single reportable
segment.
Q4 - Shoppers' Stop has reported its annual results for the fourth quarter ended 31 March 2010.
Consolidated financial results- Retail turnover/revenue for the fourth quarter stood at INR6,742.4 million (USD146.7 million) compared to INR4,241.9 million (USD86.8 million) for the same period last year. Net profit was INR77.1 million (USD1.67 million) down from INR125.7 million (USD2.5 million) last year.
Standalone financial results- Retail turnover/revenue for the fourth quarter stood at INR5,055.9 million (USD110 million) compared to INR4,159.3 milion (USD85 million) clocked for the full year 2009 (31 March 2010). Net profit was INR199.1 (USD4.3 million) up from INR164.3 million (USD3.3 million).
Shoppers' Stop - SSL (operator of large format department stores, home stores, specialty stores like Crossword, Mothercare, MAC, and hypermarkets) reported a gross retail sales of INR505.6 crore (USD110 million) for the quarter ended 31 March 2011 as against INR415.9 crore (USD85 million) in the same period previous year, witnessing a jump of 22%. EBIDTA soared to INR37.4 crore (USD8.1 million) as against INR27.1 crore (USD5.5 million), reporting a 38% rise over the corresponding period, last year. Shoppers' Stop registered gross retail sales of INR1,907.1 crore (USD428.8 million) compared to INR1,546.6 crore (USD316.6 million) for the same period last year; a growth of 23%. Net profit stood at INR75.2 crore (USD16.3 million) as against INR50.2 crore (USD10.27 million) last year, an increase of 50%. With 38 stores across 17 Indian cities, SSL continues to grow and expand its footprint both in Tier I and Tier II cities. This quarter SSL expanded its presence in West Bengal by opening 2 new Shoppers' Stop stores at Siliguri & Durgapur. Hypercity opened 1 store in Ludhiana. The company also opened 2 stores/doors of M.A.C. In addition, the group saw addition of 4 new Crossword Book stores making it 69 stores across the country.
The company added 406 thousand new members to its First Citizen Loyalty Programme. The First Citizen programme now has a base of 2 million members.
Shoppers' Stop Customer Care Associate & Managing Director Govind Shrikhande said: "We have witnessed a strong and stable environment over the past year with strong growth in like-to-like sales of 17% for the year. We are expanding steadily in metros as well as Tier-II cities, which is witnessing consumption boom and has given us access to growing number of customers. We are extremely delighted to announce that our First Citizen Loyalty Programme has crossed the 2 million mark in this quarter and is contributing to 73% of our sales.”
Shoppers' Stop and its retail invested companies operate the following number of stores/doors as on 31 March 2011.
Shoppers' Stop – 38 stores with a presence in 17 cities
HomeStop Stores (Home Décor) – 4 stores with a presence in 3 cities
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Mothercare (exclusive franchise agreement for departmental stores with Mothercare Plc UK) - 29 stores of Mothercare (including 7 standalone stores) with a presence in 11 cities. Please note: For more information on Mothercare please see Mothercare in India.
Crossword - 69 stores,
Estee Lauder - 3 standalone stores M.A.C (retail agreement with Estee Lauder) - 18 stores in Mumbai, Bangalore, Delhi, Amritsar, Chennai, Hyderabad, Pune and Kolkata, Clinique - 8 stores (including 2 standalone)
Mixed Retailing: HyperCity – 9 stores, one store each in Amritsar, Bhopal, Jaipur, Ludhiana, Navi Mumbai, Hyderabad and Bengaluru and 2 in Mumbai, spread over an area of 984 thousand square feet (91.4 thousand square metres). Hypercity CEO Mark Ashman said: "The company is confident of breaking even at store level this financial year and at the company operational level by next fiscal. For the year ended March 2011, the company clocked revenue of INR600 crore (USD130.6 million) and we are targeting INR1,000 crore (USD218 million) within a couple of years.
Discovery Club continues to grow and represents 44% of sales in Q4FY11. Total members are at 163 thousand.
LTL sales in Q4 was up by 11% and for FY11 was up 19%. Total Sales grew by 50% for Q4 and 84% for the year.
Other Initiatives: Nuance Group/Airport Retailing – 1 store in Hyderabad domestic airport and 2 stores in Bangalore domestic airport. 4 duty free stores are run by the JV Company in the international airport at Bengaluru.
TimeZone Entertainment – 12 doors.
Also note that results for Shoppers Stop do not include Hypercity, which is an associate company.
Q3 - Shoppers Stop has reported a 23.6% increase in retail sales during its third quarter ended 31 December. Sales reached INR515.91 crore (USD112.31 million) from INR417.09 crore (USD90.79 million) during the prior-year period, boosted by a robust festive season. Net profit for the third quarter soared 45% to reach INR27.86 crore (USD6.06 million). Same-store sales grew by 22%.For the nine months to December retail turnover grew 23.8% to INR1,401.54 crore (USD305.10 million). Profit increased 63.4% to INR55.25 crore (USD12.02 million). Shoppers Stop Customer Care Associate and Managing Director Govind Shrikhande said: “The year’s festivities and celebrations have contributed significantly to our third quarter results. This is indeed one of the best third quarters we have seen.”
Q2 - Shoppers Stop reported a 23% jump in turnover for its second quarter ended 30 September 2010. Turnover reached INR508.8 crore (USD109.81 million) compared to INR412.4 crore (USD89.0 million) for the prior-year period. Net profit soared 44% to INR17.4 crore (USD3.75 million) against INR12.1 crore (USD2.61 million) the previous year. "The surge in consumer confidence has given us an added impetus resulting in double-digit same store sales," Shoppers Stop Managing Director Govind Shrikhande said in the statement. Expansion has been on track and the company will continue to open stores across the country in near future, he added. During the quarter the retailer saw 10% volume growth and 30% more footfall. Much of the volume increase came from the north and east of the country and the group reported that its three stores in Kolkata enjoyed double-digit increases. In the south the group reports slower growth as some of its new stores in Bangalore and Hyderabad are cannibalising others. EBITDA as a percentage also increased. The company opened four stores during the first half of the year and expects to have opened 5-7 by the end of the year in March.
Q1 - K Raheja owned Shoppers’ Stop has reported its financial results for the first quarter to 30 June 2010. The group quadrupled net profit and sales soared owing to higher consumer demand. The group recorded net profit of INR10 crore (USD2.14 million) for the period, up from INR2.5 crore (USD530,000) during the corresponding period of 2009. Sales for the chain grew by 27% to reach INR385.7 crore (USD82.59 million) and like-for-like sales rose by 21%. Operating margin growth of 65% during the last year helped to improve the group’s EBITDA margin to 6.5%.
Customer Care Associate and Managing Director Govind Shrikhande said: “Rise in consumer confidence coupled with higher volumes, conversion ratio and transaction size has given us good growth.” Shoppers Stop currently has 30 stores with a presence in 13 cities across India.
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Market Shares by Banner (2010)
Store Format Banner MGD Grocery sales, market share %
Banner Sales (INR)
Book stores Crossword 1,500,000,000
Clothing stores Shoppers' Stop 15,148,000,000
Coffee shops/tea houses Cafe Brio 264,312,000
Duty free stores Nuance Group/Airport Retailing 0.00 45,554,900
Home furnishing stores HomeStop 221,300,000
Hypermarkets Hypercity 0.03 5,999,999,500
Other revenues Timezone 1,205,003,100
Perfumeries/beauty stores Arcelia 0.00 97,300,000
Perfumeries/beauty stores M.A.C 0.00 117,300,000
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Category Sales (2010)
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Grocery / Non-Grocery Banner Sales
2010 (INR)
Grocery 3,088,337,700
Non-Grocery 16,854,709,648
Other 4,655,722,150
EEO / Non-EEO Banner Sales
2010 (INR)
EEO Banner Sales 1,688,115,473
Non-EEO Banner Sales 22,910,654,025
Grand Total 24,598,769,498
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Sales by Category (2010)
Product Category Type Consumer Spending Group Product Category Banner Sales (INR)
Grocery Grocery Alcoholic drinks 188,063,202
Grocery Grocery Ambient 1,267,213,624
Grocery Grocery Chilled 425,999,964
Grocery Grocery Frozen 233,999,980
Grocery Grocery Fruit & vegetables 305,999,974
Grocery Grocery Household care 185,999,985
Grocery Grocery Non-alcoholic drinks 294,273,305
Grocery Grocery Pet care 113,999,990
Grocery Grocery Tobacco 72,787,675
Non-Grocery Clothing, footwear & jewellery Clothing & footwear 14,043,698,013
Non-Grocery Clothing, footwear & jewellery Watches & jewellery 311,570,274
Non-Grocery Consumer electronics Electricals (brown goods) 1,863,195
Non-Grocery Consumer electronics Electricals (white goods) 6,904,560
Non-Grocery DIY & furniture Furniture & floorcoverings 193,770,280
Non-Grocery DIY & furniture Household textiles 11,065,000
Non-Grocery Entertainment Entertainment 1,546,541,065
Non-Grocery Foodservice HoReCa food 44,933,040
Non-Grocery Foodservice HoReCa non-alcoholic drinks 198,234,000
Non-Grocery Health & beauty Health & beauty care 359,496,957
Non-Grocery Office supplies Stationery 132,806,653
Non-Grocery Sports & leisure Toys 3,826,612
Other Other Other 2,872,236,965
Other Other Other non-grocery 575,770,571
Other Other Services 1,207,714,614
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Retail Technology Table by Retailer
Retailer Type of Technology IT Vendor
K Raheja Corp in India General IT Strategy JDA
Netezza
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IT
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Supply Chain
Distribution Network
Shoppers' Stop operates four DCs located in Mumbai, Bangalore, Kolkata and Delhi.
With regards to HyperCITY, CEO Andrew Levermore explained in an interview the problems with the country's supply chains: “Add a poor road infrastructure and it means that goods transportation is affected by a multitude of small vehicles. A store format like HyperCITY would, in the West, receive four to six deliveries per day via articulated trucks. The product would be pre-retailed, packaged, barcoded and ready for the sales floor. In our case our back doors deal with up to 250 deliveries a day from pushcarts to little three-wheeler vans. Some of this product will require barcoding. Some of the smaller suppliers will require payment there and then.”
As of 2008, HyperCITY operated from two warehouses covering a total of 35,000 square metres, which will be catering to multiple stores in Mumbai region and will be the National Distribution Center for imported merchandise. This warehouse is also catering to HyperCity Argos.
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Suplier Collaboration
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Arcelia (Perfumeries/beauty stores)
Arcelia In A Page
Total Sales Number of Stores Website
India - INR 24.6 billion India - 179
Arcelia - INR 97.3 million Arcelia - 5
CAGR Senior Management Location
India - 29% Construction House ‘A’,
24th Road, Khar (West),
Mumbai – 400 052
Arcelia - 0%
Summary
Arcelia stores offer a wide range of beauty and personal care products. The store occupies an average of 464 square metres and offers cosmetics, perfumes, watches and sunglasses.
Please note: To avoid double-counting, store operations data relates to stand-alone stores only.
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Interactive Retail Dashboard
Sales
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Market Share
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Number of Stores
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Category Trends
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Ownership
Shoppers' Stop operates Arcelia stores.
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Store Concepts
Arcelia stores offer a wide range of beauty and personal care products. The store occupies an average of 464 square metres and offers cosmetics, perfumes, watches and sunglasses.
Please note: To avoid double-counting, store operations data relates to stand-alone stores only.
Private Labels
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Store Data
Number of Outlets
2010
Number Of Owned Outlets
Number Of Franchised Outlets
Number Of Independant Outlets
Number Of Outlets 5
Number Of Checkouts 15
Size of Outlets
2010
Average Sales Area SQFT 4,994
Total Sales Area SQFT 24,972
Category Sales (2010)
2010 (INR)
Non-Grocery 91,676,060
Other 5,623,940
EEO Sales (2010)
2010 (INR)
Non-EEO Banner Sales 97,300,000
Grand Total 97,300,000
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Market Shares (2010)
MGD Grocery sales, market share % Banner Sales (INR)
0.00 97,300,000
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Category Sales (2010)
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Category Sales (2010)
Product Category Type Product Category Banner Sales (INR)
Non-Grocery Clothing & footwear 934,080
Non-Grocery Health & beauty care 90,741,980
Other Other 758,940
Other Other non-grocery 4,865,000
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Developments
2007
December - Shoppers' Stop opened a store in MGF Saket (New Delhi) and with the opening of this store taking the total to 23 stores. The company has also started 'Clinique' a cosmetic branded store through a stand alone format. Shopper's Stop has also started other brand stores under its operation. These stores are either shop in shop stores within the existing stores or as a separate stand alone store at various locations. These include three Homestop, Arcelia, Airport Retailing, 24 food and beverage outlets (including) food courts, Clinique, Crossword and Mothercare.
September - Shoppers Stop has opened its first pilot beauty and personal care products store Arcelia in Pune occupying 464 square metres offering cosmetics, perfumes, watches and sunglasses. By running this pilot project for a chain of beauty and personal care products the company is aiming to create a presence in the health and beauty retail segment of the country.
2008
June - Shopper's Stop has launched Stop & Go (airport retailing) at the Bangalore International Airport in India. With the addition of this store, the company now operates 129 stores across different formats across the country. The group operates 24 Shopper's Stop, three Home Stop, two Arcelia, three Stop & Go, four MAC, 25 Cafe Brio/Desi Cafe (including two food courts), one Clinique, 48 Crossword (including 11 shop-in-shops and 37 standalone stores) 19 Mothercare (ten shop-in-shops and nine standalones). Shopper's Stop occupies an area of 139,405 square metres.
April - According to reports in the Indian press, Shoppers' Stop has announced the launch of its second Stop & Go format store in Hyderabad International Airport. The first Stop & go store is already operational in Mumbai Airport. Stop & Go consists of a Shoppers' Stop and Desi Cafe operating out of an airport. At present the company operates 24 Shoppers' Stop, three Home Stop, two Arcelia, two Stop & Go, four MAC, 25 Brio/Desi Cafe, one Clinique, 48 Crossword (eleven of which are shop in shop formats) and 18 Mothercare (ten of which are shop in shop formats).
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Cafe Brio (Coffee shops/tea houses)
Cafe Brio In A Page
Total Sales Number of Stores Website
India - INR 24.6 billion India - 179 www.krahejacorp.com
Cafe Brio - INR 264.3 million Cafe Brio - 25
CAGR Senior Management Location
India - 29% Construction House ‘A’,
24th Road, Khar (West),
Mumbai – 400 052
Cafe Brio - 0%
Summary
Chain of coffee & snack shops and also includes food and beverage outlets.
In 2009, Shoppers' Stop moved out of the food business after announcing that its Café Brio outlets would be replaced with Café Coffee Day outlets over the next couple of months. SS BS Nagesh Managing Director said: "We have taken a call to close those ventures which are taking a longer time to break even."
Please note: To avoid double-counting, store operations data relates to stand-alone stores only.
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Interactive Retail Dashboard
Sales
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Market Share
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Number of Stores
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Category Trends
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Store Concepts
Chain of coffee & snack shops and also includes food and beverage outlets.
In 2009, Shoppers' Stop moved out of the food business after announcing that its Café Brio outlets would be replaced with Café Coffee Day outlets over the next couple of months. SS BS Nagesh Managing Director said: "We have taken a call to close those ventures which are taking a longer time to break even."
Please note: To avoid double-counting, store operations data relates to stand-alone stores only.
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Store Data
Number of Outlets
2010
Number Of Owned Outlets
Number Of Franchised Outlets
Number Of Independant Outlets
Number Of Outlets 25
Number Of Checkouts 25
Size of Outlets
2010
Average Sales Area SQFT 1,615
Total Sales Area SQFT 40,365
Category Sales (2010)
2010 (INR)
Grocery 7,929,360
Non-Grocery 243,167,040
Other 13,215,600
EEO Sales (2010)
2010 (INR)
Non-EEO Banner Sales 264,312,000
Grand Total 264,312,000
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Market Shares (2010)
Foodservice Food sales market share % Banner Sales (INR)
0.00 264,312,000
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Category Sales (2010)
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Category Sales (2010)
Product Category Type Product Category Banner Sales (INR)
Grocery Ambient 7,929,360
Non-Grocery HoReCa food 44,933,040
Non-Grocery HoReCa non-alcoholic drinks 198,234,000
Other Other non-grocery 13,215,600
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Developments
2008
June - Shopper's Stop has launched Stop & Go (airport retailing) at the Bangalore International Airport in India. With the addition of this store, the company now operates 129 stores across different formats across the country. The group operates 24 Shopper's Stop, three Home Stop, two Arcelia, three Stop & Go, four MAC, 25 Cafe Brio/Desi Cafe (including two food courts), one Clinique, 48 Crossword (including 11 shop-in-shops and 37 standalone stores) 19 Mothercare (ten shop-in-shops and nine standalones). Shopper's Stop occupies an area of 139,405 square metres.
February - According to reports in the Indian press, Shoppers' Stop Managing Director B S Nagesh denied media reports about the company being sold off. As per local papers, the parent company (K Raheja) is looking to sell Shopper's Stop, as well as its other retail formats Home Stop, Crossword, Stop & Go and Brio. Nagesh said, "These are just baseless market rumours. There is no credibility whatsoever. Shopper's Stop is not for sale." Reports quoted unnamed sources saying that Reliance Retail and Aditya Birla Retail are taking a serious look at the sales talk. At present, Shopper's Stop operates 23 stores in 12 cities across the country.
