AMITY UNIVERSITY MOHALI, PUNJAB

Study of omni channel retailing-a case study on shoppers stop

Research Project Report
Submitted in partial fulfillment of the requirements for
MASTER OF BUSINESS ADMINISTRATION
By
SIDHANT SHARMA
A25601921010

Batch of 2020-23
Under the supervision of
<PROF-Reetika madan >
<POR>
20 june 2022
 TABLE OF CONTENTS
1. Meaning of omni channel retailing
2. How it is different from multi channel
retailing
3. Challenges of omni channel retailing
4. Shoppers stop
5. About shoppers stop
6. Role of omnichannel retailing in
shoppers stop
7. Growth of shoppers stop
8. Conclusion
MEANING OF OMNI CHANNEL RETAILING
Omnichannel retailing describes a retailer’s efforts to provide a consistent, coordinated customer
experience across all possible customer channels, using consistent, universal data .
The present retailers progressively perceive that new media, including web, cell phones, and
virtual entertainment, have provided clients with a wide exhibit of new channels through
which they research items, make buys, and give criticism. Omnichannel retailing portrays the
manners by which these organizations endeavor to contain and use these various channels to
further develop the client relationship, make more viable effort, and increment portion of
wallet

HOW is omnichannel retailing different from multi-channel

retailing?
Omnichannel retailing is like multi-channel retailing yet for the most part involves a more
extensive vision of the open door. Though multi-channel retailing is tied in with expanding
the quantity of upheld channels, omnichannel retailing centers around information and
foundation status to convey a comprehensive perspective on the client relationship on any
channel whenever.

Challenges of omni channel retailing

Omnichannel retailing is like multi-channel retailing yet generally includes a greater vision of
the entryway. However multi-direct retailing is connected to growing the amount of
maintained channels, omnichannel retailing bases on data and establishment status to convey
a far reaching viewpoint on the client relationship on any channel at whatever point.
 Shoppers stop
Shoppers Stop is an Indian department store chain, owned by the K Raheja Corp. There are
86 stores across 40 cities in India, with clothing, accessories, handbags, shoes, jewellery,
fragrances, cosmetics, health and beauty products, home furnishing, and decor products.

About the company

The first store was opened in Andheri, Mumbai on 27th Oct 1991.[3]
The company opened its 22nd store at Lucknow in 2006.[4] In 2007, it entered into partnership
with Nuance Group AG, and opened stores in Mumbai T1 and Bengaluru Airports.[5]
An e-store with delivery across major cities in India was launched in 2008, with a smartphone
app in 2016.[6]
In June 2018, the retail chain underwent a board rejig in which promoter Chandru L Raheja
resigned as the non-executive chairman after having served for over two decades.[7]
Chandru Raheja was succeeded by BS Nagesh.

Customers Stop Limited is taken part occupied with retailing different family and shopper
items through departmental stores. At 31 March 2019 the organization worked through 83
such departmental stores situated in various urban areas of India. An Indian retail area
significant Shoppers Stop Limited (SS) opened its entryway in the year 1991 the

establishment was made by K Raheja Corp and it was consolidated on sixteenth June 1997
as a confidential restricted organization. It began activities with the principal store in rural
Mumbai. Customer's Stop is a commonly recognized name known for its prevalent quality

items administrations or more for giving a total shopping experience. It gives retail scope of
marked and own name clothing footwear fragrances beauty care products adornments

calfskin items and embellishments home items books music and toys works in the urban
areas of Mumbai Delhi Kolkata Chennai Bangalore Hyderabad Pune Jaipur and Gurgaon.
The principal store was opened in the year 1991 at Andheri a suburb in Mumbai just with
Menswear. Ladieswear was presented in the year 1992. Following a year the organization

added Children and non-clothes to its rundown in 1993. Dedication Program named First
Citizen was sent off in the year 1994 and in 1995; the organization opened the second store in
Bangalore. The situation with the organization was changed to consider public restricted
organization in December of a similar joining year 1997. SS opened its third store in
Hyderabad during the year 1998 and carried out JDA Retail ERP (a worldwide forerunner in
retail ERP bundles) in the year 1999. Likewise during that very year of 1999 the
organization's fourth and fifth stores in Jaipur and Delhi were opened. During the year 2000

