RETAIL MANAGEMENT ASSIGNMENT

A COMPARATIVE STUDY ON
SHOPPERS STOP & WESTSIDE

SUMMIYA SAIFY
08PG198
Marketing - A
Indian Retail Sector

The Indian Retail Sector has undergone rapid transformation by setting scalable and profitable
retail models across various categories and formats. Traditional markets are making way for
departmental stores, hypermarkets, supermarkets and specialty stores. The modern malls cater
to shopping, entertainment and food, all under one roof. It was estimated that India will have
over close to 50 million square feet of quality retail space by the end of 2007. The growth in
mall space has been over ten fold in four years: from about 2 million square feet in 2002 to 28
million square feet in 2006. The Indian Retail market is estimated to be worth around Rs.
14,100 billion. The organized retail market has increased its share from 3 % in 2004 to around 4
% in 2006 and is valued at Rs. 511 billion.

Key Drivers Challenges

Changing Demographic profile Human resource
Rising income levels Technology
Increasing Middle class consumption growth logistics
Real Estate Boom Market Information and Presence
Technology Investments
Fluidity
Exposure to international trends

Overview of Retailing in India

The Indian Retail market is estimated to be worth around Rs. 14,100 billion. The organized retail
market has increased its share from 3 % in 2004 to around 4 % in 2006 and is valued at Rs. 511
billion (source: India Retail Report 2007). Food and grocery is estimated to be the largest single
block, but the contribution of the organized sector is at 0.8 %. The clothing, textile and fashion
accessories constitute the second largest block where nearly 17.5 % is contributed by the
organized sector. Footwear has the highest contribution from organized retail (36 %).

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Organized Retail Formats of shoppers stop and Westside:

Shopper‘s Stop is known as multi-Brand retail outlet because of their verity of Products. They
offer various products like apparels, Accessories, Toys, Fragrances, Beauty Products, Travelling
products, Home Appliances, etc. They offer various products like Apparels, Fragrance & Beauty,
Home & Travel, Gift ideas. Under this they have different Categories, Brands and Styles to offer
customers. They have many other showrooms of Shopper‘s Stop in Delhi and NCR, so we can
say that they have long chain of retail outlets. They also offer online purchasing which means
that they are using new technology to increase their sales.

Department Stores

Department stores are a major part of organized retailing. They serve the upper-middle and
higher income segments. Clothing, textiles and fashion accessories are the most important
product category sold by these retailers. The number of department stores has increased
manifold since 2004. The number of outlets of Pantaloons has increased from 12 in 2004 to 28
in 2006; Shoppers’ Stop from 13 outlets in 2003 to 26 in 2006.

The following document will be comparing the two popular departmental formats in the Indian
retail market

 WESTSIDE
 SHOPPERS STOP

The location selected is Garuda mall, Bangalore

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A brief outline on the Garuda mall

It proudly claims to be one of the biggest malls in south Asia. Spread out over 750,000 sq ft,
includes 26,000 sq. meters of shopping and entertainment space on five floors and 120 stores.
The Garuda Mall in Bangalore is a glittering retail palace. Shoppers Stop to Westside and more
up market stores like Marks & Spencer and Mango. It has a full floor selling women product.
But the most important touch is down in the basement: a car park that can effortlessly handle
1,000 cars and 600 two-wheelers. Garuda's entertainment options include the INOX, with five
screens and 1,150 seats and activity centers for children. The complex will also offer shoppers a
wide range of cuisines at the food court with over 20 food counters along with Sikandar and
Kobe sizzlers. There are dining options in five exclusive restaurants serving Oriental,
Continental, Mediterranean and Frontier cuisines.

SHOPPERS STOP: Shopper’s Stop Ltd., has redefined retail in India, taking it to the next level.
From being just the sale of goods to consumers, the company has created a unique aura around
retail and turned it into an experience, an indulgence. The pioneer of organized retail in India,
Shopper’s Stop Ltd., has been instrumental in bringing about a retail revolution in the country
and has become the highest benchmark for the industry. With its growth plans firmly in place

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and undeniable leadership in the field, Shopper’s Stop Ltd., is well on its way to raise the bar of
performance even higher. Shopper’s Stop Ltd. has made this purchase of goods extremely
pleasurable. The stores have redefined shopping by making it more than just a transaction. The
entire shopping process is the coming together of an amazing array of offerings, warm but
unobtrusive service and special privileges and benefits that translate every visit into customer
delight.