2009
June - K Raheja owned Shoppers' Stop will invest about INR40 crore (USD7.6 million) in the current fiscal to roll out more stores. Shoppers' Stop Customer Care Associate and Managing Director BS Nagesh said: "We have just opened our 27th store in Hyderabad and we plan to open 3-4 stores this fiscal at an investment of INR10 crore (USD1.9 million) each. The group has also signed agreements for more outlets and hence could end the year with 30-35 stores. The expansion is being funded through internal accruals. There is definitely another two quarters of pain left. We expect a turnaround in the January-March quarter of 2010. But, we see margins improving from October-December because of the festival season." Following earlier announcements, the group closed its bookstore format, Crossword, in Chennai, New Delhi and Mumbai airports, it also shut down its airport retail venture Stop & Go in Mumbai. In January this year, the company also reported winding up Argos and Brio format. "Shoppers' Stop would focus on consolidating its operations and there will be no new joint ventures this year. The Government should allow FDI to come through because it would bring in expertise which would help the sector grow," Nagesh added.
May - "Shoppers Stop plans to open 12 more outlets with a total area of 60 thousand square metres in the next three years by taking advantage of the fall in mall rentals, reversal of service tax thereon and possible revival in the economy. The company required a capex of INR91 crore (USD17.4 million) on the store openings and INR32.50 crore (USD6.2 million) on the inventory for these 12 stores. The company was planning to fund the expansion from internal accruals, debt and possible equity infusion," a company official reported. The company plans to open four stores this fiscal in cities including the likes of Bangalore, Ahmedabad and Hyderabad, moreover four each in the next two fiscals, each store measuring around 5,111 square metres. As per sources, mall rentals have fallen 35-40% in some cities from their peak in the past couple of years. Shoppers Stop (SS) Chief Executive Govind Shrikhande said: "Property rates make it lucrative to expand. We also have outdrawn limits of INR90 crore (USD17.2 million)." SS closed down over a dozen unviable stores in FY 2009. It also moved out of the food business after announcing that its Café Brio outlets would be replaced with Café Coffee Day outlets over the next couple of months. SS BS Nagesh Managing Director said: "We have taken a call to close those ventures which are taking a longer time to break even." In March, the company closed three of its Crossword book stores – one at the Mumbai airport and two in Chennai and New Delhi. The company also closed its airport retail store Stop & Go at Mumbai airport. "The last fiscal was one of the toughest for retailers and we feel the first quarter will also be difficult. We expect things to pick up after Diwali (Oct) this year and a good year thereafter," Shrikhande said. "However, the company does not have plans to expand its speciality business in a big way this fiscal," Nagesh added.
March - According to unconfirmed reports in the local press, K Raheja Group owned Shoppers' Stop is planning to shut down three of its Crossword book stores, one in Mumbai and two in Chennai. The company has also closed down its airport retail store Stop & Go at the Mumbai airport. Following earlier announcements, the company has pulled out of the HyperCity Argos catalogue retailing. In addition, it has also moved out of food business wherein its Cafe' Brio outlets would be replaced with Cafe Coffee Day outlets over the next couple of months.
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Company Report - K Raheja Corp in India
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January - K Raheja owned Shopper's Stop has reported closing down its Brio Cafe in Noida and opening another one in Jaipur. At present, the company operates 21 Brio Cafes outlets across the country.
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Crossword (Book stores)
Crossword In A Page
Total Sales Number of Stores Website
India - INR 24.6 billion India - 179 www.crosswordbookstores.com
Crossword - INR 1.5 billion Crossword - 72
CAGR Senior Management Location
India - 29% Eureka Towers
9th Floor, C - Wing, Plot No 504,
Link Road, Malad (W)
Mumbai – 400 064
Crossword - 27%
Summary
Crossword is engaged in the business of retailing of books, music and stationery. Crossword claims that it was one of the first book stores in India to design large, spacious, well laid out stores with bright interiors that encourage people to stay and browse.
As well as stand alone stores, some are also located inside the premises of Shopper’s Stop stores.
Please note: To avoid double-counting, store operations data relates to stand-alone stores only.
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Interactive Retail Dashboard
Sales
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Market Share
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Number of Stores
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Category Trends
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Ownership
2011: Avendus appointed to explore sale, alliance options.
2010: From a division, Crossword Bookstores becomes a wholly-owned subsidiary of Shopper's Stop.
2006: Sriram steps down, floats consulting company.
2005: Shoppers completes Crossword acquisition, buys out ICICI Ventures.
The company is a subsidiary of Shoppers' Stop Ltd, which holds a 100% stake, after acquiring the 49% held by its partner, ICICI emerging Sectors Fund, in July 2005.
Crossword Bookstores Limited was incorporated on 3 November 1999, as Profound Reader’s Choice Trading (India) Private Limited under the Companies Act, 1956. The name of the Company was changed to Crossword Bookstores Limited on 22 February 2001.
2000: Srirams arrange buyout of Crossword by Shoppers Stop for INR25 crore (USD5.5 million), continue as CEO & MD. ICICI Ventures picks up 49% in Crossword.
1992: R Sriram and K Anita launch a bookstore chain in Mumbai after stints in Landmark (1988) & launching Walden in Hyderabad (1990). India Book House becomes initial investor.
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Company Report - K Raheja Corp in India
14 April 2023
Store Concepts
Crossword is engaged in the business of retailing of books, music and stationery. Crossword claims that it was one of the first book stores in India to design large, spacious, well laid out stores with bright interiors that encourage people to stay and browse.
As well as stand alone stores, some are also located inside the premises of Shopper’s Stop stores.
Please note: To avoid double-counting, store operations data relates to stand-alone stores only.
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Company Report - K Raheja Corp in India
14 April 2023
Store Data
Number of Outlets
2010
Number Of Owned Outlets
Number Of Franchised Outlets
Number Of Independant Outlets
Number Of Outlets 72
Number Of Checkouts 288
Size of Outlets
2010
Average Sales Area SQFT 5,328
Total Sales Area SQFT 383,626
Category Sales (2010)
2010 (INR)
Non-Grocery 1,490,250,000
Other 9,750,000
EEO Sales (2010)
2010 (INR)
EEO Banner Sales 1,490,250,000
Non-EEO Banner Sales 9,750,000
Grand Total 1,500,000,000
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Company Report - K Raheja Corp in India
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Market Shares (2010)
EEO sales market share % EEO Banner Sales (INR)
0.00 1,490,250,000
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Category Sales (2010)
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Company Report - K Raheja Corp in India
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Category Sales (2010)
Product Category Type Product Category Banner Sales (INR)
Non-Grocery Entertainment 1,358,400,000
Non-Grocery Stationery 131,850,000
Other Other 9,750,000
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Company Report - K Raheja Corp in India
14 April 2023
Developments
2000
Shoppers' Stop acquired Crossword, one of India’s leading book retailing chain, from India Book House in partnership with ICICI Trusteeship Services Limited (A/c ICICI Emerging Sectors Fund).
2005
July - Shoppers' Stop Ltd acquires the 49% stake in Crossword it did not already own from ICICI emerging Sectors Fund.
2006
November - Crossword opens it 38th outlet, with the company aiming to have 45 stores by March 2007.
2007
June - Crossword is looking to open up stores in airports and hotels. Overall plans call for 100 stores by 2010-11. The company currently runs 44 stores.
2008
June - Shopper's Stop has launched Stop & Go (airport retailing) at the Bangalore International Airport in India. With the addition of this store, the company now operates 129 stores across different formats across the country. The group operates 24 Shopper's Stop, three Home Stop, two Arcelia, three Stop & Go, four MAC, 25 Cafe Brio/Desi Cafe (including two food courts), one Clinique, 48 Crossword (including 11 shop-in-shops and 37 standalone stores) 19 Mothercare (ten shop-in-shops and nine standalones). Shopper's Stop occupies an area of 139,405 square metres.
March - According to reports in the Indian press, following earlier announcements of Shoppers' Stop signing a memorandum of understanding with Argos (UK) for catalogue, online and home shopping in February. The company is planning to set up online retailing for Shoppers' Stop and Crossword by next quarter. Shoppers' Stop managing director B S Nagesh said, "We are planning to take the Shoppers' Stop and Crossword brands online by the end of the next quarter, whereas the Hypercity Argos online site which is already operational will become transactional by May."
March - According to reports in the Indian press, Shoppers' Stop is planning to add 250,929 square metres to its existing 120,818 square metres over the next three to four years. Shoppers' Stop customer care associate and chief executive officer Govind Shrikhande said, "We are looking at an investment of more than INR250 crore (USD63 million) over almost four years." The company has earmarked INR50 crore (USD13 million) for increasing its stake in HyperCity from the current 19% to 50% by December this year. The company is planning to set up 24 stores across 24 cities within the next four years. The company has also earmarked INR150 crore (USD40 million) to expand Mothercare, Crossword Book Store and HomeStop stores and aims at investing INR25 crore (USD6 million) in its airport retailing venture with Nuance Group AG. "The investment will be funded through the rights issue and internal accrual," he said. According to company sources, "The rights issue is likely to be filed within next three to four weeks and the subscription for that is likely to get over last week of May, this year. The rights issue will consist of INR300 crore (USD76 million) equity component and around INR200 crore (USD51 million) of debt. Shoppers' Stop is also looking at increasing the size of its new stores from the existing 6,041 to 7,900 square metres, which will give it space for another 50-80 brands."
February - According to reports in the Indian press, Shoppers' Stop Managing Director B S Nagesh denied media reports about the company being sold off. As per local papers, the parent company (K Raheja) is looking to sell Shopper's Stop, as well as its other retail formats Home Stop, Crossword, Stop & Go and Brio. Nagesh said, "These are just baseless market rumours. There is no credibility whatsoever. Shopper's Stop is not for sale." Reports quoted unnamed sources saying that Reliance Retail and Aditya Birla Retail are taking a serious look at the sales talk. At present, Shopper's Stop operates 23 stores in 12 cities across the country.
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Company Report - K Raheja Corp in India
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January - According to reports in the Indian press, Crossword is planning to start its own private label business (stationery, music, toys and other categories) in March. The move is aimed at increasing margins to around 8% from the current 4% for stationery. At present, the company operates 46 stores and non-book categories (pens, stationery, toys and music) currently account for 40-42% of all sales. Shoppers' Stop CFO C B Navalkar said, "There is a limited potential for private labels in books. Not all books do well and those, such as Harry Potter or John Grisham’s novels that do well are not open to smaller publishing houses. The non-book business is a less organized business and that is where we will look to create our private labels."
2009
June - K Raheja owned Crossword launched its third store in Hyderabad at the GVK One Mall taking the total store count up to 50 across the country. Crossword National Operation Manager Mohit Gadia said: "The store stocks a wide variety of books, movies, music, CD-ROMs and stationery."
June - K Raheja owned Shoppers' Stop will invest about INR40 crore (USD7.6 million) in the current fiscal to roll out more stores. Shoppers' Stop Customer Care Associate and Managing Director BS Nagesh said: "We have just opened our 27th store in Hyderabad and we plan to open 3-4 stores this fiscal at an investment of INR10 crore (USD1.9 million) each. The group has also signed agreements for more outlets and hence could end the year with 30-35 stores. The expansion is being funded through internal accruals. There is definitely another two quarters of pain left. We expect a turnaround in the January-March quarter of 2010. But, we see margins improving from October-December because of the festival season." Following earlier announcements, the group closed its bookstore format, Crossword, in Chennai, New Delhi and Mumbai airports, it also shut down its airport retail venture Stop & Go in Mumbai. In January this year, the company also reported winding up Argos and Brio format. "Shoppers' Stop would focus on consolidating its operations and there will be no new joint ventures this year. The Government should allow FDI to come through because it would bring in expertise which would help the sector grow," Nagesh added.
May - "Shoppers Stop plans to open 12 more outlets with a total area of 60 thousand square metres in the next three years by taking advantage of the fall in mall rentals, reversal of service tax thereon and possible revival in the economy. The company required a capex of INR91 crore (USD17.4 million) on the store openings and INR32.50 crore (USD6.2 million) on the inventory for these 12 stores. The company was planning to fund the expansion from internal accruals, debt and possible equity infusion," a company official reported. The company plans to open four stores this fiscal in cities including the likes of Bangalore, Ahmedabad and Hyderabad, moreover four each in the next two fiscals, each store measuring around 5,111 square metres. As per sources, mall rentals have fallen 35-40% in some cities from their peak in the past couple of years. Shoppers Stop (SS) Chief Executive Govind Shrikhande said: "Property rates make it lucrative to expand. We also have outdrawn limits of INR90 crore (USD17.2 million)." SS closed down over a dozen unviable stores in FY 2009. It also moved out of the food business after announcing that its Café Brio outlets would be replaced with Café Coffee Day outlets over the next couple of months. SS BS Nagesh Managing Director said: "We have taken a call to close those ventures which are taking a longer time to break even." In March, the company closed three of its Crossword book stores – one at the Mumbai airport and two in Chennai and New Delhi. The company also closed its airport retail store Stop & Go at Mumbai airport. "The last fiscal was one of the toughest for retailers and we feel the first quarter will also be difficult. We expect things to pick up after Diwali (Oct) this year and a good year thereafter," Shrikhande said. "However, the company does not have plans to expand its speciality business in a big way this fiscal," Nagesh added.
March - According to unconfirmed reports in the local press, K Raheja Group owned Shoppers' Stop is planning to shut down three of its Crossword book stores, one in Mumbai and two in Chennai. The company has also closed down its airport retail store Stop & Go at the Mumbai airport. Following earlier announcements, the company has pulled out of the HyperCity Argos catalogue retailing. In addition, it has also moved out of food business wherein its Cafe' Brio outlets would be replaced with Cafe Coffee Day outlets over the next couple of months.
January - K Raheja owned Crossword has announced opening up another store in Ishanya mall, Pune. The latest store is a franchisee outlet and at present the company operates 55 stores across the country.
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January - K Raheja owned Crossword has reported shutting down its stores located at Ghaziabad. With the closure the group has been left with 54 stores under the banner name in Ahmedabad, Bangalore, Chennai, Hyderabad, Jaipur, Kolkata, Mumbai, Nagpur, New Delhi, Pune, Vadodara, and Vishakhapatnam.
2010
November - Crossword Bookstoreshas opened a new outlet in Chennai and is planning to open new stores in Bangalore and Mumbai next year, which will take its store count to 70 stores. In an interview with IndiaRetailing, Marketing Manager of Crossword Bookstores, Sivaraman Balakrishnan said that the new stores were being designed with a larger seating area, an exclusive events area and larger browsing aisles in order “to keep customers engaged for a much longer duration in the store.” The merchandise mix will be contain 55% books together with other items such as music, stationery, DVDs and toys.
October - Shopper's Stop Ltd has opened a Crossword store at Hypercity, Bhopal, taking its count to 65 stores.
January - K Raheja owned Crossword has opened its store in Hypercity, Thane. The store offers a wide variety of products including books, movies, music, CD-ROMs and stationery and other lifestyle products.
2011
June - K Raheja may exit Crossword, its book retailing business, eleven years after buying the bookstores as the promoter of Shopper's Stop is reviewing the future of the book retailing chain. According to sources, the company is exploring various options, including alliances and may even exit the business altogether. The group is being advised by investment bank Avendus.
Formerly a division, Crossword Bookstores is now a wholly-owned subsidiary of Shopper's Stop. It has 72 stores, both company-owned and franchisees, most of these are located in west and south India. Crossword, according to unconfirmed sources, clocked INR150 crore (USD33 million) revenue in 2010-11 and EBITDA of INR5 crore (USD1 million) in a landscape where online players such as Amazon and Kindle are as much a threat as other brick-and-mortar chains such as the Tata owned Landmark. Shopper's Stop Vice Chairman and Non Executive Director B S Nagesh did not want to comment on operational issues as he was no longer manning the company's day-to-day business. Industry sources are of the opinion that most big retailers would be keen to examine any opportunity to buy Crossword. While Tata Group is the only mutli-brand retailer with standalone bookstores - Landmark, companies such as Reliance Retail, Future Group, Aditya Birla Retail and RPG’s Spencer could be potential suitors. Sources said Crossword promoters expected one-two time sales as a fair valuation but added that any deal might be some time away.
April - K Raheja Shoppers' Stop has reported its financial results for the quarter. Shoppers' Stop and its retail invested companies operate the following number of stores/doors as on 31 March 2011.
Shoppers' Stop – 38 stores with a presence in 17 cities
HomeStop Stores (Home Décor) – 4 stores with a presence in 3 cities
Mothercare (exclusive franchise agreement for departmental stores with Mothercare Plc UK) - 29 stores of Mothercare (including 7 standalone stores) with a presence in 11 cities. Please note: For more information on Mothercare please see Mothercare in India.
Crossword - 69 stores,
Estee Lauder - 3 standalone stores M.A.C (retail agreement with Estee Lauder) - 18 stores in Mumbai, Bangalore, Delhi, Amritsar, Chennai, Hyderabad, Pune and Kolkata, Clinique - 8 stores (including 2 standalone)
Mixed Retailing: HyperCity – 9 stores, one store each in Amritsar, Bhopal, Jaipur, Ludhiana, Navi Mumbai, Hyderabad and Bengaluru and 2 in Mumbai, spread over an area of 984 thousand square feet (91.4 thousand square metres)
Discovery Club continues to grow and represents 44% of sales in Q4FY11. Total members are at 163 thousand.
