Shopper's Stop Limited - Securities and Exchange Board of India

Modern Retailing Formats
Format Definition Value position Indian examples
Supermarket /
Convenience
stores
Food and household products
Department Stores
Multiple product categories, usually lifestyle driven
with apparel and accessories predominating
Hypermarkets /
Discount stores
Large stores in big box format, with volume based
discounted prices
Specialty Stores /
Extensive range of products under a single category
Category Killers
Department stores
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Convenience Nilgiris, Foodworld
Service and choice Shoppers’ Stop, Lifestyle,
Westside, Pantaloon
Price and choice Big Bazaar, Giant
Service Tanishq, Vijay Sales,
Viveks, Nallis, Bata
These large stores retail primarily non-food items such as apparel, footwear, accessories, cosmetics and
household products. They stock multiple brands across product categories, though some of them focus
on their own store label (on the lines of Marks & Spencer’s and St. Michael). These stores are found on
high streets and as anchors of shopping malls.
Several local department store chains have opened shop in India in the past few years. The convenience
factor coupled with the aspirational perception of shopping in a department store has contributed to their
growth.
The larger chains of department stores (namely Shoppers’ Stop, Westside, Pantaloons’ and Lifestyle)
have presence in the metros and mini metros.
Apparel dominates department stores sales in India
Apparel accounted for a significant part of the sales of department stores . However, non apparel lifestyle
products such as cosmetics & perfumes, writing instruments, sunglasses, watches, fine jewelry, mobile
phones, digital cameras and leather accessories have seen a higher growth in recent years. Spending on
the non-apparel category has a direct correlation with increase in disposable income within the
‘consuming’ and ‘rich’ classes.
Non-apparel growth is likely to drive sales for department stores
KSA Technopak has identified key & large categories that are underdeveloped and under exploited as far
as organized retail is concerned. The table below states the same:
Under exploited categories in organized retail in India
Categories Rs bn
Consumer Durables, IT & Electronics, Communication 450
Furniture & Furnishings 300
Jewellery & Accessories 450
Footwear 65
Gifts and Handicrafts 60
Source: KSA Technopak estimates for 2004-5
These categories are likely to drive the growth of organized retail. Lifestyle products like watches, fine
jewellery, mobile phones and digital cameras, soft furnishings, leather accessories feature as major
components (by value) within the categories mentioned above and are important components of the
growth strategy for department stores
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