Since its inception in 1991, Shopper’s Stop Ltd., which was founded by the K Raheja Corp.
Group (Chandru L Raheja Group), one of the leading players in the country in the business of
real estate development and hotels, has been offering premium and luxury value for the entire
family. Shopper’s Stop Ltd. has metamorphosed from being a chain of retail stores to emerging
as a Fashion & Lifestyle destination, which now includes retail concepts such as bookstores,
cafés and high-end lifestyle merchandise for the growing affluent middle class in India. Today,
its name is synonymous with superior quality product, services and above all, an international
shopping experience.

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In order to enhance the level of customer service and gain insight into new and emerging
practices followed internationally, Shopper’s Stop Ltd. is a member of the Inter Continental
Group of Department Stores (IGDS). It is the only Indian member along with 29 other
experienced retailers from all over the world. Leveraging expertise, excellence and experience,
Shopper’s Stop Ltd. has become a benchmark for the Indian retail industry to follow. Continuing
expansion plans, presence across several retail formats and international offerings will
empower Shopper’s Stop Ltd. to meet and exceed the expectations of shoppers at the micro
level and the industry at the macro level.

The company’s flagship business of department stores is manifest in Shoppers’ Stop. A pioneer
of organized retail in India, Shoppers’ Stop today, is the country’s biggest Department Store
Chain. It offers customers an international shopping environment and a world-class shopping
experience through its 20 stores in 11 cities. It houses a host of international and domestic
brands across categories such as apparel, accessories, cosmetics, home & kitchenware as also
its own private brands.

Shoppers‟ Stop offers a wide range of brands (more than 400 brands) for the entire family to
choose from. Exclusive and established brands share shelf space to offer an array of choices
customers across all ages, tastes and occasions. Shoppers‟ Stop is the single largest retailer for
Levi’s Strauss, Pepe, Lee, Arrow, Zodiac, Ray-Ban, Swatch, among others. It is also a launch pad
for non-apparel brands like Walt Disney, Tencel, Clarins and Elizabeth Arden.

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SWOT OF SHOPPERS STOP:

Strengths Weakness
Variety Very high prices
Range Less Schemes
`Different Brands Less Discounts
Pioneer Competition from standalone stores
Loyal customer Late entry into value retailing
Low risk Store makeover expenditure
Good financial position
Presence across various segments
Parikrama the festival

Threats Opportunities
Government Policies Awareness about the brands
Entrance of New Players Quality
High attrition Youngsters
Lesser consumer spending Higher disposable income
Entry of foreign players Collaborate
Unorganized sector Private levels
Independent stores Tier 2 & tier 3 cities
Enter new consumer goods segments.

WESTSIDE: Style, affordable prices, quality these are the factors that have shaped Westside's
success story in the retail fashion stores business. Launched in 1998 in Bangalore, the Westside
chain has, ever since, been setting the standards for other fashion retailers to follow.

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Established in 1998 as part of the Tata Group, Trent Ltd. operates Westside, one of India's
largest and fastest growing chains of retail stores.

The Westside stores have numerous departments to meet the varied shopping needs of
customers. These include Menswear, Women’s wear, Kid’s wear, Footwear, Cosmetics,
Perfumes and Handbags, Household Accessories, lingerie, and Gifts. The company has already
established 36 Westside departmental stores (measuring 15,000-30,000 square feet each) in
Ahmedabad, Bangalore, Chennai, Delhi, Gurgaon, Ghaziabad & Noida (to be considered as 1
city), Hyderabad, Indore, Jaipur, Kolkata, Ludhiana, Lucknow, Mumbai, Mysore, Nagpur, Pune,
Rajkot, Surat, Vadodara and Jammu. The company hopes to expand rapidly with similar format
stores that offer a fine balance between style and price retailing.

Trent ventured into the hypermarket business in 2004 with Star Bazaar, providing an ample
assortment of products made available at the lowest prices, aptly exemplifying its ‘Chota
Budget, Lambi Shopping’ motto. At present Star Bazaar has 4 stores in 3 cities located in
Ahmedabad, Mumbai and Bangalore. This store offers customers an eclectic array of products
that include staple foods, beverages, health and beauty products, vegetables, fruits, dairy

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products, consumer electronics and household items at the most affordable prices. This story
began circa 1998 when The Tatas acquired Littlewoods – a London based retail chain. This
acquisition was followed by the establishment of Trent Ltd (a Tata enterprise that presently
operates Westside). Littlewoods was subsequently renamed Westside.