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LTL sales in Q4 was up by 11% and for FY11 was up 19%. Total Sales grew by 50% for Q4 and 84% for the year.
Other Initiatives: Airport Retailing – 1 store in Hyderabad domestic airport and 2 stores in Bangalore domestic airport. 4 duty free stores are run by the JV Company in the international airport at Bengaluru.
TimeZone Entertainment – 12 doors.
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Company Report - K Raheja Corp in India
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Estee Lauder (Perfumeries/beauty stores)
Estee Lauder In A Page
Total Sales Number of Stores Website
India - INR 24.6 billion India - 179 www.maccosmetics.com
Estee Lauder - INR 0 Estee Lauder - 0
CAGR Senior Management Location
India - 29% Eureka Towers
9th Floor, C - Wing, Plot No 504
Link Road, Malad (W)
Mumbai – 400 064
Estee Lauder - 0%
Summary
Shoppers' Stop has entered into a non-exclusive retail agreement with Estee Lauder to open stores for brands like Estee Lauder, M.A.C. and Clinique. Although most of the stores operate through shop-in-shop format within Shoppers' Stop stores but there are a few standalone stores as well.
M.A.C. - Upmarket cosmetics format.
Please note: To avoid double-counting, store operations data relates to stand-alone stores only.
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Interactive Retail Dashboard
Sales
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Market Share
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Number of Stores
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Category Trends
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Ownership
Shoppers' Stop Ltd holds the MAC license for India from Estee Lauder.
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Company Report - K Raheja Corp in India
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Store Concepts
Shoppers' Stop has entered into a non-exclusive retail agreement with Estee Lauder to open stores for brands like Estee Lauder, M.A.C. and Clinique. Although most of the stores operate through shop-in-shop format within Shoppers' Stop stores but there are a few standalone stores as well.
M.A.C. - Upmarket cosmetics format.
Please note: To avoid double-counting, store operations data relates to stand-alone stores only.
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Store Data
Number of Outlets
2010
Number Of Owned Outlets
Number Of Franchised Outlets
Number Of Independant Outlets
Number Of Outlets 7
Number Of Checkouts 21
Size of Outlets
2010
Average Sales Area SQFT 1,615
Total Sales Area SQFT 11,302
Category Sales (2010)
2010 (INR)
Non-Grocery 110,520,060
Other 6,779,940
EEO Sales (2010)
2010 (INR)
Non-EEO Banner Sales 117,300,000
Grand Total 117,300,000
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Market Shares (2010)
MGD Grocery sales, market share % Banner Sales (INR)
0.00 117,300,000
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Category Sales (2010)
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Category Sales (2010)
Product Category Type Product Category Banner Sales (INR)
Non-Grocery Clothing & footwear 1,126,080
Non-Grocery Health & beauty care 109,393,980
Other Other 914,940
Other Other non-grocery 5,865,000
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Developments
2005
June - First MAC store opens in India.
2008
June - Shopper's Stop has launched Stop & Go (airport retailing) at the Bangalore International Airport in India. With the addition of this store, the company now operates 129 stores across different formats across the country. The group operates 24 Shopper's Stop, three Home Stop, two Arcelia, three Stop & Go, four MAC, 25 Cafe Brio/Desi Cafe (including two food courts), one Clinique, 48 Crossword (including 11 shop-in-shops and 37 standalone stores) 19 Mothercare (ten shop-in-shops and nine standalones). Shopper's Stop occupies an area of 139,405 square metres.
2010
November - K Raheja Corp has opened a new MAC store in Chennai bringing the total number of outlets to sixteen.
2011
April - K Raheja Shoppers' Stop has reported its financial results for the quarter. Shoppers' Stop and its retail invested companies operate the following number of stores/doors as on 31 March 2011.
Shoppers' Stop – 38 stores with a presence in 17 cities
HomeStop Stores (Home Décor) – 4 stores with a presence in 3 cities
Mothercare (exclusive franchise agreement for departmental stores with Mothercare Plc UK) - 29 stores of Mothercare (including 7 standalone stores) with a presence in 11 cities. Please note: For more information on Mothercare please see Mothercare in India.
Crossword - 69 stores,
Estee Lauder - 3 standalone stores M.A.C (retail agreement with Estee Lauder) - 18 stores in Mumbai, Bangalore, Delhi, Amritsar, Chennai, Hyderabad, Pune and Kolkata, Clinique - 8 stores (including 2 standalone)
Mixed Retailing: HyperCity – 9 stores, one store each in Amritsar, Bhopal, Jaipur, Ludhiana, Navi Mumbai, Hyderabad and Bengaluru and 2 in Mumbai, spread over an area of 984 thousand square feet (91.4 thousand square metres)
Discovery Club continues to grow and represents 44% of sales in Q4FY11. Total members are at 163 thousand.
LTL sales in Q4 was up by 11% and for FY11 was up 19%. Total Sales grew by 50% for Q4 and 84% for the year.
Other Initiatives: Airport Retailing – 1 store in Hyderabad domestic airport and 2 stores in Bangalore domestic airport. 4 duty free stores are run by the JV Company in the international airport at Bengaluru.
TimeZone Entertainment – 12 doors.
February - Shoppers Stop has opened its fourth Estee Lauder concession in India at Vasant Kunj, New Delhi. The company now has four Estee Lauder stores, three standalone and one shop-in-shop. Shoppers Stop also recently opened its 17th M.A.C. cosmetics store with the opening of a shop-in-shop at Shoppers Stop in Bangalore.
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ExpressCITY (Neighbourhood stores)
ExpressCITY In A Page
Total Sales Number of Stores Website
India - INR 14.1 billion India - 140 www.hypercityindia.com
ExpressCITY - INR 41.6 million ExpressCITY - 3
CAGR Senior Management Location
India - 28% Banner Director
Mr Andrew Levermore
Construction House ‘A’,
24th Road, Khar (West),
Mumbai – 400 052
ExpressCITY - 0%
Summary
ExpressCITY is a convenience/neighbourhood store format of around 280 square metre launched in August 2007. The company believes there could be scope for up to 400 stores.
As of May, K Raheja-owned HyperCITY Retail has abandoned plans announced last year to launch a neighbourhood store format under the ExpressCITY banner. The emphasis will shift instead to big box formats and multi-channel retailing. HyperCITY CEO Andrew Levermore said: "The experiment with the convenience format has been put on the back burner for now. It is clear that the HyperCITY format delivers greater returns than the small format (ExpressCITY) in the retail space, so we have decided to expand HyperCITY. We may revisit the small convenience format experiment at some point in the future."
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Company Report - K Raheja Corp in India
14 April 2023
Interactive Retail Dashboard
Sales
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Company Report - K Raheja Corp in India
14 April 2023
Market Share
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Company Report - K Raheja Corp in India
14 April 2023
Number of Stores
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PlanetRetail
Company Report - K Raheja Corp in India
14 April 2023
Category Trends
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Company Report - K Raheja Corp in India
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Management
Mr Andrew Levermore
Banner Director - CEO HyperCITY Retail
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PlanetRetail
Company Report - K Raheja Corp in India
14 April 2023
Ownership
Hypercity Retail (India) Ltd was launched by Inorbit Malls Private Limited, a K Raheja Corp company. Initially known as Rainbow Retail Private Limited, the name of the company was changed to Hypercity Retail (India) Pvt Ltd in March 2005. The first HyperCITY hypermarket opened in 2006.
K Raheja Corp's subsidiary Shoppers' Stop Ltd has the option of acquiring a 51% stake in HyperCITY Retail before December 2008. From March 2007, Shoppers Stop has held a 19% in the company.
117www.planetretail.net - Planet Retail 2010
PlanetRetail
Company Report - K Raheja Corp in India
14 April 2023
Store Concepts
ExpressCITY is a convenience/neighbourhood store format of around 280 square metre launched in August 2007. The company believes there could be scope for up to 400 stores.
As of May, K Raheja-owned HyperCITY Retail has abandoned plans announced last year to launch a neighbourhood store format under the ExpressCITY banner. The emphasis will shift instead to big box formats and multi-channel retailing. HyperCITY CEO Andrew Levermore said: "The experiment with the convenience format has been put on the back burner for now. It is clear that the HyperCITY format delivers greater returns than the small format (ExpressCITY) in the retail space, so we have decided to expand HyperCITY. We may revisit the small convenience format experiment at some point in the future."
Private Labels
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PlanetRetail
Company Report - K Raheja Corp in India
14 April 2023
Store Data
Number of Outlets
2008
Number Of Owned Outlets
Number Of Franchised Outlets
Number Of Independant Outlets
Number Of Outlets 3
Number Of Checkouts 9
Size of Outlets
2008
Average Sales Area SQFT 1,615
Total Sales Area SQFT 4,844
Category Sales (2008)
2008 (INR)
Grocery 38,105,949
Non-Grocery 2,474,682
Other 1,010,669
EEO Sales (2008)
2008 (INR)
EEO Banner Sales 1,152,079
Non-EEO Banner Sales 40,439,221
Grand Total 41,591,300
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PlanetRetail
Company Report - K Raheja Corp in India
14 April 2023
Market Shares (2008)
MGD Grocery sales, market share % Banner Sales (INR)
0.00 41,591,300
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Company Report - K Raheja Corp in India
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Category Sales (2008)
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Company Report - K Raheja Corp in India
14 April 2023
Category Sales (2008)
Product Category Type Product Category Banner Sales (INR)
Grocery Alcoholic drinks 1,226,943
Grocery Ambient 12,984,804
Grocery Chilled 9,936,162
Grocery Frozen 2,071,247
Grocery Fruit & vegetables 7,166,181
Grocery Household care 894,213
Grocery Non-alcoholic drinks 2,175,225
Grocery Pet care 1,031,464
Grocery Tobacco 619,710
Non-Grocery Entertainment 361,844
Non-Grocery Health & beauty care 910,849
Non-Grocery HoReCa food 149,729
Non-Grocery HoReCa non-alcoholic drinks 116,456
Non-Grocery Household textiles 145,570
Non-Grocery Office 361,844
Non-Grocery Stationery 428,390
Other Other 603,074
Other Other non-grocery 407,595
123www.planetretail.net - Planet Retail 2010
PlanetRetail
Company Report - K Raheja Corp in India
14 April 2023
Developments
2007
August - The first three ExpressCITY stores open in Jaipur and Rajasthan.
July - K Raheja confirms it will launch two new store formats. The first is GourmetCITY, an upmarket store. It will offer a plentiful array of fresh produce and delicatessen style products in an environment that competes on the world stage, featuring white carrara marble flooring and black louvered ceilings. The second format is ExpressCITY, a convenience/neighbourhood store format of around 280 sq m. In addition, there are plans to open "at least" 15 new HyperCITY stores across India in the coming 18 months.
June - HyperCITY is to launch upmarket food stores under the GourmetCity fascia later this year with plans for a 50 store chain. Around 40% of products will come from Waitrose. Separately, HyperCITY intends to launch a convenience chain called ExpressCITY, for which it believes there is scope for up to 400 stores.
2008
May - HyperCITY CEO Andrew Levermore said: "The experiment with the convenience format has been put on the back burner for now. It is clear that the HyperCITY format delivers greater returns than the small format in the retail space, so we have decided to expand HyperCITY. We may revisit the small convenience format (ExpressCITY) experiment at some point in the future."
May - According to reports in the Indian press, K Raheja-owned HyperCITY Retail has abandoned plans announced last year to launch a neighbourhood store format under the ExpressCITY banner. The emphasis will shift instead to big box formats and multi-channel retailing. HyperCITY CEO Andrew Levermore said "The experiment with the neighbourhood format has been put on the back burner for now. It is clear that the HyperCity format delivers greater returns than the small formats in the retail space, so we have decided to expand HyperCity. We may revisit the small convenience format experiment at some point in the future." Sources said huge rentals charged by property developers made the low-margin businesses unviable.
February - According to reports in the Indian press, K Raheja Corp. is planning to invest INR1,500 crore (USD380 million) for setting up 68 hypermarkets and 250 convenience (Expresscity) stores across the country in the next five years. Hypercity Chief Executive Andrew Levermore said, "We plan to have around 29 hypermarkets by 2011 and have identified around 68 locations across the country of which some will be stand-alone or an anchor store to other malls. The hypermarkets would be set up in tier-II and tier-III locations as well." The group is also planning to introduce its third retailing format in the next three months (with its main focus on serving high-end customers).
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Company Report - K Raheja Corp in India
14 April 2023
GourmetCITY (Superstores)
GourmetCITY In A Page
Total Sales Number of Stores Website
India - INR 14.1 billion India - 140 www.hypercityindia.com
GourmetCITY - INR 77.0 million GourmetCITY - 1
CAGR Senior Management Location
India - 28% Banner Director
Mr Andrew Levermore
Construction House ‘A’,
24th Road, Khar (West),
Mumbai – 400 052
GourmetCITY - 0%
Summary
GourmetCITY is an upmarket 1,000 sq m store format launched in 2008. It offers a plentiful array of fresh produce and delicatessen style products in an environment that competes on the world stage, featuring white carrara marble flooring and black louvered ceilings. There are plans for 50 stores. Around 40% of products will come from Waitrose.
The store offers a Juice Bar, Deli counter, Olive bar, Salad counter, Bakery, Tea and Coffee bars, Spices counter, Seafood & Sushi bar, fresh gourmet Meals-to-Go, hand-made chocolates, freshly baked breads, marinated meats, upscale deli goods, gifting ideas,hampers, exotic pickles and jams.
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PlanetRetail
Company Report - K Raheja Corp in India
14 April 2023
Interactive Retail Dashboard
Sales
126www.planetretail.net - Planet Retail 2010
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Company Report - K Raheja Corp in India
14 April 2023
Market Share
127www.planetretail.net - Planet Retail 2010
PlanetRetail
Company Report - K Raheja Corp in India
14 April 2023
Number of Stores
128www.planetretail.net - Planet Retail 2010
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Company Report - K Raheja Corp in India
14 April 2023
Category Trends
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Company Report - K Raheja Corp in India
14 April 2023
Management
Mr Andrew Levermore
Banner Director - CEO HyperCITY Retail
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Company Report - K Raheja Corp in India
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Ownership
Hypercity Retail (India) Pvt Ltd was launched by Inorbit Malls Private Limited, a K Raheja Corp company. Initially known as Rainbow Retail Private Limited, the name of the company was changed to Hypercity Retail (India) Pvt Ltd in March 2005. The first HyperCITY hypermarket store opened in 2006.
K Raheja Corp's subsidiary Shoppers' Stop Ltd has the option of acquiring a 51% stake in HyperCITY Retail before December 2008. From March 2007, Shoppers Stop has held a 19% in the company.
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PlanetRetail
Company Report - K Raheja Corp in India
14 April 2023
Store Concepts
GourmetCITY is an upmarket 1,000 sq m store format launched in 2008. It offers a plentiful array of fresh produce and delicatessen style products in an environment that competes on the world stage, featuring white carrara marble flooring and black louvered ceilings. There are plans for 50 stores. Around 40% of products will come from Waitrose.
The store offers a Juice Bar, Deli counter, Olive bar, Salad counter, Bakery, Tea and Coffee bars, Spices counter, Seafood & Sushi bar, fresh gourmet Meals-to-Go, hand-made chocolates, freshly baked breads, marinated meats, upscale deli goods, gifting ideas,hampers, exotic pickles and jams.