the organization opened its 6th and seventh store at Chennai and Chembur Mumbai and
furthermore around the same time 2000 SS had procured Crossword India's driving retail
book chain. As on 31 March 2019 the Company has five subsidiaries.The eight and ninth

store in Pune and Bandra and tenth store in Kandivli Mumbai were opened by the
organization in 2001 and 2002 separately. SS's status was additionally switched over
completely to an undeniable public restricted organization on sixth October 2003. The 11th

twelfth and thirteenth store in Mulund (Mumbai) Gurgaon and Kolkata were opened by the
organization in the 2003 itself. During the year 2004 SS had opened its fourteen fifteen and

sixteenth store in Malad - Mumbai Kolkata and Bangalore. In 2005 SS had opened its
seventeen eighteen nineteen and twentieth store in Pune Juhu - Mumbai Bangalore and

Ghaziabad. Likewise around the same time of 2005 the organization had sent off M.A.C and

Homestop a home store. Mothercare in India and F and B outlets Brio and Desi Cafe were

sent off by the organization during the time of 2006. SS made its arrival of twenty first
(Mumbai) and twenty second store in Lucknow in the indistinguishable year of 2006 and
furthermore obtained 45% of Timezone India. The Company had opened its 22nd Store at
Noida in May 2007. During that very year 2007 the organization had marked Joint Venture

(JV) (50:50) with the Nuance Group for Airport Retailing and furthermore inked the
Memorandum of Understanding (MoU) with the Home Retail Group of UK to go into an
establishment game plan for the Argos configurations of list and web retailing. In March
2008 SS kicks its activity Kolkata conglomerating the 24 shops. The Company respected with
Emerging Market Retailer of the Year 2008 in April of the year 2008. In same April of that
very year 2008 SS had uncovered its new logo and presented the new articulation of the
brand. SS stowed Department Store of the Year grant in November of the year 2008 for its
standing in the industry. During the year 2016 the rights of 163040500 7% Cumulative
Redeemable Preference Shares (CRPS) held by Shoppers Stop in its auxiliary Hyper city
Retail (India) Ltd were differed to make them Compulsorily Convertible Preference Shares
(CCPS) with the change proportion of 5:1 for example 5 CCPS of Rs.10/ - each were
changed over into 1 value portion of Rs.10/ - each. In like manner on 15 March 2016
Shoppers Stop was allocated 32608100 value portions of Rs.10/ - each. Further the conditions
of 131070000 7% Compulsorily Convertible Preference Shares of Rs.10/ - each (CCPS) held
by Shoppers Stop in hyper city were shifted and changed over into value shares on 15 March
2016 rather than 31 August 2017. The organization was designated 26214000 value portions
of Rs.10/ - each. During FY 2016 Shoppers Stop publicized its elite brands explicitly haute
curry and life through a progression of press commercials highlighting the in vogue plans
from the most recent assortments. The Company had classification based advancements like
the SKD Exchange Fest Back to College Suits and Jackets Fest in relationship with the NGO
accomplice Akshaya Patra to give some examples. These celebrations gave offers across all
brands accessible in the store for the specific classification. The organization moved its
Registered Office to Umang Tower fifth Floor Mindspace Off. Interface Road Malad (West)
Mumbai - 400 064 with impact from 17 April 2017. During FY 2018 as far as the Share
Purchase Agreement executed with Future Retail Limited and endorsement concurred by the
individuals through postal polling form on 13 November 2017 Shoppers Stop discarded
77158778 value portions of Rs. 10/ - each comprising 51.09% of the offer capital of hyper
city Retail (India) Ltd.; its material auxiliary to Future Retail Limited on 30 November 2017.
As needs be hyper city fails to be auxiliary of the Company. Thus Shoppers Stop was
distributed 4756823 value portions of Rs. 2/ - each at an issue cost of Rs. 537/ - per value
share by Future Retail Limited and gotten cash thought as far as the aforementioned Share
Purchase Agreement. These value shares are secured upto 28 December 2018.The Nuance
Group AG Switzerland and Shoppers Stop had shaped a Joint Venture called Nuance Group
(India) Pvt. Ltd. (NGIPL) to work the obligation free stores at global air terminals in India.
During the year under survey Shoppers Stop has arranged off its 40% shareholding in NGIPL
to The Nuance Group AG Switzerland at a thought of Rs. 600 lacs on 6 October 2017. With
the removal of this shareholding the Shareholders Agreement executed with them stands
ended and as needs be NGIPL fails to be a partner organization. Further Shoppers Stop
additionally discarded 500 value portions of Rs. 10 every one of Nuance Group Fashion and
Luxury Duty Free Pvt. Ltd. at its face value.Timezone Entertainment Pvt. Ltd (TEPL) is
taken part occupied with working Family Entertainment Centres (FEC) under the Time zone
brand. During the year under survey Shoppers Stop discarded its 48.42% shareholding in
TEPL to Time zone West Asia Pte.Ltd at a thought of Rs. 2270 lacs on 15 February 2018.
With the removal of this shareholding the joint endeavour arrangement executed in such
manner stands ended and as needs be TEPL quits being a partner organization of the
organization. Customers Stop dispensed 4395925 value portions of Rs. 5/ - each at a cost of
Rs. 407.78/ - per value share collecting to Rs 17925.70 lacs to Amazon.com NV Investment
Holdings LLC Foreign Portfolio Investor on confidential position premise on 12 January
2018.During the year 2019 the Company opened 2 departmental stores for example one each
at Noida and Nasik taking its chain of stores to 83 stores (including 5 airport stores) 12 home
Stop stores and 115 stores under various beauty formats under its operations.