In a rapidly evolving retail scenario, Westside has carved a niche for its brand of merchandise
creating a loyal following. Currently, the company has 36 Westside stores measuring 15,000-
30,000 square feet each across 20 cities. With a variety of designs and styles, everything at
Westside is exclusively designed and the merchandise ranges from stylized clothes, footwear
and accessories for men, women and children to well-co-coordinated table linens, artifacts,
home accessories and furnishings. Well-designed interiors, sprawling space, prime locations
and coffee shops enhance the customers’ shopping experience.

SWOT OF WESTSIDE:

Strengths
Growing at the faster pace
Brand name of TATA’s.
Good customer base.
Apparels are cheaper
Attractive promotional schemes
and heavy discounts
Quality and branded stuff only
Location advantage
Weakness
Not much product range for
middle class
Facing problems due to political
environment
Need help in taking over
properties and real estate
Need some concessions from labor
laws
Lack of differentiation
Poor inventory turns and stock
availability

Opportunities Threats
Huge untapped market Competition from organized retail
Rising disposable income players
Urbanization Competition from local retailers.

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Comparison between Shoppers stop and Westside in Garuda mall

The following comparison on shoppers stop and Westside is base on personal perception after
having a direct shopping experience in both the retail chains. The following table outlays a few
similarities and dissimilarities between the two.

Westside Shoppers’ Stop

Retail format Departmental departmental
Location Ground, first and second Ground and first floor
floor
Segment Middle class to upper middle Upper middle class to upper
class class
Target Kids, women and men Kids, men and women
Positioning Complete shopping Quality at affordable prices
experience
Pricing Medium Medium to high
Ambience Bright and trendy Elite and sober
Fragrance Fresh Musky
Retail layout Free form, boutique type Boutique type

The similarities being that both retail formats started as departmental stores with back up
support. The retail chains operate across India and majorly focus on apparel rather than food or
eatable items.

Both the retail chain their own in private label brands but Westside is more into promoting and
selling its own brand whereas shoppers stop as lot of other brands apart from its own private
one.

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The above layout shows the position of shoppers stop and Westside in garuda mall, Bangalore

Source: www.garudamall.net

Retail layout:
These are the general merchandise retailers offering various kinds of quality products and
services. A department store is a retail establishment which specializes in satisfying a wide
range of the consumer's personal and residential durable goods product needs; and at the
same time offering the consumer a choice multiple merchandise lines, at variable price points,
in all product categories. Department stores usually sell products including apparel, furniture,
home appliances, electronics, and additionally select other lines of products such as paint,
hardware, toiletries, cosmetics, photographic equipment, jewelry, toys, and sporting goods.
Certain department stores are further classified as discount department stores. Department
stores are usually part of a retail chain of many stores situated around a country or several
countries.

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The retail layout of Westside is free form layout wherein the fixtures and the aisles are
arranged asymmetrically.

Merchandise in clustered like the accessories and the women section are clubbed together for
ease of shopping

There are two main divisions

Products – household items, gifts etc

Apparel – kids wear, women wear, men’s wear etc

Whereas in shoppers stop it’s more organized and arranged. It’s not free form but every
category is departmentalized like men formal wear has different section and casual wear is
different.

Products: As mentioned before the product quality in shoppers stop is higher than Westside.
The variety and assortment is pretty good in shoppers stop. The range of products available is
too good be it apparel or home furnishing or accessories and that’s customers drive in
especially to shoppers stop and hence it has been able to succeed in standalone stores whereas
Westside usually is in a mall.

Private Brands

SHOPPERS STOP WESTSIDE

STOP 2F4U
LIFE SRC
KASHISH GIA
ELLIZA DONATEIN URBAN ANGEL
HAUTE CURRY INTIMA
I JEANS WEAR LEE
INSENSE DAVID JONES
MARIO ZEGNOTI ASCOT
ACROPOLIS BLACKBERRY
INDI-VISUAL SPYKAR
PROVOGUE

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Floor Space Analysis:

To irrigate the space better Westside have the entrance on the ground floor and exit on the
first floor. In case of visual merchandising all the category of clothes of all sizes and varieties are
displayed and hence the consumption of space for shelves is reduced. And it is convenient for
customers to choose and for the attendants to support buying. The exit from parking opens at
Ground floor. Hence slightly upper class people pass through ground floor, so costly items like
Jewelry, Watches and Perfumes. They people may buy those things as they passes from that
way and have a look at them. In watches, good brands like Tissot, Rolex, Tag Heur, Espirit, Titan
Fast track etc. are available. Whereas in case of perfumes, famous brands such as Nina Rici,
Tommy Hilfiger, Thierry Mugler, Calvin Klein etc. are kept for the upper class people.