Private Labels
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Company Report - K Raheja Corp in India
14 April 2023
Store Data
Number of Outlets
2008
Number Of Owned Outlets 1
Number Of Franchised Outlets
Number Of Independant Outlets
Number Of Outlets 1
Number Of Checkouts 20
Size of Outlets
2008
Average Sales Area SQFT 10,000
Total Sales Area SQFT 10,000
Category Sales (2008)
2008 (INR)
Grocery 51,448,126
Non-Grocery 23,468,106
Other 2,078,868
EEO Sales (2008)
2008 (INR)
EEO Banner Sales 8,022,889
Non-EEO Banner Sales 68,972,210
Grand Total 76,995,100
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Company Report - K Raheja Corp in India
14 April 2023
Market Shares (2008)
MGD Grocery sales, market share % Banner Sales (INR)
0.00 76,995,100
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Company Report - K Raheja Corp in India
14 April 2023
Category Sales (2008)
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Company Report - K Raheja Corp in India
14 April 2023
Category Sales (2008)
Product Category Type Product Category Banner Sales (INR)
Grocery Alcoholic drinks 2,332,952
Grocery Ambient 19,063,987
Grocery Chilled 9,816,875
Grocery Frozen 3,934,450
Grocery Fruit & vegetables 6,814,066
Grocery Household care 2,425,346
Grocery Non-alcoholic drinks 4,627,405
Grocery Pet care 1,570,700
Grocery Tobacco 862,345
Non-Grocery Automotive 377,276
Non-Grocery Clothing & footwear 1,370,513
Non-Grocery DIY & gardening 76,995
Non-Grocery Electricals (brown goods) 2,664,030
Non-Grocery Electricals (white goods) 754,552
Non-Grocery Entertainment 1,493,705
Non-Grocery Furniture & floorcoverings 177,089
Non-Grocery Health & beauty care 5,990,219
Non-Grocery HoReCa food 315,680
Non-Grocery HoReCa non-alcoholic drinks 277,182
Non-Grocery Household textiles 508,168
Non-Grocery Office 2,741,026
Non-Grocery Pharmacy 4,581,208
Non-Grocery Sports & leisure 800,749
Non-Grocery Stationery 369,576
Non-Grocery Toys 947,040
Non-Grocery Watches & jewellery 23,099
Other Other 923,941
Other Other non-grocery 1,154,926
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Company Report - K Raheja Corp in India
14 April 2023
Developments
2007
December - HyperCity Retail is planning to set up eight food hall retailing stores under the brand name 'Gourmet City' in 2008 occupying an average of 929 square metres each. HyperCity Retail (India) business head - food & grocery Ashutosh Chakradeo said, "Our food hall Gourmet City stores will not sell raw food like packaged pulses. Through a distribution arrangement with UK-based Waitrose, we will sell Waitrose branded ready to eat food through Gourmet City." The company is also planning to set up 55 HyperCity hypermarkets (occupying an average of 9,294 square metres each) across four regions of the country in the next five years. "We aim to achieve a land bank of 511,152 square metres in the next five years. We are currently talking to logistics service providers such as Agility, apart from Mahindra & Mahindra, to source logistics services to handle our additional feeder distributors and warehousing facilities operations, across India," Chakradeo added. HyperCity Retail is also planning to launch colour televisions (CTVs), DVD players, and home theatre systems under its private label consumer durables brand Technix. Living Liquids HyperCity Retail’s concession partners, is planning to bring in 40 international wine and beer brands within the HyperCity stores. For the upcoming Christmas season, the company is offering internationally branded Lindt, Whittakers, Butlers chocolates, Duchy Originals cakes and biscuits, Amaretti Viginia cakes, Epicure confectionaries Mathew Walkers cakes and puddings and Bon Maman tarts, apart from Waitrose branded cakes, puddings, confectionary, and chocolates. "This Christmas, we hope footfalls will increase by over 40% compared to the previous Christmas," Chakradeo added.
July - K Raheja confirms it will launch two new store formats. The first is GourmetCITY, an upmarket store. It will offer a plentiful array of fresh produce and delicatessen style products in an environment that competes on the world stage, featuring white carrara marble flooring and black louvered ceilings. The second format is ExpressCITY, a convenience/neighbourhood store format of around 280 sq m. In addition, there are plans to open "at least" 15 new HyperCITY stores across India in the coming 18 months.
June - HyperCITY is to launch upmarket food stores under the GourmetCity fascia later this year with plans for a 50 store chain. Around 40% of products will come from Waitrose. Separately, HyperCITY intends to launch a convenience chain called ExpressCITY, for which it believes there is scope for up to 400 stores.
2009
October - K Raheja owned HyperCITY Retail has re-strategised its business plans and will continue to focus on its hypermarket format. The company plans to set up four HyperCITY stores in the coming year. HyperCITY Vice Chairman BS Nagesh said: "We have experienced tremendous success with the HyperCITY format and have decided to consolidate our GourmetCITY business. It was a futuristic store concept created as part of our innovation and expansion plans but the return on investment does not make this business feasible. We are confident of the continued support from our partners, employees and stakeholders and belief of what works best in a mutually rewarding environment." The existing GourmetCITY located at In Orbit Mall, Malad, has not been meeting business plans. In view of this, the company has decided to exit from the GourmetCITY format.
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PlanetRetail
Company Report - K Raheja Corp in India
14 April 2023
HomeStop (Home furnishing stores)
HomeStop In A Page
Total Sales Number of Stores Website
India - INR 24.6 billion India - 179 www.shoppersstop.com
HomeStop - INR 221.3 million HomeStop - 4
CAGR Senior Management Location
India - 29% Banner Director
Mr C Nair
Eureka Towers
9th Floor, C - Wing, Plot No 504,
Link Road, Malad (W)
Mumbai – 400 064
HomeStop - 25%
Summary
New furniture concept launched in December 2005 in order to benefit from rising disposable incomes and home ownership in India.
Alongside furniture, the stores offer soft furnishings, kitchen appliances, crockery, lighting accessories and heath equipment as well as access to interior designers and credit facilities.
Please note: To avoid double-counting, store operations data relates to stand-alone stores only.
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Company Report - K Raheja Corp in India
14 April 2023
Interactive Retail Dashboard
Sales
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Company Report - K Raheja Corp in India
14 April 2023
Market Share
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Company Report - K Raheja Corp in India
14 April 2023
Number of Stores
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Company Report - K Raheja Corp in India
14 April 2023
Category Trends
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PlanetRetail
Company Report - K Raheja Corp in India
14 April 2023
Management
Mr C Nair
Banner Director - Home Division, Shoppers' Stop Ltd
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Company Report - K Raheja Corp in India
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Ownership
Operated by Shoppers' Stop Ltd.
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Company Report - K Raheja Corp in India
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Store Concepts
New furniture concept launched in December 2005 in order to benefit from rising disposable incomes and home ownership in India.
Alongside furniture, the stores offer soft furnishings, kitchen appliances, crockery, lighting accessories and heath equipment as well as access to interior designers and credit facilities.
Please note: To avoid double-counting, store operations data relates to stand-alone stores only.
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Company Report - K Raheja Corp in India
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Store Data
Number of Outlets
2010
Number Of Owned Outlets 4
Number Of Franchised Outlets
Number Of Independant Outlets
Number Of Outlets 4
Number Of Checkouts 40
Size of Outlets
2010
Average Sales Area SQFT 32,292
Total Sales Area SQFT 129,167
Category Sales (2010)
2010 (INR)
Non-Grocery 211,739,840
Other 9,560,160
EEO Sales (2010)
2010 (INR)
EEO Banner Sales 6,904,560
Non-EEO Banner Sales 214,395,440
Grand Total 221,300,000
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Market Shares (2010)
Banner Sales (INR)
221,300,000
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Category Sales (2010)
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Company Report - K Raheja Corp in India
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Category Sales (2010)
Product Category Type Product Category Banner Sales (INR)
Non-Grocery Electricals (white goods) 6,904,560
Non-Grocery Furniture & floorcoverings 193,770,280
Non-Grocery Household textiles 11,065,000
Other Other 3,164,590
Other Other non-grocery 4,094,050
Other Services 2,301,520
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Developments
2005
December - First trial store opens in Bangalore. The store is 2,900 sq m in size.
2008
June - Shopper's Stop has launched Stop & Go (airport retailing) at the Bangalore International Airport in India. With the addition of this store, the company now operates 129 stores across different formats across the country. The group operates 24 Shopper's Stop, three Home Stop, two Arcelia, three Stop & Go, four MAC, 25 Cafe Brio/Desi Cafe (including two food courts), one Clinique, 48 Crossword (including 11 shop-in-shops and 37 standalone stores) 19 Mothercare (ten shop-in-shops and nine standalones). Shopper's Stop occupies an area of 139,405 square metres.
March - According to reports in the Indian press, Shoppers' Stop is planning to add 250,929 square metres to its existing 120,818 square metres over the next three to four years. Shoppers' Stop customer care associate and chief executive officer Govind Shrikhande said, "We are looking at an investment of more than INR250 crore (USD63 million) over almost four years." The company has earmarked INR50 crore (USD13 million) for increasing its stake in HyperCity from the current 19% to 50% by December this year. The company is planning to set up 24 stores across 24 cities within the next four years. The company has also earmarked INR150 crore (USD40 million) to expand Mothercare, Crossword Book Store and HomeStop stores and aims at investing INR25 crore (USD6 million) in its airport retailing venture with Nuance Group AG. "The investment will be funded through the rights issue and internal accrual," he said. According to company sources, "The rights issue is likely to be filed within next three to four weeks and the subscription for that is likely to get over last week of May, this year. The rights issue will consist of INR300 crore (USD76 million) equity component and around INR200 crore (USD51 million) of debt. Shoppers' Stop is also looking at increasing the size of its new stores from the existing 6,041 to 7,900 square metres, which will give it space for another 50-80 brands."
February - According to reports in the Indian press, Shoppers' Stop Managing Director B S Nagesh denied media reports about the company being sold off. As per local papers, the parent company (K Raheja) is looking to sell Shopper's Stop, as well as its other retail formats Home Stop, Crossword, Stop & Go and Brio. Nagesh said, "These are just baseless market rumours. There is no credibility whatsoever. Shopper's Stop is not for sale." Reports quoted unnamed sources saying that Reliance Retail and Aditya Birla Retail are taking a serious look at the sales talk. At present, Shopper's Stop operates 23 stores in 12 cities across the country.
2011
April - K Raheja Shoppers' Stop has reported its financial results for the quarter. Shoppers' Stop and its retail invested companies operate the following number of stores/doors as on 31 March 2011.
Shoppers' Stop – 38 stores with a presence in 17 cities
HomeStop Stores (Home Décor) – 4 stores with a presence in 3 cities
Mothercare (exclusive franchise agreement for departmental stores with Mothercare Plc UK) - 29 stores of Mothercare (including 7 standalone stores) with a presence in 11 cities. Please note: For more information on Mothercare please see Mothercare in India.
Crossword - 69 stores,
Estee Lauder - 3 standalone stores M.A.C (retail agreement with Estee Lauder) - 18 stores in Mumbai, Bangalore, Delhi, Amritsar, Chennai, Hyderabad, Pune and Kolkata, Clinique - 8 stores (including 2 standalone)
Mixed Retailing: HyperCity – 9 stores, one store each in Amritsar, Bhopal, Jaipur, Ludhiana, Navi Mumbai, Hyderabad and Bengaluru and 2 in Mumbai, spread over an area of 984 thousand square feet (91.4 thousand square metres)
Discovery Club continues to grow and represents 44% of sales in Q4FY11. Total members are at 163 thousand.
LTL sales in Q4 was up by 11% and for FY11 was up 19%. Total Sales grew by 50% for Q4 and 84% for the year.
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Other Initiatives: Airport Retailing – 1 store in Hyderabad domestic airport and 2 stores in Bangalore domestic airport. 4 duty free stores are run by the JV Company in the international airport at Bengaluru.
TimeZone Entertainment – 12 doors.
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Company Report - K Raheja Corp in India
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HyperCity (Hypermarkets)
HyperCity In A Page
Total Sales Number of Stores Website
India - INR 24.6 billion India - 179 www.hypercityindia.com
HyperCity - INR 6.0 billion HyperCity - 9
CAGR Senior Management Location
India - 29% Operations Director
Mr John Wilcox
Construction House ‘A’,
24th Road, Khar (West),
Mumbai – 400 052
HyperCity - 0%
Summary
Two years in the planning, the first HyperCITY hypermarket was launched in May 2006. The 11,150 square metre store at Malad was one of the first modern hypermarkets in the country.
The store is certainly impressive and could provide a benchmark in standards for further hypermarkets in India. There are 30 checkouts, wide aisles, and no checking of bags or restrictions on what is carried in the store (as often happens in most modern Indian stores) in order to provide an attractive, less intimidating atmosphere to shop.
The product range is comprehensive, taking in groceries to home wares, home entertainment, household appliances, furniture, sports, toys and apparel. Special departments within the store include an area for imported foods, in-store restaurants (including cafe), a 24 hour pharmacy, a demonstration area, and a gaming zone. Services include ATMs, consumer finance, free gift wrapping, price check points and changing rooms. There is also an exchange and refund policy and home delivery for bulk purchases.
HyperCITY offers approximately 36,000 SKUs.
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Interactive Retail Dashboard
Sales
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Market Share
157www.planetretail.net - Planet Retail 2010
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Number of Stores
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Category Trends
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Management
Mr John Wilcox
Operations Director -
Mr Andrew Levermore
Banner Director - CEO HyperCITY Retail
Mr Yakeen Gazi
IT Director -
Mr Esha Anand
Marketing Director -
Mr Ashutosh Chakradeo
Merchandising Director - Food & Grocery
Mr Dharmendar Jain
Finance Director - & Supply Chain
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Ownership
Hypercity Retail (India) Ltd was launched by Inorbit Malls Private Limited, a K Raheja Corp company. Initially known as Rainbow Retail Private Limited, the name of the company was changed to Hypercity Retail (India) Pvt Ltd in March 2005. The first HyperCITY hypermarket opened in 2006.
K Raheja Corp's subsidiary Shoppers' Stop Ltd has the option of acquiring a 51% stake in HyperCITY Retail before December 2008. From March 2007, Shoppers Stop has held a 19% in the company.
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PlanetRetail
Company Report - K Raheja Corp in India
14 April 2023
Store Concepts
Two years in the planning, the first HyperCITY hypermarket was launched in May 2006. The 11,150 square metre store at Malad was one of the first modern hypermarkets in the country.
The store is certainly impressive and could provide a benchmark in standards for further hypermarkets in India. There are 30 checkouts, wide aisles, and no checking of bags or restrictions on what is carried in the store (as often happens in most modern Indian stores) in order to provide an attractive, less intimidating atmosphere to shop.
The product range is comprehensive, taking in groceries to home wares, home entertainment, household appliances, furniture, sports, toys and apparel. Special departments within the store include an area for imported foods, in-store restaurants (including cafe), a 24 hour pharmacy, a demonstration area, and a gaming zone. Services include ATMs, consumer finance, free gift wrapping, price check points and changing rooms. There is also an exchange and refund policy and home delivery for bulk purchases.
HyperCITY offers approximately 36,000 SKUs.
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Private Label Strategy
Private Labels
In the HyperCITY stores, CEO Andrew Levermore told Planet Retail in early 2007 that private labels account for 30% of store sales.
In addition to its own brands, HyperCITY stores also have the exclusive rights for the Waitrose premium grocery brand in India (supplied by the UK grocer). HyperCITY announced in 2007 that it will extend the Waitrose line of food from ambient to chilled lines.
Private Labels: At A Glace
Brand Position Product range
City Life Standard Clothing
City Sense Standard Clothing
City Style Standard Clothing
Fresh Basket Standard Fresh, Fruit & Vegetables
Hypercity Economy Food
Lauren Christopher Standard Other non-food
River Inc Standard Clothing
Supremia Premium Food
Tosca Standard Other non-food
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Store Data
Number of Outlets
2010
Number Of Owned Outlets 9
Number Of Franchised Outlets
Number Of Independant Outlets
Number Of Outlets 9
Number Of Checkouts 270
Size of Outlets
2010
Average Sales Area SQFT 120,018
Total Sales Area SQFT 1,080,158
Category Sales (2010)
2010 (INR)
Grocery 3,059,999,745
Non-Grocery 185,999,985
Other 2,753,999,770
EEO Sales (2010)
2010 (INR)
EEO Banner Sales 185,999,985
Non-EEO Banner Sales 5,813,999,515
Grand Total 5,999,999,500
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Market Shares (2010)
MGD Grocery sales, market share % Banner Sales (INR)
0.00 5,999,999,500
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Category Sales (2010)
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Category Sales (2010)
Product Category Type Product Category Banner Sales (INR)
Grocery Alcoholic drinks 179,999,985
Grocery Ambient 1,253,999,895
Grocery Chilled 425,999,964
Grocery Frozen 233,999,980
Grocery Fruit & vegetables 305,999,974
Grocery Household care 185,999,985
Grocery Non-alcoholic drinks 293,999,975
Grocery Pet care 113,999,990
Grocery Tobacco 65,999,995
Non-Grocery Entertainment 185,999,985
Other Other 2,753,999,770
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Developments
2006
July - Hypercity launches IScan, which it claims is the first customer self scan service in India. The handheld system allows customers to scan their items as they shop around the store, therefore saving time at the checkout, allowing them to check prices and giving them greater control over their shopping basket. Shoppers need to be registered before they use the system for the first time while an assisant is also on hand in the early stages. Speaking on the launch of IScan, Hypercity's managing director Andrew Levemore said, “As a part of our on going endeavour to offer innovative and higher standards of service we are truly delighted to introduce IScan, which will give our customers the power to save time while shopping and helps us increase loyalty from customers who appreciate speedy service”
May - First 11,150 sq m Hypercity store opens in Malad, Mumbai.
2007
December - HyperCity Retail is planning to set up eight food hall retailing stores under the brand name 'Gourmet City' in 2008 occupying an average of 929 square metres each. HyperCity Retail (India) business head - food & grocery Ashutosh Chakradeo said, "Our food hall Gourmet City stores will not sell raw food like packaged pulses. Through a distribution arrangement with UK-based Waitrose, we will sell Waitrose branded ready to eat food through Gourmet City." The company is also planning to set up 55 HyperCity hypermarkets (occupying an average of 9,294 square metres each) across four regions of the country in the next five years. "We aim to achieve a land bank of 511,152 square metres in the next five years. We are currently talking to logistics service providers such as Agility, apart from Mahindra & Mahindra, to source logistics services to handle our additional feeder distributors and warehousing facilities operations, across India," Chakradeo added. HyperCity Retail is also planning to launch colour televisions (CTVs), DVD players, and home theatre systems under its private label consumer durables brand Technix. Living Liquids HyperCity Retail’s concession partners, is planning to bring in 40 international wine and beer brands within the HyperCity stores. For the upcoming Christmas season, the company is offering internationally branded Lindt, Whittakers, Butlers chocolates, Duchy Originals cakes and biscuits, Amaretti Viginia cakes, Epicure confectionaries Mathew Walkers cakes and puddings and Bon Maman tarts, apart from Waitrose branded cakes, puddings, confectionary, and chocolates. "This Christmas, we hope footfalls will increase by over 40% compared to the previous Christmas," Chakradeo added.
