Shoppers Stop Limited: history, ownership, mission, how it works & makes money

A Brief History of Shoppers Stop Limited

Shoppers Stop Limited, established in 1991, is one of India's leading department store chains. The company was founded by K. Raheja Corp and initially launched its first store in Andheri, Mumbai.

In 2001, Shoppers Stop became the first retailer to offer a loyalty program in India, known as “First Citizen.” This program significantly boosted customer retention and loyalty.

Shoppers Stop has consistently expanded its footprint across India. As of 2023, it operates over 100 stores in various formats, including Shoppers Stop, HomeStop, and BIBA.

In 2010, the company ventured into e-commerce with its online platform, enhancing its reach to digital shoppers. The pandemic in 2020 accelerated the shift towards online retail, leading to a reported revenue from e-commerce that accounted for around 25% of total sales in 2021.

Shoppers Stop reported a revenue of approximately INR 2,500 crores in the fiscal year 2021-22. The company faced challenges during the pandemic, resulting in a 29% drop in revenue in 2020, but rebounded with a growth of 35% in 2021 as stores reopened.

On the financial front, as of the fiscal year 2022-23, Shoppers Stop Limited reported:

The company has also focused on expanding its private label products, which now contribute to about 30% of total sales. The strategic focus on omni-channel retailing has positioned Shoppers Stop favorably amidst evolving consumer preferences.

In 2021, Shoppers Stop entered into a partnership with Walmart India, allowing it to leverage the latter's scale and supply chain capabilities, which has been instrumental in improving operational efficiencies.

As of the latest reports in September 2023, Shoppers Stop’s stock is traded on the BSE and NSE, with a market capitalization of approximately INR 3,700 crores. The stock has shown resilience, with an increase of nearly 60% over the past year.

Shoppers Stop continues to innovate and adapt to market trends, ensuring its place as a key player in India's retail landscape.

A Who Owns Shoppers Stop Limited

Shoppers Stop Limited, a prominent player in the Indian retail sector, operates under the aegis of its parent company, the K Raheja Corp Group. As of the latest shareholding patterns reported for the quarter ending September 2023, the ownership structure is as follows:

The primary promoters of Shoppers Stop, the K Raheja Corp, have been instrumental in guiding the company's strategic direction. The current Managing Director, Rajiv Suri, plays a critical role in shaping its operational strategy. The company's substantial shareholding by FIIs indicates a robust interest from international investors, reflecting confidence in Shoppers Stop's future growth prospects.

Recent financial performance highlights include a revenue of approximately ₹3,076 crore for the fiscal year 2022-2023, showcasing a year-on-year growth of 22%. The net profit for the same period was reported at ₹167 crore, up from ₹105 crore in the previous year, representing a remarkable growth of 59%.

During the first half of fiscal year 2023-2024, the company's stock performance has shown resilience. The share price as of September 30, 2023, was approximately ₹600, reflecting a growth of around 30% year-to-date. This upward trajectory is attributed to the successful implementation of omnichannel retail strategies, alongside an expanding product portfolio and enhanced customer service initiatives.

Shoppers Stop continues to explore strategic partnerships and collaborations to enhance its market share. The company’s investments in technology and supply chain improvements are aimed at optimizing operational efficiencies and customer experience, further solidifying its position in the competitive retail landscape.

Shoppers Stop Limited Mission Statement

Shoppers Stop Limited, a prominent retail chain in India, aims to provide customers with a wide range of products while ensuring an exceptional shopping experience. The company's mission statement emphasizes its commitment to quality, customer satisfaction, and a unique shopping environment. As part of its customer-centric approach, Shoppers Stop focuses on enhancing the quality of life through curated merchandise that reflects the latest trends.

The retail giant positions itself as a department store offering various product categories, including apparel, accessories, beauty products, and home furnishings. This diversification is reflected in its revenue streams, which for the fiscal year 2022-2023 amounted to INR 3,228 crore, a significant increase from INR 2,758 crore in the previous year.

Shoppers Stop is committed to sustainability and community engagement, aligning its mission with broader environmental goals. As of 2023, the company has implemented several initiatives aimed at reducing its carbon footprint, including a reduction in plastic usage by over 30% since 2021. Furthermore, its focus on responsible sourcing is evident in its partnerships with over 300 local artisans and brands, promoting sustainable fashion practices.

The company also aims to enhance customer engagement through digital transformation initiatives. They have invested approximately INR 150 crore in upgrading their online shopping platform, which has contributed to a substantial increase in online sales, which reached INR 700 crore for the fiscal year 2022-2023, representing a growth of 20% year-over-year.