Role of omni channel retailing in shoppers stop

Customers Stop Ltd will proceed with its emphasis on omni-channel methodology even while
searching for a reasonable occupant to fill in the shoes of Rajiv Suri, who might be venturing
down as overseeing chief and CEO, viable August 25, 2020. This was revealed by BS
Nagesh, client care partner, administrator and non-chief head of the organization.
Nagesh, alongside an accomplished 4-part CXO Committee is guaranteeing smooth progress.
The organization is confident of topping off the situation in the following 90 days, Nagesh
said during a telephone call today to examine the 'Hierarchical Changes and Next Steps' at
Shoppers Stop — India's head retailer of design and magnificence brands.
"We have worked for 1 to 1.5 years to design our technique for the following 5 years, and
appropriately we have made ventures. Our undertaking will be to chip away at the system that
is now set up, even after the joining of the new occupant," Nagesh said during the phone call.

Expounding on the omni-channel technique, Nagesh said they have seen much better footing
during the most recent couple of months on their internet based gateway shoppersstop.com,
and online clients can be better off in the event that there is a retail location close by from
where the item can be gotten and conveyed. Along these lines, both blocks and cement and
online would remain forever inseparable.

The 30-year old brand sees a gigantic open door in level 2, level 3 and level 4 urban
communities, where it has concocted a more modest organization of retail space.
Nonetheless, all its current capex plans, including new store openings, are right now required
to be postponed as the organization is in a "power outage period", Nagesh informed.

Shoppers Stop posts 188% growth in Q4 omnichannel sales

India's driving retail organization Shoppers Stop Ltd. has announced quick business
recuperation in Q4 FY21. For the quarter, the organization logged 90% of FY20 deals, the
most grounded recuperation in the last four quarters. The organization detailed Q4 deals at Rs
825 cr, mirroring a 10% YoY decline from FY20 and EBITDA at Rs 10.5 cr versus Rs.16.7
cr misfortune in FY20.