May - According to local reports, Hypercity Retail (India) Ltd is looking to open 300 neighbourhood stores by 2010 with the first batch of stores to be opened by the end of this year. The stores will be called Express City and will stock fresh produce. Each store will be about 300-450 sq metres.
March - At the World Retail Congress, HyperCITY's CEO Andrew Levermore has revealed that the hypermarket will extend the Waitrose line from ambient to chilled lines. HyperCITY stores also have the exclusive rights for the Waitrose premium grocery brand in India. Mr Levermore also announced that private labels account for 30% of HyperCITY's sales.
March - Shoppers Stop Ltd is to exercise its right to buy a 19% stake in HyperCITY Retail (India) Pvt Ltd. Shoppers Stop has the option to acquire a 51% stake in the hypermarket operator.
2008
December - K Raheja Corp promoted HyperCITY has announced the launch of a hypermarket occupying 3,717 square metres of retail space in Jaipur. HyperCITY CEO Andrew Levermore said, "We are happy to launch HyperCITY at Triton Mall in Jaipur. With HyperCITY, we aim to provide a rich shopping experience in a large, modern and exciting environment, where customers will have a wide assortment to choose from at great value." Following earlier reports, the store offers Raleigh Bicycles, Ebano, Avorio, Waitrose and Maxit products.
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November - As per reports in the local press, K Raheja Corp promoted HyperCITY has announced joining hands with National Geographic to offer an extensive range of educational toys within the stores. According to a company press release, this strategic tie-up will last over a period of one year. The range targets the children over eight years of age and the company believes that these toys will motivated children to learn as they play. The toys are to be priced between INR599-5,999 (USD13-132) offering a wide variety of products including electronic lab telescope and microscope, nature exploring kit, dinosaur toys, crystal growing kit, human eye and human heart kit, volcano and earthquake set, planetarium kit and interactive globes.
October - K Raheja Group-promoted HyperCITY launched its second store occupying 7,435 square metres at Inorbit Mall in Vashi, Mumbai. The newly launched store will stock traditional vegetables, fruits, home appliances, electronics, sports goods, toys and furniture merchandise. In addition, it also features home-entertainment, hi-tech and appliances section. Other products include furniture, sports equipment, fashion clothing, accessories and footwear. HyperCITY CEO Andrew Levermore said, "With Hypercity, we aim to provide the consumers of Navi Mumbai, a distinctive and dominant assortment of products at great value. We are geared up to launch more stores in Hyderabad, Jaipur and Bangalore."
June - K Raheja Group-promoted Hypercity anticipates 15% of its turnover to come from the multi-channel sales route of catalogue retailing and online sales, Hypercity Argos business head Rajeev Nair said. "As we concentrate on the big-box format of retail, we will look to increase our sales from the multi-channel routes of catalogue retailing as well as online retailing of our products," he added. The company is planning to pitch advertising strategy through print media and radio. The cost of advertising will be greater than that of physical storage, he said. The company has tied up with JWT (advertising agency) for educating consumers on the benefits of catalogue and online shopping. "Since the concept of catalogue retailing is new here, and with 5,000 options in products to choose from online, we will need to educate the customers about the benefits of ordering from home," he added.
June - K Raheja's HyperCITY has launched its back2school collection of paper and stationery products including pencils, erasers, sharpeners and packaged sets (glitters and glue-sticks). The range offers a branded holiday-work and school-work supplies from Faber Castel, Crayola, Camlin, ITC, Apsara, Pidilite and Maped. For the younger children, the collection offers notebooks, pens, pencils and packaged sets from Disney, Winne the Pooh and others. While for the older children, packaged sets come with princess and power ranger's graphic, cars and other tech series.
May - JDA Software has announced that HyperCITY has realised a 30% increase in food sales, a 2% decrease in stock levels and enhanced customer service with the implementation and deployment of JDA Software's Advanced Store Replenishment by E3. Shoppers' Stop group chief technology officer Arun O Gupta said, "Investing in supply and demand chain technology like E3 from JDA Software will help support our expansion and is the key to our growth and profitability. Effectively managing our inventory is an absolute must and is one of our top focus areas to give our customers an outstanding shopping experience by providing the products they demand on the shelf at all times."
May - According to reports in the Indian press, K Raheja-owned HyperCITY Retail has abandoned plans announced last year to launch a neighbourhood store format under the ExpressCITY banner. The emphasis will shift instead to big box formats and multi-channel retailing. HyperCITY CEO Andrew Levermore said "The experiment with the neighbourhood format has been put on the back burner for now. It is clear that the HyperCity format delivers greater returns than the small formats in the retail space, so we have decided to expand HyperCity. We may revisit the small convenience format experiment at some point in the future." Sources said huge rentals charged by property developers made the low-margin businesses unviable.
February - According to reports in the Indian press, K Raheja Corp. is planning to invest INR1,500 crore (USD380 million) for setting up 68 hypermarkets and 250 convenience (Expresscity) stores across the country in the next five years. Hypercity Chief Executive Andrew Levermore said, "We plan to have around 29 hypermarkets by 2011 and have identified around 68 locations across the country of which some will be stand-alone or an anchor store to other malls. The hypermarkets would be set up in tier-II and tier-III locations as well." The group is also planning to introduce its third retailing format in the next three months (with its main focus on serving high-end customers).
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February - According to local reports, Shoppers' Stop plans INR500 crore (USD127 million) rights issue to fund its expansion. The company aims at occupying 278 thousand square metres retail space by setting up 20 Shoppers' Stop stores and 13 Hypercity outlets in the next two years. Shoppers Stop Managing Director B S Nagesh said, "It will be one of the biggest expansions for the company with a fund requirement of INR450-600 crore (USD114-152 million). The board has approved a rights issue of up to INR500 crore and plans to raise the remaining amount through debt." According to a company source, the company is expected to file papers for the rights issue with the market regulator in a couple of weeks.
2009
October - K Raheja owned HyperCITY Retail has re-strategised its business plans and will continue to focus on its hypermarket format. The company plans to set up four HyperCITY stores in the coming year. HyperCITY Vice Chairman BS Nagesh said: "We have experienced tremendous success with the HyperCITY format and have decided to consolidate our GourmetCITY business. It was a futuristic store concept created as part of our innovation and expansion plans but the return on investment does not make this business feasible. We are confident of the continued support from our partners, employees and stakeholders and belief of what works best in a mutually rewarding environment." The existing GourmetCITY located at In Orbit Mall, Malad, has not been meeting business plans. In view of this, the company has decided to exit from the GourmetCITY format.
August - K Raheja owned Hypercity Retail is planning to set up ten stores by 2011, each with an investment of about INR30 crore (USD6.2 million). Each store would be spread over 9,293 square metres, said Hypercity Vice Chairman BS Nagesh. Of the ten planned, one each would come up at Amritsar, Mumbai and Bangalore amongst many other cities. The store located in Hyderabad will offer 40,000 products including fresh produce, grocery, home entertainment, technical appliances, furniture, sports, toys, fashion accessories and footwear sourced from local and global markets. In addition, the company expects to break even after the launch of its seventh store in Bangalore. "The company is also in talks for setting up ATMs, laundry services, pharmacy, bakery and other services at the mall," Nagesh added.
May - HyperCity Retail plans to open at least three new HyperCity stores in the financial year 2009-2010. The stores are expected to be spread across7,435-9,294 square metres of retail space, bigger than the recent one opened in Jaipur. HyperCity Retail Head Food & Grocery said: "Although we are planning to open these new stores in the current fiscal year but the locations of the stores have not yet been finalised. We are in the process of discussion with the developers." As of now the company operates three HyperCity stores.
May - Local reports suggest that HyperCity plans to open at least three new HyperCity stores in the financial year 2009-2010. However, the company stated that locations for the stores have not been finalised. The planned stores will range from 7,500 to 9,500 sq m in size.
January - K Raheja owned HyperCITY has planned to offer around 50% reduction in multiple product categories across its stores. As per a company release, the company is set to launch a limited period discount offer called HyperCITY - great discovery sale across all HyperCity and HyperCity Argos stores in Malad, Thane and Vashi. The products on offer include furniture, homeware, sports, toys, fashion, jewellery, electronics and watches. The sale has been anchored around the brand promise - there is more to discover. The company has also planned to offer up to 70% discount on select furniture and home products, the release stated.
2010
November - Hypercity has been celebrating Diwali with a series of complimentary instore workshops for customers. In line with its ‘customer is priority’ philosophy the group ran grooming and make-up demonstrations at its store in Hyderabad.
November - India-based Hypercity, a subsidiary of Shoppers Stop, is to grow its retail space by 35-40% over the next five years and will add six more stores in the next nine months. CEO Mark Ashman said that the chain will target
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dominating cities where it has an established modern retail presence and will also look to enter new cities. Hypercity’s plan includes opening stores of 50,000 square foot in Mumbai and adding two stores in Bangalore and one in Hyderabad. Ashman said: “We are close to saturating Mumbai, Hyderabad and Bangalore and Delhi and Chennai are also on my radar.” The company expects to break even by 2013 through improving its private label mix and doubling revenue from clothing to increase gross margins.
October - Hypercity Retail has opened a new store at Bhopal, its first in the state of Madhya Pradesh, and says it expects to invest INR250 crore (USD53.53 million) on further store openings by March 2011. Head of Buying, Merchandising and Supply Chain, Ashutosh Chakradeo, said that the group was hoping to establish another Hypercity store at Indore and would open four more stores at Bangalore, Ahmedabad, Pune and Ludhiana. He revealed that the group has set a target of INR1,000 crore (USD214.14 million) turnover for its Hypercity operations in 2011. The new store at Bhopal brings the total number of Hypercity stores in the country to eight.
March - K Raheja owned HyperCITY is planning to open its second hypermarket in south of India taking the total store count up to seven across the country. The hypermarket will be spread across 13,940 square metres of retail space offering more than 44,000 products across various categories including food and grocery, electronics, apparel, home and furniture, sports gear and fitness equipments. HyperCITY Retail Vice Chairman BS Nagesh said: "We are very excited and are looking forward to offering our services in the garden city. The city of Bengaluru has the relevant characteristics of a rapidly emerging market, a cosmopolitan environment, a broad base of customers with a high propensity to purchase and above all, fast growing organised retail. All these features have motivated us to open HyperCity in the city. We feel the city can have three more outlets. Within the next 18-36 months, we plan to open more such stores for different catchment areas within the city."
March - K Raheja owned HyperCITY expects to close the year with revenue of around INR350 crore (USD75 million). The company reportedly invested INR400 crore (USD85 million) and aims at achieving a break even by March 2011. HyperCITY Retail Vice Chairman BS Nagesh said: "The hypermarket chain would achieve a company level break even in FY 2012-13." As of now the company operates six stores across the country and is all set to open the seventh in Bangalore next week. In the next two-three quarters, it plans to add another 500 thousand square feet of retail space across three cities. Nagesh continued to say, "The company plans to expand its footprint in the Southern and Western regions and certain cities in Punjab. Bangalore can take three more stores, which would happen in 18-36 months." Shoppers' Stop, which has a 19% stake in HyperCITY, has the option of increasing the stake to 51% in June this year. The company plans to raise funds for this through a QIP, about INR250-300 crore (USD53-75 million). "We have already issued warrants to the promoters in December 2009," he added.
March - Hypercity Retail has launched a hypermarket occupying 100,000 square feet at Alpha Mall in Amritsar, Punjab. HyperCITY Retail Vice Chairman BS Nagesh said: "We feel truly blessed to launch HyperCITY in Amritsar and offer the finest hypermarket experience in India. This is our first store in Punjab. We are confident that HyperCITY will resonate with the customers." The store will offer over 45,000 branded products in categories including fresh produce, grocery, home care products, consumer electronics and home appliances, homeware, furniture, lifestyle products and clothing and footwear. In addition, the store will also offer a wide selection of breads, gourmet meats, seafood and brands like Waitrose, Raleigh, Fresh Basket (food), Ebano and Avorio (homeware), Maxit (sports), Technix (appliances), City and RiverInc (fashion). At present, the company operates six HyperCITY hypermarkets in India covering 600,000 square feet of retail space.
January - K Raheja owned HyperCITY announced the launch of its fifth store occupying 46,468 square metres located at Thane in Maharashtra. The store sources from both local and global markets offering a wide variety of products including fresh produce, food & grocery, consumer electronics and footwear among many others. The outlet will also be providing free pick and drop bus services to customers. In addition, HyperCity has an exclusive supply agreement with UK based John Lewis owned Waitrose and Raleigh Cycles for offering their products within the HyperCITY stores. As of now the company operates outlets present in Malad, Vashi, Jaipur and Hyderabad.
2011
June - Shoppers' Stop plans to open 24 stores by FY14. Shoppers' Stop Group Chief Financial Officer CB Navalkar said: "We plan to open 24 new stores in the next three years. To start with, we would be opening eight-nine Shoppers Stop
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stores in the current fiscal." As of now, the company has 38 stores across the country, with a total retail space of about 2.3 million square feet (214 thousand square metres). "The retail industry is growing by around 30-35% every year. We estimate that by FY14, we will have 62 stores operational with a total retail space of 3.6 million square feet (335 thousand square metres). Apart from expanding in metros, we will also enter Tier-II cities," Navalkar added. Apart from the Shoppers Stop departmental stores, the company has five specialty retail formats like Home Stop (home furnishing), Mothercare (baby care), Crosswords (books & music), Estee Lauder (cosmetics) and Mac (cosmetics). In addition, the company is also present in the hypermarket space at 9 locations across the country through its 51% subsidiary - Hypercity (food, grocery and general merchandise). "We have already opened one Hypercity store in this fiscal year and expect to open another three by the end of FY12. Similarly, in the home furnishing format, we have planned to open four stores by the end of March 2012," Navalkar said. He continued to say, "We have already raised funds last year through a QIP issue. Apart from this, the cash generation in the company last year was around INR140 crore (USD31 million). If we have the same this year, it will be more than adequate to cover the expansion plan we have for all the formats."
May - K Raheja Group-promoted hypermarket chain HyperCity is set to expand its footprint in India. HyperCity will launch its 76,000 square feet (7,063 square metres) store in MARG Junction Mall, Chennai. HyperCity Retail CEO Mark Ashman said: "HyperCity is pleased to join hands with CMD-MARG, for the launch of HyperCity. This significant development marks HyperCity's foray into Chennai, with the commitment to provide consumers an authentic hypermarket experience. The investment for a new store would be around INR8-10 crore (USD1.7-2.2 million), depending on store size. The approximate investment plan for the ongoing fiscal on the expansion would be around INR40-50 crore (USD8.8-11 million)." HyperCity has plans to reach a target of 35 stores by March 2015.
May - Hypercity expects to break even by financial year 2012-13 on the strength of its expansion plan as well as its decision to focus on the higher-margin apparel and furniture verticals. Hypercity CEO Mark Ashman said: "The company is confident of breaking even at store level this financial year and at the company operational level by next fiscal. For the year ended March 2011, the company clocked revenue of INR600 crore (USD130.6 million) and we are targeting INR1,000 crore (USD218 million) within a couple of years. The company would now increasingly focus on the apparel and furniture businesses. Both these businesses have better margins than food, which at present accounts for about 55% of overall sales. Apparels contribute 7% to our revenue, which means there is a lot of scope for growth." In addition, the hypermarket chain also plans to increase the share of private labels for better margins. In the apparel segment, the share of private labels in menswear and women's ethnic wear will touch 90%, while that in kidswear will increase to 70%. Furthermore, the company is also looking to expand its presence nationally and plans to open five hypermarkets every year. "We plan to have 35-50 stores over the next five years," Ashman added. The company will concentrate mainly on the metro cities for its expansion as it is looking to establish a strong market foothold before setting up single-format outlets in other tier-II towns. Hypercity houses international brands like Waitrose and Raleigh. The store has developed a suite of exclusive brands across all categories such as Fresh Basket in foods, Ebano and Avorio in homeware, Maxit in sport goods, Technix in appliances, City and RiverIncin Fashion.
April - K Raheja Shoppers' Stop has reported its financial results for the quarter. Shoppers' Stop and its retail invested companies operate the following number of stores/doors as on 31 March 2011.
Shoppers' Stop – 38 stores with a presence in 17 cities
HomeStop Stores (Home Décor) – 4 stores with a presence in 3 cities
Mothercare (exclusive franchise agreement for departmental stores with Mothercare Plc UK) - 29 stores of Mothercare (including 7 standalone stores) with a presence in 11 cities. Please note: For more information on Mothercare please see Mothercare in India.
Crossword - 69 stores,
Estee Lauder - 3 standalone stores M.A.C (retail agreement with Estee Lauder) - 18 stores in Mumbai, Bangalore, Delhi, Amritsar, Chennai, Hyderabad, Pune and Kolkata, Clinique - 8 stores (including 2 standalone)
Mixed Retailing: HyperCity – 9 stores, one store each in Amritsar, Bhopal, Jaipur, Ludhiana, Navi Mumbai, Hyderabad and Bengaluru and 2 in Mumbai, spread over an area of 984 thousand square feet (91.4 thousand square metres)
Discovery Club continues to grow and represents 44% of sales in Q4FY11. Total members are at 163 thousand.