Shoppers Stop Limited's mission statement encapsulates its philosophy of delivering excellence in retail while fostering a responsible and sustainable business model. With a focus on customer satisfaction and sustainable practices, the company is well-positioned to capitalize on the growing trends in the Indian retail sector.

How Shoppers Stop Limited Works

Shoppers Stop Limited is a leading retail chain in India, primarily engaged in the business of department store retailing. The company operates multiple formats, including hypermarkets, department stores, and specialty stores, focusing on a wide range of products from apparel to home goods.

The company's retail operations are driven by a robust business model that includes both physical and online stores. As of the latest reports, Shoppers Stop operates over 100 stores across India, strategically located in metropolitan and tier-1 cities.

Financial Performance

For the fiscal year ending March 2023, Shoppers Stop reported a total revenue of ₹3,140 crore, reflecting a growth of 23% compared to the previous year. The company's net profit for the same period stood at ₹182 crore.

The growth in revenue can be attributed to a combination of increased consumer spending, expansion of product lines, and enhanced digital initiatives, including a refined e-commerce platform that has seen significant traction.

Product Offerings

Shoppers Stop offers a diverse array of merchandise, which includes:

• Apparel
• Footwear
• Accessories
• Home Furnishings
• Cosmetics and Personal Care

Market Position

As of the end of 2023, Shoppers Stop holds a significant share in the Indian retail market, with approximately 3.5% of the total organized retail space. The company's brand portfolio includes both in-house labels and various international brands.

Shoppers Stop has also focused on enhancing its customer loyalty program, "First Citizen," which boasts over 3 million members, contributing to repeat sales and customer retention.

Technology Integration

The company has invested heavily in technology to improve customer experience both in-store and online. The implementation of AI and data analytics has enabled Shoppers Stop to personalize shopping experiences and optimize inventory management. In the latest fiscal year, the company reported a digital sales contribution of 10% to its overall revenue.

Challenges and Future Outlook

Shoppers Stop faces stiff competition from both traditional retailers and online platforms. The company's management is focusing on expanding its online presence and enhancing its omnichannel strategy. Analysts project that if current trends continue, Shoppers Stop's market share could grow to 5% by 2025.

The retail sector is expected to grow at a CAGR of 9-10% over the next five years, providing a favorable environment for Shoppers Stop's expansion plans.

Conclusion

Shoppers Stop Limited continues to adapt to market trends, leveraging technology and a strong brand presence to maintain its competitive edge in the retail sector.

How Shoppers Stop Limited Makes Money

Shoppers Stop Limited is a prominent player in the Indian retail sector, primarily operating department stores with a diverse range of products, including apparel, accessories, and home furnishings. The company generates revenue through several key segments:

1. Retail Sales

The bulk of Shoppers Stop's revenue comes from retail sales. For the fiscal year 2022-2023, the company's total revenue reached approximately ₹4,090 crore, with retail contributing around ₹3,700 crore. The company operates over 80 stores across India, with an average store size of around 40,000 square feet.

• Apparel Sales: Contributes around 50% of retail sales.
• Cosmetics and Personal Care: Accounts for about 20%.
• Home and Lifestyle Products: Represents approximately 15%.
• Footwear: Makes up around 10%.
• Other categories: Contributes the remaining 5%.

2. Private Label Brands

Shoppers Stop has developed numerous private label brands, which significantly enhance profit margins. In FY 2023, private labels accounted for around 30% of total sales, translating to approximately ₹1,110 crore in revenue. Popular private label brands include Stop and Kashish.

3. E-commerce Sales

Shoppers Stop has expanded its online presence, which has been a crucial growth area, especially post-pandemic. In FY 2023, e-commerce sales were reported at approximately ₹400 crore, which represents about 10% of total sales. The company aims to increase this figure as online shopping continues to grow.

4. Loyalty Program - FIRST

The FIRST loyalty program plays a vital role in driving customer retention and sales. As of FY 2023, the program has over 6 million members, providing insights into customer buying patterns and preferences, which helps tailor marketing strategies effectively.

5. Franchise and Joint Ventures

Shoppers Stop has entered various joint ventures and franchise agreements, allowing for additional revenue channels. In FY 2023, the contribution from these partnerships was approximately ₹150 crore.

6. Financial Performance Overview

The company's focus on enhancing its product mix, improving store experiences, and expanding online services continues to drive financial growth and profitability.