One of the most amazing measurements was the 188% development in omnichannel deals
over the relating quarter of FY20. Confidential Brands volume became by 38%, with the
Beauty classification beating with the beginning of make-up from mid-January. Gross edges
worked on by 189 bps with further developed blend from Private brands. Confidential Brand
developed by 11.5% (volume 38%) and its portion to add up to business expanded by 250
bps," the organization said in its profit proclamation. Working efficiencies additionally
improved with costs being brought down by Rs 43 cr in the quarter, it added.

Customers Stop MD and CEO Venu Nair remarked, "Business recuperation until Mid-March
had been exceptionally reassuring. Nonetheless, with flood in Covid-19 cases, we saw a drop
in footfall coming about into drop in income."

"In spite of the Covid-19 effect, we had solid exhibitions in the entirety of our essential
support points. Our omnichannel deals became by 188% (3X development) and Private
Brands' volume developed by 38%," he expressed. "In particular, on omnichannel, our
fantasy run proceeds. During the quarter, we did the principal period of the update of the
landing page and kept on adding new brands. We likewise further developed our satisfaction
boundaries by changing the designation rationale which further developed the Turnaround
Time. We are putting vigorously in this channel and have started the second period of the
update of our App, with a total overhaul of UI/UX, examination and personalization," Nair
informed.

"Our outcome in changing and redoing Private Brands keep on yielding outcomes. During the
quarter, we sent off execution wear and athleisure brand, ALTLIFE and INSENSE in the
ladies' sleepwear classification. We have altogether further developed our style remainder
pertinent to most recent patterns, other than updating the nature of product. We have worked
on the cost framework. Our clients are perceiving the enhancements that have been made
contribution extraordinary style and quality at reasonable sticker costs. This brought about
38% volume development, by and large deals development of 11.5% and expanded offer to
the business by 250 bps," he said.

The retailer's faithfulness program First Citizens contributed 72% of the income, the
organization said, adding that it added 1,06,000 dependability individuals during the quarter
and as of March 31st, 2021. "As on date, we have 7.8 million confided in Loyal Members. In
our exceptional Annual Membership Program "Dark Card", enrolment became by 172% —
this is a membership administration at Rs. 4,500. We keep on drawing in with our faithful
clients through our own customers' program. During the quarter, the individual customer
program contributed 14.7% (+80 bps)," Nair said.

Taking note of that store extension was conceded because of the Covid-19 effect in FY21,
Nair informed that the organization intends to add 20+ stores across huge and little
configurations in FY22. "The organization is keeping up with adequate money stores to
manage any exigencies in coming quarters. We keep on excess obligation free," he said.

Customers Stop Ltd. works 84 retail chains in 44 Cities, as well as superior home idea stores
(11 Stores), 127 Specialty Beauty stores of M.A.C, Estée Lauder, Bobbi Brown, Clinique,
Smash box, Jo Malone and Arcelia and 23 Airport entryways, possessing an area of 4.5
million sq. ft.

Shoppers Stop to invest more in omni-channel strategy

Multi format retailer Shoppers Stop Ltd will invest an
additional Rs 20 crore over the Rs 40 crore, it has spent till
date, to offer a complete omni-channel experience to its
customers over the next 18 months.
Shoppers Stop Ltd will invest an additional Rs 20 crore over the Rs 40
crore, it has spent till date, to offer a complete omni-channel experience.

In the company's annual report for 2016, Shoppers Stop

chairman Chandru Raheja said, “Shoppers Stop has plans for
investment in technology and operations over the next 18
months.”

“This will help us provide a seamless online and in-store

shopping experience through digital advancements and
initiatives," Raheja said.
The retailer will invest in customer relationship management
(CRM) and warehousing management system to offer
customers a seamless experience across both, online and in-
store.
 The report informed that Shoppers Stop aims to garner 15 per
cent of revenue through ecommerce by 2020, for which it has
initiated a project named ‘Mission 2020'.

Shoppers Stop ties up with SAP to boost

omni-channel strategy

To contribute ₹60 cr throughout the following 3 years

Customers Stop has restricted with hybris programming, a SAP organization and a trade stage
supplier.