Shoppers stop’s layout usually on a single floor but very spacious. But in garuda there are 3
floors. There is clubbing of similar products like hand bags are kept near women apparel.
Menes wear is in the ground floor because men have a tendency to move far and shop. To start
with shoppers stop is filled with accessories and branded watches, perfumes.

STORE EXTERIORS

Marquee- Posters of store are put on all the four sides of the store. Focus lights are put all over
the four sides of the store that makes the store brightly shining at night. Large Westside
banners are put which are visible from very far distance also. Various brand advertisements can
be seen on the walls and on ground.

Entrance- Promotional schemes and various discount offer advertisements are there at the
entrance. Store layout is described at the entrance for the convenience of customers. Bag or
any other good can’t be brought inside the store and hence bag preserving counters are put up
near the entrance to keep public baggage.

Window display- Instead of walls, glasses or window panes are used in the exteriors to display
the merchandise. Various brands like Pepe London, Provogue etc. have displayed their
merchandise from their latest fashion range to attract more and more customers.

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Shoppers stop exteriors are always elegant and chic. It gives a look of the elegant elite class.
The buildings are white to stress upon their logo which is in black. It’s not transparent like in
Westside.

STORE INTERIORS

Lighting- Stores are very brightly lit from inside and CFL tubes are put all over the store. Lights
are focused on clothes in Westside whereas in shoppers stop every category has different
lighting with different intensity like the women ethnic wear is too bright. The accessory section
is also well lit.

Color- Wall color is cream so that light can be reflected easily and visibility is good in store.
Paint has a luster in itself i.e. paint is having mirror finish so that light gets reflected and clothes
and other stuff are clearly visible.

Visual communication- The signage and graphics are put all over the place to promote various
brands. Promotional schemes are displayed by posters hanging over the various product
ranges. The brand names are clearly mentioned on boards. Also directional signage are there
showing the way to washrooms, drinking water, exit etc. Category signage’s, Point of Sale (POS)
signages and departmental signage are present in many numbers.

In shoppers stop directional signage is not that effective and customers tend to get lost and
require aid from the sales people. Being a huge store it should have directions everywhere for
billing and exit.

Continuous announcement of schemes are done in between this music playing to draw the
attention of customers and lure them for impulse buying.

Security- Security of the store is pretty good. Cc TV’s are put all over the store to keep check on
notorious customers. Infrared detectors are put at the entrance and exit which alerts guards.

Escalators- they are put one at each floor for going down and going up at a normal speed that
makes shopping convenient.

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LOYALTY PROGRAMS:

Shoppers stop pioneered India’s first retail loyalty program - “First Citizens”. The First Citizens
base grew from 781,000 to 1,013,000 over customers in this year.

The First Citizen program has 3 tiers - Classic Moments (entry level), Silver Edge and Golden
Glow. Members fall into the various tiers on the basis of their spends with the company.
First Citizens also earn differential reward basis on their current tier of membership. First
Citizens receive:
• Reward points on all their spends. Reward points can be redeemed for a wide variety of
merchandise at Shoppers Stop.
• Exclusive schemes, benefits and promotions.
• Extended and exclusive shopping hours - especially during the festive season
• Invitations to exclusive events - both in-store as well as those organized outside the stores.
• Home delivery of altered merchandise.
• Exclusive First Citizens lounge at select stores to relax after hectic shopping.

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Westside has the following

Club west card program

An assured return-and-exchange policy reinforces customer confidence in the chain.

Another winning Westside idea is Club West, a customer loyalty program launched in May
2001. The 30,000-plus members of this club get rebates at restaurants and on holiday
packages from the Taj Group of Hotels, home delivery of alterations, and best of all, special
shopping hours on the first day of any discount sales event organized by the chain.

SERVICES:

Prepurchase services include accepting telephone & mail orders, advertising, window &
interior display, fitting rooms, fashion shows. It provides post purchase service including
shipping & delivery, gift wrapping, adjustments & returns, alteration & tailoring It also
provides ancillary services including general information, check cashing, parking, restaurants,
repairs, interior decorating, credit etc.

Shoppers stop has a separate exchange counter which is not properly visible which is done
purposefully to hide it from the normal customers. The billing counter and the waiting line
model in Westside are comparatively slower than in shoppers stop. Hence though being two
popular retail chains there are many aspects in which they differ. The difference is basically
because their targets are different though the format is the same.

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REFERENCES:

http://corporate.shoppersstop.com/pdf/annual_reports/Annualreport2006-2007.pdf

www.scribd.com

www.wikipedia.com

www.garudamall.net

www.mycitybuddy.com

www.sebi.gov.in

www.reviewstream.com

www.retailmantra.com

www.icmr.org

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