A look at how Shoppers Stop has adapted itself over the years to stay relevant to the changing trends, and consumers
New Delhi: Founded by K Raheja Group, in 1991, Shoppers Stop revolutionized the way Indians shopped by introducing them to the glamourous experience of modern retail, complete with valet parking and a loyalty programme for privileged customers.
The first store at Andheri, Mumbai opened with menswear, and in no time, turned out to be ‘everything- under-one- roof’ format with womenwear, kidswear, apparel, gifts, accessories, watches, artificial jewellery, handbags, fragrances, footwear, home furnishing, beauty and décor products pan India.
The Target Audience
– Target consumers are upper middle class and upper middle class
– Customer’s profile age covers all age groups
– Segmented their respective markets in terms of age and sex (clothing for men, women and kids)
– Segmenting by income and expenditure patterns
– Also popular amongst the non- resident Indians
Driving Force
Some of the driving factors behind its success are:
– Strong loyalty base
– Superior brand assortment of nearly 400+ Indian and international brands
– Exclusive brand partnerships
– Unparalleled customer service
– Strong focus on building iconic private brands
Brand Bouquet
Shoppers Stop store along with the website, Shoppersstop.com, offers over 400 international and national brands across different categories in both men and women section. Some of the exclusive brand partnerships for Shoppers Stop were in the form of Desigual, Wrogn, RS By Rocky Star, Femina Flaunt, Love Genration.
While partner brands help increase choice for customers, private labels are an extremely important pillar of the brand’s strategy.
Private Brands Showcase
For the quarter ending on 31 March 2023, private brands sales grew by 35%, and volume grew by 28%. Private brands contributed Rs. 723 crore (70% Y-o-Y growth) or 14% to the company’s total annual revenue.
Currently, Shoppers Stop offers 11 private labels at its stores. Some of the key brands include:
STOP: This is one of Shoppers Stop’s main private label brands, offering a range of contemporary apparel and accessories for men, women, and children.
Haute Curry: This brand focuses on ethnic and fusion wear for women, including sarees, kurtas, and other Indian-inspired clothing.
Life: Life by Shoppers Stop oȮ ers a variety of lifestyle products, including home furnishings, décor items, and personal care products.
Vettorio Fratini: The brand primarily offers formal and semi-formal clothing for men, including shirts, trousers, and suits.
Elliza Donatein: A brand for women’s western wear, offering trendy and fashionable clothing options.
Kashish: Kashish is known for its festive and occasion wear collection for women, including a range of traditional and contemporary outfits.
Rocky Star: Created in collaboration with designer Rocky Star, this brand offers fashion-forward clothing and accessories.
Desi Belle: A brand aimed at younger women, offering a collection of stylish and modern ethnic wear.
For the quarter ending December 2022 (FY 2022-2023), STOP was the highest apparel grossing brand. While Fratini grew by 48%, Men’s Indian wear brand Bandeya grew up by 62%.
First Citizen Loyalty Programme
Running for over three decades, Shoppers Stop’s loyalty programme is one of the country’s longest running loyalty offering. As per Shoppers Stop’s annual report for FY2023, the programme had 9 million members, out of which, 0.24 million members were added in FY 2022- 2023.
“With over 9 millionloyal members, First CitizenMembers now contribute 75% ofour sales,” said the company in the annual report.
As per a BSE filing, First Citizen Members contributed 77% of its oȸ ine sales and 38% of online sales.
Shoppers Stop App
Shoppers Stop launched an e-store with delivery across major cities in India in 2008, followed by the launch of the app in 2016. In FY 2022-2023, there were 3.1 million app downloads as per the annual report.
The app also offers ‘First Citizen Loyalty program for customers. Over the years, Shoppers Stop has also remodeled itself into a multichannel retailer – which means all the merchandise in every category the company sells in its stores is also visible real-time on the company’s website and on its mobile phone app.
Store Design Format
Ground floor: Accessories, beauty, hand bags, perfumes and shoes
First floor: Women sections
Second floor: Men section
Omnichannel
Shoppers Stop has implemented Jarvis to become a full-ȷ edged omnichannel player. As a result of the implementation, the brand reported the following benefits:
– Buying and Merchandising have clarity on store stocks.
– Integrated Supply Chain Management KPIs of Omni Fulfilment like Order-to- Ship, Ship-to-Delivery and Order- to-Deliver by integrating with ShipDelight.
– Enabled Operations to track NPS(Voice of Customer) and its ageing of open customer issues resulting in quick turnaround on key customer issues.
– Shoppers Stop Stores now have full visibility on all their Primary KPIs – Customer Entry, Conversion, No. of Bill and IPT.
Supply Chain is an integral part of Shoppers Stop’s omnichannel strategy, responsible for the last-mile deliveries to customers for online orders received on all platforms.
“We have made significant improvements in the Order to Delivery turnaround time, reducing it from 3.8 days to 3 days, and the overall Order-to-Deliver TAT (turnaround time) for all channels, from 4.6 days to 3.9 days. Our implementation of the allocation logic has improved the overall Intra zone movement from 25% to 54%, resulting in a significant improvement in the Order-to-Delivery TAT,” the company said in the annual report.
“We have laid our focus on inventory management and express delivery, including same-day delivery till12 noon, leveraging our extensive network,” the company said in its report.
Shoppers Stop Stores
The state with the maximum number of Shoppers Stop locations in India is Maharashtra, with 32 stores, which is about 19% of all Shoppers Stop stores in India,followed by Uttar Pradesh 20, with Karnataka and Delhi having 16 and 12 stores respectively.
In South India, Tamil Nadu and Telangana have 10 stores each, and West Bengal has 11 stores. There are 14 (9 states and 5 territories) without a Shoppers Stop store in India with Bihar, Himachal Pradesh, Arunachal Pradesh and Sikkim being the major cities.