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LTL sales in Q4 was up by 11% and for FY11 was up 19%. Total Sales grew by 50% for Q4 and 84% for the year.
Other Initiatives: Airport Retailing – 1 store in Hyderabad domestic airport and 2 stores in Bangalore domestic airport. 4 duty free stores are run by the JV Company in the international airport at Bengaluru.
TimeZone Entertainment – 12 doors.
February - Hypercity says it will focus on expanding its private label offering this year to help boost sales and margins. Currently Hypercity is positioned as a high-end hypermarket chain with private label lines including Fresh Basket bakery items, Everyday cereals and pulses, Terzo homecare items, Ebano home essentials, Avorio lifestyle items, Maxit sports equipment, RiverInc clothing and JooJoobs infant wear. CEO Mark Ashman told Press Trust of India: “We are focusing on adding more private brands this year. This will definitely increase sales volumes and help us attain better margins. We will have more brands in apparel and consumer goods as they always fetch better margins than the food and grocery items.”Hypercity expects to break even by FY13 by adding more private brands to its portfolio and expects to have at least 17-18 stores by then in tier I and II cities across India.
January - Hypercity has said it will grow by differentiating itself on quality merchandise rather than by offering promotions and discounts, Business Standard reports. The chain expects to improve its offering with the launch of new international designs in homeware and clothing and has increased the number of Waitrose products sold in its stores by 50%, with lower prices to attract buyers. Hypercity CEO Mark Ashman (previously CEO of Marks and Spencer Reliance India), said that he wanted the chain to be distinguishable by its quality offerings and described offering discounts as a short-sighted strategy which was not ultimately sustainable. He said: “If you go to most of the hypermarkets, everybody is selling the same plastic boxes, steel utensils and so on. We want to sell different products that are not available with others.” The group is aiming to drive profitability with better margins by increasing the ratio of non-food items on sale. Although food contributes 57% of Hypercity’s revenues, it carries gross margins of 10-15% compared to 30-35% for clothing. Hypercity is also focusing on private label to boost its margins and will launch new clothing ranges in the autumn. In kidswear the group aims to boost the share of private labels from 50% to 70%. Hypercity currently has eight stores and achieved 27% same-store sales increases last year. The chain has four new stores in the pipeline for Ludhiana, Bangalore, Ahmedabad and Pune.
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HyperCITY-Argos (Variety stores (non-food))
HyperCITY-Argos In A Page
Total Sales Number of Stores Website
India - INR 15.8 billion India - 155 www.hypercityindia.com
HyperCITY-Argos - INR 162.3 million HyperCITY-Argos - 3
CAGR Senior Management Location
India - 25% Construction House ‘A’,
24th Road, Khar (West),
Mumbai – 400 052
HyperCITY-Argos - 0%
Summary
Based on the catalogue shopping format seen in the UK and Ireland, HyperCITY-Retail is seen to suit the urban areas of India where space is expensive. This has previously been a deterrent for retailers to reach out to a larger consumer base in a cost efficient manner. The stores offer 4,700 products.
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Interactive Retail Dashboard
Sales
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Market Share
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Number of Stores
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Category Trends
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Ownership
Since 2007, K Raheja has had a franchise agreement with the UK's Home Retail Group, which will see the Home Retail Group establish a store before the end of 2007 under the HyperCITY-Argos banner.
Please see Home Retail Group in the UK profile for more details.
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Store Concepts
Based on the catalogue shopping format seen in the UK and Ireland, HyperCITY-Retail is seen to suit the urban areas of India where space is expensive. This has previously been a deterrent for retailers to reach out to a larger consumer base in a cost efficient manner. The stores offer 4,700 products.
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Store Data
Number of Outlets
2009
Number Of Owned Outlets
Number Of Franchised Outlets
Number Of Independant Outlets
Number Of Outlets 3
Number Of Checkouts 18
Size of Outlets
2009
Average Sales Area SQFT 1,615
Total Sales Area SQFT 4,844
Category Sales (2009)
2009 (INR)
Grocery 3,068,191
Non-Grocery 152,776,437
Other 6,493,526
EEO Sales (2009)
2009 (INR)
EEO Banner Sales 86,656,107
Non-EEO Banner Sales 75,682,047
Grand Total 162,338,154
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Market Shares (2009)
EEO sales market share % EEO Banner Sales (INR)
0.00 86,656,107
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Category Sales (2009)
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Category Sales (2009)
Product Category Type Product Category Banner Sales (INR)
Grocery Household care 3,068,191
Non-Grocery Automotive 1,623,382
Non-Grocery Clothing & footwear 3,246,763
Non-Grocery DIY & gardening 6,055,213
Non-Grocery Electricals (brown goods) 33,279,322
Non-Grocery Electricals (white goods) 18,668,888
Non-Grocery Entertainment 3,246,763
Non-Grocery Furniture & floorcoverings 22,727,342
Non-Grocery Health & beauty care 4,870,145
Non-Grocery Household textiles 6,493,526
Non-Grocery Office 24,350,723
Non-Grocery Sports & leisure 7,629,893
Non-Grocery Stationery 7,110,411
Non-Grocery Toys 8,766,260
Non-Grocery Watches & jewellery 4,707,806
Other Other non-grocery 3,246,763
Other Services 3,246,763
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Developments
2007
December - HyperCity Retail launched its first HyperCity - Argos store in Thane, Mumbai. The retailer is planning to offer 4,700 products. HyperCity along with its group company Shoppers Stop entered into an agreement with Home Retail Group - a UK based firm. In the first stage the retailer is planning to launch about half a dozen pilot stores in Mumbai and Navi Mumbai and has plans of setting up the stores in other cities as well, said HyperCity Retail India CEO Andrew Levermore. The store offers the consumers to shop in three convenient ways including placing orders over the phone, visit the store or browse the entire range online at the company's website. "This unique format of catalogue shopping is definitely suited for metros like Mumbai, where retail space is expensive and has been a deterrent for retailers to reach out to a larger consumer base in a cost efficient manner. HyperCity Argos' integrated multi channel capability encompassing stores, home shopping and the internet, will give our consumers a new and convenient way to shop," Levermore added. Home Retail Group (India) General Manager Jeff Fagan said, "Argos is very excited about their first major international foray outside UK and Ireland. We are therefore delighted to participate in this venture which will enable us to evaluate the appeal of the Argos proposition in a key market like India.'' According to industry sources, the consumers can pick up a catalogue copy from HyperCity Argos store for INR50 and the store also offers services including home delivery, personal product finance and gift vouchers.
October - Shopper's Stop is planning to launch HyperCity Argos catalogue retailing in the forthcoming weeks. The company plans to set up catalogue retailing in Mumbai including Thane followed by suburbs of Mulund, Vashi, Airoli and then Pune. In India, HyperCity Argos is expected to have display centres, online and call and collect counters catering to customers in a particular region. HyperCity Argos is expected to match the prices to the existing single HyperCity hypermarket in Mumbai. Shoppers' Stop Customer Care Associate, MD and CEO B S Nagesh said, "It will be a pilot for the suburban Mumbai market. It requires minimum two catalogue seasons which take us one year to establish the model and then begin the rollout. I can't discuss the entire business model at this stage. All I can say is that it will be a catalogue called HyperCity Argos, which will sell merchandise sourced from all over the world across multiple categories and will be one of the most convenient ways of shopping to be ever introduced in the Indian market". The company aims at setting up the national rollout of catalogue retailing in a few years.
July - Local reports state that Shopper's Stop has decided to start catalogue retailing in the country under a franchise from Home Retail Group of the UK. Products will be delivered to homes and can be ordered over the internet as well as through the catalogue. The company will do a pilot test in the last quarter of this year.
2008
December - According to reports in Retail Week, Argos is scaling back its international expansion and has reviewed its strategy in India. The company is understood to have halted the expansion of its joint venture with HyperCity. Sources in India have suggested that K Raheja Corp the owner of HyperCity is unhappy at the performance of the joint venture. As a result of this development Marc Spence is leaving the retailer and is believed to be joining Best Buy Europe. A Home Retail Group spokeswoman said the trial in India is continuing and that it was "business as usual".
June - K Raheja Group-promoted Hypercity anticipates 15% of its turnover to come from the multi-channel sales route of catalogue retailing and online sales, Hypercity Argos business head Rajeev Nair said. "As we concentrate on the big-box format of retail, we will look to increase our sales from the multi-channel routes of catalogue retailing as well as online retailing of our products," he added. The company is planning to pitch advertising strategy through print media and radio. The cost of advertising will be greater than that of physical storage, he said. The company has tied up with JWT (advertising agency) for educating consumers on the benefits of catalogue and online shopping. "Since the concept of catalogue retailing is new here, and with 5,000 options in products to choose from online, we will need to educate the customers about the benefits of ordering from home," he added.
February - Catalogue retailing is picking up in India. Hypercity Retail India (along with Shoppers' Stop) has entered into a franchise agreement with Home Retail Group (UK) and launched its first Hypercity Argos brand in Thane - Mumbai. At present, five Hypercity Argos stores in Thane offer catalogue shopping. Hypercity Retail India CEO Andrew Levermore said, "This format is suitable for metros like Mumbai. In metros, retail space is expensive, preventing retailers from
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reaching out to a larger consumer base. Hypercity Argos' integrated multi-channel capability encompassing stores, home shopping and the Internet will give our consumers a convenient way to shop."
January - According to reports in the Indian press, catalogue retailing is getting realistic by each passing day in the country. At present, Hyper CITY Argos operates five stores in Thane and is planning to expand. Hyper CITY Retail India CEO Andrew Levermore said, "Indians have been shopping from home for decades. They are used to home deliveries of whatever they order over the phone to the neighbourhood kirana stores. This will just be on an organised scale with more variety available. Moreover, Indian consumers like to make large purchase decisions as a family and that is why catalogue retailing will be the ideal platform here."
2009
January - UK based company Home Retail Group has announced that it will discontinue trialling the Argos format in India. Following an initial two year development period, the decision has been taken mutually by Home Retail Group, Shoppers' Stop and HyperCITY. The trial had not met the planned performance levels to support the investment required in the current Indian economic climate. The existing retail operations will be wound down, at minimal cost to Home Retail Group. The company added that, at some point in the future, the Indian retail market may still present an attractive long-term growth opportunity for the Argos multi-channel model.
January - K Raheja owned HyperCITY has planned to offer around 50% reduction in multiple product categories across its stores. As per a company release, the company is set to launch a limited period discount offer called HyperCITY - great discovery sale across all HyperCity and HyperCity Argos stores in Malad, Thane and Vashi. The products on offer include furniture, homeware, sports, toys, fashion, jewellery, electronics and watches. The sale has been anchored around the brand promise - there is more to discover. The company has also planned to offer up to 70% discount on select furniture and home products, the release stated.
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Nuance Group/Airport Retailing (Duty free stores)
Nuance Group/Airport Retailing In A Page
Total Sales Number of Stores Website
India - INR 24.6 billion India - 179 www.krahejacorp.com
Nuance Group/Airport Retailing - INR 45.6 million
Nuance Group/Airport Retailing - 7
CAGR Senior Management Location
India - 29% Construction House ‘A’,
24th Road, Khar (West),
Mumbai – 400 052
Nuance Group/Airport Retailing - 0%
Summary
The joint venture will operate duty free stores, with Shoppers' Stop operating the stores and The Nuance Group will provide technical assistance. As per the agreement, Shoppers' Stop will handle retail operations at domestic terminals and the same at the International terminals will be handled by Nuance Group India.
The first stores opened in early 2007 (Q4 of FY2006) in the Domestic Terminal 1B in Mumbai, while the business has also won the contract for both duty free and duty paid stores at Bangalore International Airport, scheduled to open in April 2008.
By March 2007, there were 2 Stop & Go stores operating. In addition, there was one Crossword store (included in Crossword banner).
Please note: To avoid double-counting, store operations data relates to stand-alone stores only.
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Interactive Retail Dashboard
Sales
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Market Share
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Number of Stores
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Category Trends
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Ownership
50:50 JV with The Nuance Group AG of Switzerland.
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Store Concepts
The joint venture will operate duty free stores, with Shoppers' Stop operating the stores and The Nuance Group will provide technical assistance. As per the agreement, Shoppers' Stop will handle retail operations at domestic terminals and the same at the International terminals will be handled by Nuance Group India.
The first stores opened in early 2007 (Q4 of FY2006) in the Domestic Terminal 1B in Mumbai, while the business has also won the contract for both duty free and duty paid stores at Bangalore International Airport, scheduled to open in April 2008.
By March 2007, there were 2 Stop & Go stores operating. In addition, there was one Crossword store (included in Crossword banner).
Please note: To avoid double-counting, store operations data relates to stand-alone stores only.
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Store Data
Number of Outlets
2010
Number Of Owned Outlets
Number Of Franchised Outlets
Number Of Independant Outlets
Number Of Outlets 7
Number Of Checkouts 14
Size of Outlets
2010
Average Sales Area SQFT 1,507
Total Sales Area SQFT 10,549
Category Sales (2010)
2010 (INR)
Grocery 20,408,595
Non-Grocery 20,176,265
Other 4,970,040
EEO Sales (2010)
2010 (INR)
EEO Banner Sales 4,960,929
Non-EEO Banner Sales 40,593,971
Grand Total 45,554,900
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Market Shares (2010)
MGD Grocery sales, market share % Banner Sales (INR)
0.00 45,554,900
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Category Sales (2010)
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Category Sales (2010)
Product Category Type Product Category Banner Sales (INR)
Grocery Alcoholic drinks 8,063,217
Grocery Ambient 5,284,368
Grocery Non-alcoholic drinks 273,329
Grocery Tobacco 6,787,680
Non-Grocery Clothing & footwear 956,653
Non-Grocery Electricals (brown goods) 1,863,195
Non-Grocery Entertainment 2,141,080
Non-Grocery Health & beauty care 7,880,998
Non-Grocery Stationery 956,653
Non-Grocery Toys 3,826,612
Non-Grocery Watches & jewellery 2,551,074
Other Other 642,324
Other Other non-grocery 3,917,721
Other Services 409,994
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Developments
2008
April - According to reports in the Indian press, Shoppers' Stop has announced the launch of its second Stop & Go format store in Hyderabad International Airport. The first Stop & go store is already operational in Mumbai Airport. Stop & Go consists of a Shoppers' Stop and Desi Cafe operating out of an airport. At present the company operates 24 Shoppers' Stop, three Home Stop, two Arcelia, two Stop & Go, four MAC, 25 Brio/Desi Cafe, one Clinique, 48 Crossword (eleven of which are shop in shop formats) and 18 Mothercare (ten of which are shop in shop formats).
March - According to reports in the Indian press, Shoppers' Stop is planning to add 250,929 square metres to its existing 120,818 square metres over the next three to four years. Shoppers' Stop customer care associate and chief executive officer Govind Shrikhande said, "We are looking at an investment of more than INR250 crore (USD63 million) over almost four years." The company has earmarked INR50 crore (USD13 million) for increasing its stake in HyperCity from the current 19% to 50% by December this year. The company is planning to set up 24 stores across 24 cities within the next four years. The company has also earmarked INR150 crore (USD40 million) to expand Mothercare, Crossword Book Store and HomeStop stores and aims at investing INR25 crore (USD6 million) in its airport retailing venture with Nuance Group AG. "The investment will be funded through the rights issue and internal accrual," he said. According to company sources, "The rights issue is likely to be filed within next three to four weeks and the subscription for that is likely to get over last week of May, this year. The rights issue will consist of INR300 crore (USD76 million) equity component and around INR200 crore (USD51 million) of debt. Shoppers' Stop is also looking at increasing the size of its new stores from the existing 6,041 to 7,900 square metres, which will give it space for another 50-80 brands."
2009
August - Shoppers' Stop is planning to expand its franchise operations. The company is aiming at investing INR22 crore (USD4.5 million) and doubling the number of Mothercare outlets in the next three years. At present, the company operates nine standalone and 13 shop-in-shop Mothercare outlets. Shoppers' Stop Customer Care Associate and CEO Govind Shrikhande said: "Mothercare has been in India for the past three-and-a-half years. We are now in discussions with Mothercare on how to fast forward this business. Shoppers' Stop will be investing in this franchise business through internal accruals." As per company sources, "The retailer has decided to put a stop to new franchise arrangements. Instead, it would focus on bringing in more international brands through a retail arrangement in which Shoppers' Stop would not be the exclusive partner." Separately, Shoppers Stop has been going slow with its airport retailing operations. The company has closed down its outlets at the Mumbai airport while it continues to have shops in Bangalore and Hyderabad airports.
June - K Raheja owned Shoppers' Stop will invest about INR40 crore (USD7.6 million) in the current fiscal to roll out more stores. Shoppers' Stop Customer Care Associate and Managing Director BS Nagesh said: "We have just opened our 27th store in Hyderabad and we plan to open 3-4 stores this fiscal at an investment of INR10 crore (USD1.9 million) each. The group has also signed agreements for more outlets and hence could end the year with 30-35 stores. The expansion is being funded through internal accruals. There is definitely another two quarters of pain left. We expect a turnaround in the January-March quarter of 2010. But, we see margins improving from October-December because of the festival season." Following earlier announcements, the group closed its bookstore format, Crossword, in Chennai, New Delhi and Mumbai airports, it also shut down its airport retail venture Stop & Go in Mumbai. In January this year, the company also reported winding up Argos and Brio format. "Shoppers' Stop would focus on consolidating its operations and there will be no new joint ventures this year. The Government should allow FDI to come through because it would bring in expertise which would help the sector grow," Nagesh added.