The retailer intends to contribute ₹60 crore throughout the following three years in innovation,
production network and ability to fortify its omni-channel play.

Customers Stop said the tie-up will empower it to give a consistent and brought together
shopping experience to clients across its numerous channels, or at least, actual stores, web, social,
TV and commercial centres. Throughout the following three years, Shoppers Stop will stretch out
its omni-channel technique to its gathering organizations HomeStop, Hypercity and Crossword.

By 2020, the organization focuses to accomplish 15% income through advanced touch focuses.

Govind Shrikant, MD, Shoppers Stop, said: "Among the top worldwide retailers, nine out of 10 are
physical players who have advanced into omni-channel elements. In India, Shoppers Stop was one
of the principal retail chains to send off a multi-channel play through our e-store
www.shoppersstop.com. Presently, we are leaving on our omni-channel venture by connecting
our numerous channels to give clients a brought together brand insight. We intend to put roughly
₹60 crore in our omni-channel endeavours."

He added, "As a component of the guide ahead, we will present new elements, for example, 'Snap
and Collect', 'Boat from Store', 'Vast Aisles, and significantly more."

Driving retail chain retailer Shoppers Stop is wagering enthusiastic about an omni-channel retail
system as the piece of technique to develop its business and means to be totally obligation free
toward the finish of this financial.
"We trust that these ways out (divestment) will serve in giving us the sharp vision center expected
to fundamentally increase our center organizations while likewise decisively change our
accounting report and subsequently increment investor esteem. We expect to be totally
obligation free by monetary year 2018-19," Shopper Stop said in yearly report for 2017-18.

It further said: "For the current year, the organization will zero in on reinforcing its web based
business presence to expand on the ventures made throughout recent years to drive more than
100% deals development, and to make consistent encounters across on the web and
disconnected to drive carefully impacted store deals, as well as reception of advanced channels
by store clients and on utilizing its organization with Amazon."

Explaining on its disconnected extension plans, Shoppers Stop said: "We intend to open 4-6 retail
chains and 8-10 excellence stores every year for the following 3 years to arrive at a more
extensive and more extensive impression. Where our actual stores are absent, our web based
shopping webpage will provide clients with the delight of shopping at a solitary snap. Our hearty
interest in omni-channel will go on immovably."

Customers Stop paid off its obligation by Rs 508 crore during the year. Toward the start of the
year 2017-18, the organization had an obligation of Rs 575.90 crore at independent level and Rs
885.10 crore at merged level, which has been decreased to Rs 87.37 crore and Rs 125.34 crore,
individually.

According to the report other than proceeding to put resources into retail front end as well as
back end processes with IT enablement, the organization is putting into innovation ground-
breaking tasks. The organization accepts that ceaseless interest in individuals, cycle and
innovation will drive maintainable and beneficial development for the Company.

As of now, Shopper Stop has 84 stores the nation over (counting six air terminal stores) and 13
Home Stop stores.

Conclusion
The review gives a daily existence stage perspective on customer buying conduct at a

noticeable multi-brand corporate store in India. It grandstands that a customer's buying

conduct and inclinations of purchasing at a multi-brand retail location change according to

her life stage. In understudy life, a customer has more than adequate opportunity to shop with
companions and assess an item's quality, cost and past purchasing experience however has

restricted cash to spend on costly product. The shopper goes to such stores for the most part

during celebrations and gets exceptionally impacted by in-store advancements. At the point

when the customer enter calling, she is confronted with scarcity of time and turns into a more

standard customer at multi-brand retail locations as she can get different

brands under one rooftop and in this way depends on a brand's solidarity for approval of her

buy choice as opposed to assessing item's quality and cost. The impact of in-store

advancements lessens as purchaser gives more weightage to mark now. As the purchaser

turns out to be more full grown and laid out in her calling dealing with additional obligations,

she again attempts to assess quality and cost and depends less on brand strength. The

purchaser again comes additional during celebrations yet increments buys for the end goal of

giving. This perspective on shopper life stage gives one more device to advertisers to upgrade

their contributions for various fragments of customers

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