May - "Shoppers Stop plans to open 12 more outlets with a total area of 60 thousand square metres in the next three years by taking advantage of the fall in mall rentals, reversal of service tax thereon and possible revival in the economy. The company required a capex of INR91 crore (USD17.4 million) on the store openings and INR32.50 crore (USD6.2 million) on the inventory for these 12 stores. The company was planning to fund the expansion from internal accruals, debt and possible equity infusion," a company official reported. The company plans to open four stores this fiscal in cities including the likes of Bangalore, Ahmedabad and Hyderabad, moreover four each in the next two fiscals, each store measuring around 5,111 square metres. As per sources, mall rentals have fallen 35-40% in some cities from their peak in the past couple of years. Shoppers Stop (SS) Chief Executive Govind Shrikhande said: "Property rates make it lucrative to expand. We also have outdrawn limits of INR90 crore (USD17.2 million)." SS closed down over a
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dozen unviable stores in FY 2009. It also moved out of the food business after announcing that its Café Brio outlets would be replaced with Café Coffee Day outlets over the next couple of months. SS BS Nagesh Managing Director said: "We have taken a call to close those ventures which are taking a longer time to break even." In March, the company closed three of its Crossword book stores – one at the Mumbai airport and two in Chennai and New Delhi. The company also closed its airport retail store Stop & Go at Mumbai airport. "The last fiscal was one of the toughest for retailers and we feel the first quarter will also be difficult. We expect things to pick up after Diwali (Oct) this year and a good year thereafter," Shrikhande said. "However, the company does not have plans to expand its speciality business in a big way this fiscal," Nagesh added.
March - According to unconfirmed reports in the local press, K Raheja Group owned Shoppers' Stop is planning to shut down three of its Crossword book stores, one in Mumbai and two in Chennai. The company has also closed down its airport retail store Stop & Go at the Mumbai airport. Following earlier announcements, the company has pulled out of the HyperCity Argos catalogue retailing. In addition, it has also moved out of food business wherein its Cafe' Brio outlets would be replaced with Cafe Coffee Day outlets over the next couple of months.
2011
April - K Raheja Shoppers' Stop has reported its financial results for the quarter. Shoppers' Stop and its retail invested companies operate the following number of stores/doors as on 31 March 2011.
Shoppers' Stop – 38 stores with a presence in 17 cities
HomeStop Stores (Home Décor) – 4 stores with a presence in 3 cities
Mothercare (exclusive franchise agreement for departmental stores with Mothercare Plc UK) - 29 stores of Mothercare (including 7 standalone stores) with a presence in 11 cities. Please note: For more information on Mothercare please see Mothercare in India.
Crossword - 69 stores,
Estee Lauder - 3 standalone stores M.A.C (retail agreement with Estee Lauder) - 18 stores in Mumbai, Bangalore, Delhi, Amritsar, Chennai, Hyderabad, Pune and Kolkata, Clinique - 8 stores (including 2 standalone)
Mixed Retailing: HyperCity – 9 stores, one store each in Amritsar, Bhopal, Jaipur, Ludhiana, Navi Mumbai, Hyderabad and Bengaluru and 2 in Mumbai, spread over an area of 984 thousand square feet (91.4 thousand square metres)
Discovery Club continues to grow and represents 44% of sales in Q4FY11. Total members are at 163 thousand.
LTL sales in Q4 was up by 11% and for FY11 was up 19%. Total Sales grew by 50% for Q4 and 84% for the year.
Other Initiatives: Airport Retailing – 1 store in Hyderabad domestic airport and 2 stores in Bangalore domestic airport. 4 duty free stores are run by the JV Company in the international airport at Bengaluru.
TimeZone Entertainment – 12 doors.
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Shoppers' Stop (Clothing stores)
Shoppers' Stop In A Page
Total Sales Number of Stores Website
India - INR 24.6 billion India - 179 www.shoppersstop.com
Shoppers' Stop - INR 15.1 billion Shoppers' Stop - 38
CAGR Senior Management Location
India - 29% Chief Operating Officer
Mr Govind Shrikhande
Eureka Towers
9th Floor, C - Wing, Plot No 504
Link Road, Malad (W)
Mumbai – 400 064
Shoppers' Stop - 19%
Summary
One of India's largest and most modern clothing store chain. Stores are usually located in modern shopping malls. The product offer takes in mens, womens and childrenswear (casual and formal) and includes a host of private label brands alongside manufacturers' brands. The merchandise ranges also includes fashion accessories, perfumes, cosmetics, home & kitchen products, with over 260,000 SKUs in total. In fiscal 2005, apparel accounted for 59.0% of Shoppers' Stop store sales.
The company has a transactional website, www.shoppersstop.com, offering clothing, fragrances & beauty, home & travel and gift ideas. It is also active on social networking sites Twitter and Facebook.
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Interactive Retail Dashboard
Sales
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Market Share
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Number of Stores
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Category Trends
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Management
Mr Govind Shrikhande
Chief Operating Officer -
Mr B Nagesh
Banner President - CEO & Managing Director - Shoppers' Stop
Mr Unni Krisnan
IT Director -
Mr Vijay Kashyap
Director Human Resources -
Mr Sanjay Badhe
Development Director - Projects & Store Planning
Mr C Navalkar
Finance Director -
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Ownership
Shoppers' Stop Limited was incorporated on June 16, 1997. Shoppers' Stop Ltd is listed on two stock exchanges in India:
The Stock Exchange, Mumbai
National Stock Exchange of India Ltd
As of March 2006, Shoppers' Stop's significant shareholders included:
Palm Shelter Estate Development Pvt Ltd - 17.18%
Raghukool Estate Development Pvt Ltd - 8.13%
Capstan Trading Pvt Ltd - 7.93%
Cape Trading Pvt Ltd - 7.90%
Anbee Construction Pvt Ltd - 7.90%
Casa Maria Properties Pvt Ltd - 7.64%
K Raheja Corp Pvt Ltd - 4.92%
Gateway Multi channel Retail is a subsidiary of Shopper's Stop.
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Store Concepts
One of India's largest and most modern clothing store chain. Stores are usually located in modern shopping malls. The product offer takes in mens, womens and childrenswear (casual and formal) and includes a host of private label brands alongside manufacturers' brands. The merchandise ranges also includes fashion accessories, perfumes, cosmetics, home & kitchen products, with over 260,000 SKUs in total. In fiscal 2005, apparel accounted for 59.0% of Shoppers' Stop store sales.
The company has a transactional website, www.shoppersstop.com, offering clothing, fragrances & beauty, home & travel and gift ideas. It is also active on social networking sites Twitter and Facebook.
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Private Label Strategy
Private Labels
Stores offer a range of private label products.
In fiscal 2005, private labels accounted for 19% of total Shoppers' Stop sales.
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Store Data
Number of Outlets
2010
Number Of Owned Outlets 38
Number Of Franchised Outlets
Number Of Independant Outlets
Number Of Outlets 38
Number Of Checkouts 190
Size of Outlets
2010
Average Sales Area SQFT 47,523
Total Sales Area SQFT 1,805,861
Category Sales (2010)
2010 (INR)
Non-Grocery 14,501,180,400
Other 646,819,600
EEO Sales (2010)
2010 (INR)
Non-EEO Banner Sales 15,148,000,000
Grand Total 15,148,000,000
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Market Shares (2010)
Banner Sales (INR)
15,148,000,000
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Category Sales (2010)
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Category Sales (2010)
Product Category Type Product Category Banner Sales (INR)
Non-Grocery Clothing & footwear 14,040,681,200
Non-Grocery Health & beauty care 151,480,000
Non-Grocery Watches & jewellery 309,019,200
Other Other 103,006,400
Other Other non-grocery 543,813,200
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Developments
1991
October - Shoppers' Stop founded. First store opens in Andheri (Mumbai). Sells menswear only.
1992
Womenswear and childrenswear added to the merchandise offer.
1994
First Citizen loyatly scheme launched.
1995
Second store opens in Bangalore.
2000
Shoppers' Stop acquired Crossword, one of India’s leading book retailing chain, from India Book House in partnership with ICICI Trusteeship Services Limited (A/c ICICI Emerging Sectors Fund).
2005
December - First trial Home Stop store opens in Bangalore.
July - Shoppers' Stop Ltd acquires the 49% stake in Crossword it did not already own from ICICI emerging Sectors Fund.
April - Shoppers' Stop launches an IPO. The company will use the proceeds of the issue to finance its expansion plans, as well as the renovation and expansion of existing stores.
2006
October - Shoppers Stop Ltd - For the six months to end September 2006, consolidated retail turnover rose by 33.8% to INR3,733 million. Pre-tax profit more than dpubled to INR220 million, while net profit rose by 108.3% to INR134 million.
2007
December - Shoppers' Stop opened a store in MGF Saket (New Delhi) and with the opening of this store taking the total to 23 stores. The company has also started 'Clinique' a cosmetic branded store through a stand alone format. Shopper's Stop has also started other brand stores under its operation. These stores are either shop in shop stores within the existing stores or as a separate stand alone store at various locations. These include three Homestop, Arcelia, Airport Retailing, 24 food and beverage outlets (including) food courts, Clinique, Crossword and Mothercare.
December - According to unconfirmed reports in the Indian press, Shoppers' Stop is planning to sell its wholly owned Crossword Bookstore in the next fiscal year. At present Crossword operates 50 outlets and Shoppers' Stop is aiming at adding another 50 stores by next year. "It serves two purposes, attract global buyers and get a better valuation for the bookstore chain when they decide to sell it off," a source reported. On the possibility of exiting some of the company's verticals, customer care associate and MD, Shoppers’ Stop B S Nagesh said, that it was too early to comment. "This is because it has got to do with our performance, industry’s performance and the competitors’ performance across the categories. Each one of the company’s businesses had a different space. Its biggest — HyperCity venture - is sitting on a few hundred thousand crore market and Crossword is part of just INR3,500 crore market."
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October - Shopper's Stop is planning to launch HyperCity Argos catalogue retailing in the forthcoming weeks. The company plans to set up catalogue retailing in Mumbai including Thane followed by suburbs of Mulund, Vashi, Airoli and then Pune. In India, HyperCity Argos is expected to have display centres, online and call and collect counters catering to customers in a particular region. HyperCity Argos is expected to match the prices to the existing single HyperCity hypermarket in Mumbai. Shoppers' Stop Customer Care Associate, MD and CEO B S Nagesh said, "It will be a pilot for the suburban Mumbai market. It requires minimum two catalogue seasons which take us one year to establish the model and then begin the rollout. I can't discuss the entire business model at this stage. All I can say is that it will be a catalogue called HyperCity Argos, which will sell merchandise sourced from all over the world across multiple categories and will be one of the most convenient ways of shopping to be ever introduced in the Indian market". The company aims at setting up the national rollout of catalogue retailing in a few years.
September - According to reports in Indian press, this festive season, Shoppers' Stop is planning to offer lower credit card based buying options for its customers. The company is aiming at offering credit options for low value products where as earlier it was only restricted to high value buys. The company is planning to give credit between INR5,000 to INR10,000 for buying low value items. For the past three years, the company has been associated with Citibank for its co branded credit card. Shoppers’ Stop Chief Executive Officer Govind Shrikhande said, “We are looking at giving credit at lower values and there would be new versions and models offered within our credit card facilities currently available. All these years we have been offering credit to buy big-ticket items ranging from INR50,000 to INR80,000. But now we are looking at giving easy loans with lower interest rates.”
September - Shoppers' Stop has opened its first pilot beauty and personal care products store Arcilia in Pune occupying 464 square metres offering cosmetics, perfumes, watches and sunglasses. By running this pilot project for a chain of beauty and personal care products the company is aiming to create a presence in the health and beauty retail segment of the country.
August - Local press reports state that Shoppers' Stop has signed an agreement with Ahmedabad-based kitchen manufacturing company Timbor Home Pvt Ltd. As a result, Timbor shop-in-shops will open in two Shoppers' Stop stores in Bangalore and Delhi. “Last week the management of Timbor signed an agreement with Shopper’s Stop. As per the agreement the company will open two of its stores within the Shopper’s Stop stores, under its own brand-name. The shops will spread over 150 square feet of space to Timbor. The company earlier refused tie up offers from retail giants like Reliance, Big Bazaar and Pantaloons and decided to tie up with Shopper’s Stop,” said Anant Maloo, Managing Director, Timbor Home Pvt Ltd.
July - Local reports suggest that Spanish clothing giant Zara has held talks with Future Group and Shopper’s Stop with a view to forming a tie-up to enter the Indian market.
July - Local reports state that Shoppers' Stop has decided to start catalogue retailing in the country under a franchise from Home Retail Group of the UK. Products will be delivered to homes and can be ordered over the internet as well as through the catalogue. The company will do a pilot test in the last quarter of this year.
July - Managing Director BS Nagesh reveals that Shoppers' Stop Ltd is planning a rights issue of up to USD125 million to help fund a planned expansion.
June - Shoppers’ Stop is to tie up with US department store operator Macy’s Inc. The deal will give Shoppers’ Stop access to new brands.
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March - Shoppers' Stop Ltd is to exercise its right to buy a 19% stake in HyperCity Retail (India) Pvt Ltd. Shoppers Stop has the option to acquire a 51% stake in the hypermarket operator.
March - Shoppers’ Stop has entered into a three year non-exclusive agreement to operate Buid-a- Bear Workshop concessions in its stores. If successful, it could be expanded into stand alone stores.
2008
December - As per unconfirmed reports in the local press, Shoppers' Stop same-store sales growth slowed to 7% for the first half of FY-09, from an annual 20% across formats in FY-08. At present the company operate stores in 12 cities across product segments occupying 153,346 square metres of retail space. While transaction size moved up 9% for H1FY-09, volumes actually declined 3%, indicating that the improvement may have been on account of a higher contribution from the luxury segment. Apparel (clothing) sales, usually offering higher margins, have increased to about 62% of sales for H1FY-09 over 59% for the same period last year. Customer entry, though up by a marginal 1% in H1FY-09, dropped 6% in Q2FY-09. Conversion of footfalls into sales improved on a quarterly basis. More than 70% of sales at Shoppers' Stop come through its loyalty program, First Citizens Club.
December - K Raheja owned Shoppers' Stop has launched its 26th store in Sun-city, Jaipur.
December - Shoppers' Stop has announced its plans to pursue its expansion despite the slow down in sales. The company has also reported to invest INR1,000 crore(USD219 million) for expanding its current retail space of 120,818 square metres to 250,929 square metres over the next three-four years.
June - Shoppers' Stop is planning to sell UK-based Early Learning Centre (ELC) toys beginning with its stores in Juhu and Malad (Mumbai). ELC was bought over Mothercare in 2007. Shoppers' Stop has franchise arrangements with Mothercare and operates 19 Mothercare stores (ten shop-in-shop outlets and nine standalone stores) in India.
June - Shopper's Stop has launched Stop & Go (airport retailing) at the Bangalore International Airport in India. With the addition of this store, the company now operates 129 stores across different formats across the country. The group operates 24 Shopper's Stop, three Home Stop, two Arcelia, three Stop & Go, four MAC, 25 Cafe Brio/Desi Cafe (including two food courts), one Clinique, 48 Crossword (including 11 shop-in-shops and 37 standalone stores) 19 Mothercare (ten shop-in-shops and nine standalones). Shopper's Stop occupies an area of 139,405 square metres.
April - According to reports in the Indian press, Shoppers' Stop plans to invest USD350 million and double the number of stores to 50 by the end of 2010. The first phase of raising money began last month with the company filing for a rights issue (USD120 million). Shoppers' Stop managing director S Nagesh said, "The total amount required for expansion is USD350 million and a part of this will be raised through a rights issue. The rest will come through debt and internal accruals."
April - According to reports in the Indian press, Shoppers' Stop has announced the launch of its second Stop & Go format store in Hyderabad International Airport. The first Stop & go store is already operational in Mumbai Airport. Stop & Go consists of a Shoppers' Stop and Desi Cafe operating out of an airport. At present the company operates 24 Shoppers' Stop, three Home Stop, two Arcelia, two Stop & Go, four MAC, 25 Brio/Desi Cafe, one Clinique, 48 Crossword (eleven of which are shop in shop formats) and 18 Mothercare (ten of which are shop in shop formats).
March - According to reports in the Indian press, following earlier announcements of Shoppers' Stop signing a memorandum of understanding with Argos (UK) for catalogue, online and home shopping in February. The company is planning to set up online retailing for Shoppers' Stop and Crossword by next quarter. Shoppers' Stop managing
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director B S Nagesh said, "We are planning to take the Shoppers' Stop and Crossword brands online by the end of the next quarter, whereas the Hypercity Argos online site which is already operational will become transactional by May."
March - According to reports in the Indian press, Shoppers' Stop is planning to add 250,929 square metres to its existing 120,818 square metres over the next three to four years. Shoppers' Stop customer care associate and chief executive officer Govind Shrikhande said, "We are looking at an investment of more than INR250 crore (USD63 million) over almost four years." The company has earmarked INR50 crore (USD13 million) for increasing its stake in HyperCity from the current 19% to 50% by December this year. The company is planning to set up 24 stores across 24 cities within the next four years. The company has also earmarked INR150 crore (USD40 million) to expand Mothercare, Crossword Book Store and HomeStop stores and aims at investing INR25 crore (USD6 million) in its airport retailing venture with Nuance Group AG. "The investment will be funded through the rights issue and internal accrual," he said. According to company sources, "The rights issue is likely to be filed within next three to four weeks and the subscription for that is likely to get over last week of May, this year. The rights issue will consist of INR300 crore (USD76 million) equity component and around INR200 crore (USD51 million) of debt. Shoppers' Stop is also looking at increasing the size of its new stores from the existing 6,041 to 7,900 square metres, which will give it space for another 50-80 brands."
February - According to reports in the Indian press, Shopper's Stop Managing Director B S Nagesh commented on where retail is headed and the challenges ahead for the company and the industry. "At Shopper's Stop, one of the things we have been very focused on for 16 years is that we have not tinkered with the brand and we have remained in what is called the department store category. One of our biggest successes has been at our Rajouri Garden store in Delhi because we have doubled the size of the store to 13,011 square metres from 6,041 square metres average. For instance, for us to reach from our current 148,700 million square metres 278,810 square metres to 557,620 square metres, we need only INR1,500 - 1,700 crore (USD380 - 431 million). We will go to our existing shareholders for rights (issue to raise) up to INR500 crore (USD 127 million) and borrow INR500 crore and still we will be less than a 1:1 debt equity (ratio)," he added.
February - According to reports in the Indian press, Shoppers' Stop Managing Director B S Nagesh denied media reports about the company being sold off. As per local papers, the parent company (K Raheja) is looking to sell Shopper's Stop, as well as its other retail formats Home Stop, Crossword, Stop & Go and Brio. Nagesh said, "These are just baseless market rumours. There is no credibility whatsoever. Shopper's Stop is not for sale." Reports quoted unnamed sources saying that Reliance Retail and Aditya Birla Retail are taking a serious look at the sales talk. At present, Shopper's Stop operates 23 stores in 12 cities across the country.
February - According to reports in the Indian press, Shoppers' Stop is planning to set up stores in Hyderabad and Kolkata. Shoppers' Stop CEO Govind Shrikhande said, "We are planning to open a store each in Kolkata and Hyderabad. The Kolkata store will be launched in March, while Hyderabad will get another new store in April." In Kolkata, the new Shoppers' Stop is expected to open at Shreeram Arcade and will be the company's third store in the city (after the stores at Forum Mall and Salt Lake). According to a company official, the first Shoppers' Stop in Hyderabad is located at Begumpat. The stores would offer all the brands associated with Shoppers' Stop. "All major brands associated with Shoppers' Stop will be present at the new stores as well." He denied media reports on the company’s association with John Lewis (United Kingdom).
February - According to local reports, Shoppers' Stop plans INR500 crore (USD127 million) rights issue to fund its expansion. The company aims at occupying 278 thousand square metres retail space by setting up 20 Shoppers' Stop stores and 13 Hypercity outlets in the next two years. Shoppers Stop Managing Director B S Nagesh said, "It will be one of the biggest expansions for the company with a fund requirement of INR450-600 crore (USD114-152 million). The board has approved a rights issue of up to INR500 crore and plans to raise the remaining amount through debt." According to a company source, the company is expected to file papers for the rights issue with the market regulator in a couple of weeks.
2009
November - K Raheja owned Shoppers' Stop is planning expand its existing network of retail outlets across the country. Shoppers' Stop Vice President Marketing and Loyalty Vinay Bhatia said: "We will invest INR250 crore (USD51.2 million)
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in the next three years to add another 15 stores. Each store would require an investment of INR12-15 crore (USD2.4-3 million). A major chunk of the investment will come from internal accruals. The company has been able to decrease its operational cost by 30% and is now focused on increasing its topline." He continued to say. "The top management has resorted to 5-15% pay cut as part of the company's cost cutting measures. One of the reasons we are able to expand is that we have resorted to a lot of cost cutting measures and have focused on increasing the topline. The company has increased its topline by 7% to INR720 crore (USD148 million) in the first half of the current fiscal. Besides this, the company is also increasing its advertising and marketing budget with more focus on direct marketing."
November - K Raheja owned Shoppers' Stop is planning to raise funds to acquire 32% in group firm and hypermarket chain Hypercity, a top official said. "The company is looking at generating INR1-1.2 billion (USD20.4-24 million) for the acquisition," Shoppers' Stop President and Chief Executive Govind Shrikhande said. The company's board has already approved an issue of 4 million shares to institutional investors and also 4 million convertible warrants to founders, but is yet to specify how much it would be raising. "Shoppers' Stop also has plans to open 15 to 18 stores in India over the next 40 months with an average investment of INR1 billion (USD20.4 million) a year," Shrikhande added. He continued to say, "Customer confidence is improving, rental rates are coming down and overall costs are also coming down. Rents were down nearly 35-40% compared to a year earlier, while realty owners were now more ready to enter into revenue sharing agreements with tenants than previously."
August - According to Mumbai's Financial Chronicle, Shoppers' Stop is cutting back on its expansion. The report states that since December 2008, the company's sales area has remained almost constant at around 167,000 square metres.
July - As per reports in the local media, Shoppers' Stop licensee UK based Mothercare may soon end its three year old exclusive franchise agreement and stop selling its products in India. Mothercare is believed to be looking for another local partner and is reportedly in talks with Tata Group owned Trent. Shoppers Stop, Trent and Mothercare declined to comment on the development. Industry sources are of the opinion that Mothercare hasn't been very satisfied with the performance of its stores in India. At present, the company operates 21 Mothercare stores, comprising eight standalone outlets and 13 shop-in-shop stores within its own department store, spread across 10 cities, including six metros. The stores offered a large range of products, including clothing, hardware and toys, for mothers to be, infants and pre-school kids and sources over 70% of products sold in the country are globally sourced. Mothercare standalone stores are usually spread over 279-558 square metres, while shop-in-shop inside a Shoppers Stop store is typically trade through 167-187 square metres of retail space.
June - K Raheja owned Shoppers' Stop will invest about INR40 crore (USD7.6 million) in the current fiscal to roll out more stores. Shoppers' Stop Customer Care Associate and Managing Director BS Nagesh said: "We have just opened our 27th store in Hyderabad and we plan to open 3-4 stores this fiscal at an investment of INR10 crore (USD1.9 million) each. The group has also signed agreements for more outlets and hence could end the year with 30-35 stores. The expansion is being funded through internal accruals. There is definitely another two quarters of pain left. We expect a turnaround in the January-March quarter of 2010. But, we see margins improving from October-December because of the festival season." Following earlier announcements, the group closed its bookstore format, Crossword, in Chennai, New Delhi and Mumbai airports, it also shut down its airport retail venture Stop & Go in Mumbai. In January this year, the company also reported winding up Argos and Brio format. "Shoppers' Stop would focus on consolidating its operations and there will be no new joint ventures this year. The Government should allow FDI to come through because it would bring in expertise which would help the sector grow," Nagesh added.
May - "Shoppers Stop plans to open 12 more outlets with a total area of 60 thousand square metres in the next three years by taking advantage of the fall in mall rentals, reversal of service tax thereon and possible revival in the economy. The company required a capex of INR91 crore (USD17.4 million) on the store openings and INR32.50 crore (USD6.2 million) on the inventory for these 12 stores. The company was planning to fund the expansion from internal accruals, debt and possible equity infusion," a company official reported. The company plans to open four stores this fiscal in cities including the likes of Bangalore, Ahmedabad and Hyderabad, moreover four each in the next two fiscals, each store measuring around 5,111 square metres. As per sources, mall rentals have fallen 35-40% in some cities from their peak in the past couple of years. Shoppers Stop (SS) Chief Executive Govind Shrikhande said: "Property rates make it lucrative to expand. We also have outdrawn limits of INR90 crore (USD17.2 million)." SS closed down over a dozen unviable stores in FY 2009. It also moved out of the food business after announcing that its Café Brio outlets would be replaced with Café Coffee Day outlets over the next couple of months. SS BS Nagesh Managing Director said: "We have taken a call to close those ventures which are taking a longer time to break even." In March, the company
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closed three of its Crossword book stores – one at the Mumbai airport and two in Chennai and New Delhi. The company also closed its airport retail store Stop & Go at Mumbai airport. "The last fiscal was one of the toughest for retailers and we feel the first quarter will also be difficult. We expect things to pick up after Diwali (Oct) this year and a good year thereafter," Shrikhande said. "However, the company does not have plans to expand its speciality business in a big way this fiscal," Nagesh added.
2010
October - Shoppers Stop has launched its third shop-in-shop Body Shop ethical beauty concession and now has Body Shop outlets within its stores at Nirmal Lifestyle, Mulund and Bannerghatta, Bangalore. The group plans to open a further Body Shop in the upcoming Prozone Mall development at Aurangabad.
March - K Raheja has opened Mothercare store at Malleshwaram, Bengaluru. With the opening of this store, the company has now 25 Mothercare stores with eight standalone and 17 shop-in-shop stores. In addition, Shoppers' Stop now has 30 stores present in 13 cities including Mumbai (eight stores), Delhi (three stores), Kolkata (three stores), Bengaluru (three stores), Hyderabad (three stores), Jaipur (two stores), Pune (two stores) and one store each in Gurgaon, Chennai, Ghaziabad, Lucknow, Noida and Amritsar. Shoppers' Stop President and CEO Govind Shrikhande said: "The next upcoming store will open at Venus Square mall in Ahmedabad, Gujarat, by end of March 2010."
March - K Raheja owned HyperCITY expects to close the year with revenue of around INR350 crore (USD75 million). The company reportedly invested INR400 crore (USD85 million) and aims at achieving a break even by March 2011. HyperCITY Retail Vice Chairman BS Nagesh said: "The hypermarket chain would achieve a company level break even in FY 2012-13." As of now the company operates six stores across the country and is all set to open the seventh in Bangalore next week. In the next two-three quarters, it plans to add another 500 thousand square feet of retail space across three cities. Nagesh continued to say, "The company plans to expand its footprint in the Southern and Western regions and certain cities in Punjab. Bangalore can take three more stores, which would happen in 18-36 months." Shoppers' Stop, which has a 19%stake in HyperCITY, has the option of increasing the stake to 51% in June this year. The company plans to raise funds for this through a QIP, about INR250-300 crore (USD53-75 million). "We have already issued warrants to the promoters in December 2009," he added.
March - Shoppers' Stop is planning to open 13 stores across India. With this, the company will have 41 stores across the country. Shoppers' Stop CEO and President Gobind Shrikhande said: "With the retail scene in the country showing an upswing, they were on an expansion spree. The company has earmarked INR120 crore (USD26 million) for this expansion. We propose to open at least three stores by the end of the month, at Amritsar, Ahmedabad and Bangalore".
January - K Raheja owned Shoppers' Stop is looking to raise capital through qualified institutional placement route by March 2011 to fuel expansion. Shoppers' Stop Vice Chairman B Nagesh said: "We are looking at raising around INR250-350 crore (USD53-75 million) by the end of next fiscal for our expansion plans and also hiking our stake in HyperCITY. Of the total amount, about INR30 crore (USD6.4 million) has been raised through issue of preferential warrants in December 2009." In addition, the company is planning to expand its outlets to 43 by adding another 14 by the end of the current fiscal.
2011
April - K Raheja Shoppers' Stop has reported its financial results for the quarter. Shoppers' Stop and its retail invested companies operate the following number of stores/doors as on 31 March 2011.
Shoppers' Stop – 38 stores with a presence in 17 cities
HomeStop Stores (Home Décor) – 4 stores with a presence in 3 cities
Mothercare (exclusive franchise agreement for departmental stores with Mothercare Plc UK) - 29 stores of Mothercare (including 7 standalone stores) with a presence in 11 cities. Please note: For more information on Mothercare please see Mothercare in India.
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Crossword - 69 stores,
Estee Lauder - 3 standalone stores M.A.C (retail agreement with Estee Lauder) - 18 stores in Mumbai, Bangalore, Delhi, Amritsar, Chennai, Hyderabad, Pune and Kolkata, Clinique - 8 stores (including 2 standalone)
Mixed Retailing: HyperCity – 9 stores, one store each in Amritsar, Bhopal, Jaipur, Ludhiana, Navi Mumbai, Hyderabad and Bengaluru and 2 in Mumbai, spread over an area of 984 thousand square feet (91.4 thousand square metres)
Discovery Club continues to grow and represents 44% of sales in Q4FY11. Total members are at 163 thousand.
LTL sales in Q4 was up by 11% and for FY11 was up 19%. Total Sales grew by 50% for Q4 and 84% for the year.
Other Initiatives: Airport Retailing – 1 store in Hyderabad domestic airport and 2 stores in Bangalore domestic airport. 4 duty free stores are run by the JV Company in the international airport at Bengaluru.
TimeZone Entertainment – 12 doors.
March - Future Group owned Pantaloon Retail and K Raheja owned Shoppers' Stop and other Indian clothing retailers shut their stores on 7 March, to protest the government's decision to levy a 10% tax on branded apparel, an industry group said. More than 10,000 shops in the country remained closed, Retailer's Association of India CEO Kumar Rajagopalan said. Clothing and apparel makers have sought a meeting with government officials to discuss the tax, said Clothing Manufacturers’ Association of India President Rahul Mehta. The shops will reopen tomorrow. Shoppers' Stop has dropped 10% in Mumbai trading since Indian Finance Minister Pranab Mukherjee on February 28 announced the 10% tax in the country's union budget for 2011-2012. "The charge may slow demand for branded clothes after higher cotton prices already pushed up prices. This is going to increase the price of garments. Consumption will come down, especially at a time when customers are reeling under inflationary trends," Rajagopalan added. "Prices of apparel in the nation have risen by as much as 35% in the last year, because of the cotton prices, Clothing Manufacturers’," Mehta said. Shoppers' Stop shut 34 stores in 15 cities to join the strike, its spokeswoman Malini Sharma said. Reliance Trends, Reliance Retail closed 42 stores in 27 cities, said Reliance CEO Arun Sirdeshmukh.
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TimeZone (Other revenues)
TimeZone In A Page
Total Sales Number of Stores Website
India - INR 24.6 billion India - 179
TimeZone - INR 1.2 billion TimeZone - 12
CAGR Senior Management Location
India - 29% Construction House ‘A’,
24th Road, Khar (West),
Mumbai – 400 052
TimeZone - 0%
Summary
Timezone operates family entertainment centres.
Please note: To avoid double-counting, store operations data relates to stand-alone stores only.
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Interactive Retail Dashboard
Sales
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Market Share
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Number of Stores
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Category Trends
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Ownership
In October 2006, Shopper’s Stop Ltd forayed into the entertainment sector by acquiring a 45% stake in Timezone Entertainment Pvt. Ltd.
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Store Concepts
Timezone operates family entertainment centres.
Please note: To avoid double-counting, store operations data relates to stand-alone stores only.
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Store Data
Number of Outlets
2010
Number Of Owned Outlets
Number Of Franchised Outlets
Number Of Independant Outlets
Number Of Outlets 12
Number Of Checkouts
Size of Outlets
2010
Average Sales Area SQFT 10,764
Total Sales Area SQFT 129,167
Category Sales (2010)
2010 (INR)
Other 1,205,003,100
EEO Sales (2010)
2010 (INR)
Non-EEO Banner Sales 1,205,003,100
Grand Total 1,205,003,100
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Market Shares (2010)
Banner Sales (INR)
1,205,003,100
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Category Sales (2010)
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Category Sales (2010)
Product Category Type Product Category Banner Sales (INR)
Other Services 1,205,003,100
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Developments
2006
October - Shopper’s Stop Ltd acquires a 45% stake in Timezone Entertainment Pvt. Ltd.
2011
April - K Raheja Shoppers' Stop has reported its financial results for the quarter. Shoppers' Stop and its retail invested companies operate the following number of stores/doors as on 31 March 2011.
Shoppers' Stop – 38 stores with a presence in 17 cities
HomeStop Stores (Home Décor) – 4 stores with a presence in 3 cities
Mothercare (exclusive franchise agreement for departmental stores with Mothercare Plc UK) - 29 stores of Mothercare (including 7 standalone stores) with a presence in 11 cities. Please note: For more information on Mothercare please see Mothercare in India.
Crossword - 69 stores,
Estee Lauder - 3 standalone stores M.A.C (retail agreement with Estee Lauder) - 18 stores in Mumbai, Bangalore, Delhi, Amritsar, Chennai, Hyderabad, Pune and Kolkata, Clinique - 8 stores (including 2 standalone)
Mixed Retailing: HyperCity – 9 stores, one store each in Amritsar, Bhopal, Jaipur, Ludhiana, Navi Mumbai, Hyderabad and Bengaluru and 2 in Mumbai, spread over an area of 984 thousand square feet (91.4 thousand square metres)
Discovery Club continues to grow and represents 44% of sales in Q4FY11. Total members are at 163 thousand.
LTL sales in Q4 was up by 11% and for FY11 was up 19%. Total Sales grew by 50% for Q4 and 84% for the year.
Other Initiatives: Airport Retailing – 1 store in Hyderabad domestic airport and 2 stores in Bangalore domestic airport. 4 duty free stores are run by the JV Company in the international airport at Bengaluru.
TimeZone Entertainment – 12 doors.
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