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

4. Introducing new brands and developing private labels to offer a better depth in each category
5. Increasing our First Citizen base
6. Utilising economies of scale as we grow in size and expand our reach
7. Enhancing our operational efficiencies
8. Enhancing our human capital
Increasing our penetration in existing cities and expanding our reach across the country
Increasing our penetration in existing cities with a larger number of stores, increasingly of larger size, will
enable us to penetrate into new catchment areas within these cities and optimize our infrastructure.
Enhancing our reach to cover additional cities amongst the top 21 cities of the country, will enable us to
reach out to a larger population and become a preferred shopping destination for them.
This will help us provide a platform to domestic and international brands wanting to reach out to domestic
consumers with the same profile as our customers.
Furthering Shoppers’ Stop as an experiential retail brand through differential service and unique
national and international promotions
We are continuously inducting and training our CCAs to deliver a differential service, which we measure
and improve through our customer satisfaction studies done through CSMM Walker. We continue to
focus on unique events and promotions to reinforce the Shoppers’ Stop experience and our brand image
amongst our customers to become a destination of choice for them.
Enhancing our merchandise width by adding product categories
Consumers tastes are shifting and the propensity to spend on new categories of merchandise like
mobiles, Personal Data Assistants, digital cameras, writing instruments, designer clothing, etc, is
increasing along with needs for new services.
Our focus will be to add on such new categories in our stores along with developing existing categories to
increase our share of the spend of not only existing customers, but also acquire new customers.
Introducing new brands and developing private labels to offer a better depth in each
category
We continuously focus on enhancing the depth and width of our merchandise. Our private label and
private brands initiative is part of such focus and offers us a differentiating factor as compared to
competition at the same time helping us enhance margins.
We have a tie up with Austin Reed (UK) wherein we are their exclusive licensee for India for men’s
outerwear. We continue to evaluate such opportunities for tie ups with national and international brands,
which can be introduced in India through our stores. We may, in the future, also offer these brands to the
customer through independent chain of stores that we may promote, should the market opportunity justify
the setting up of the same.
Increasing our First Citizen base to enhance our base of loyal customers
A higher base of First Citizens exposed to the Shoppers’ Stop experience, would help us to build
customer loyalty . We believe ,our new business intelligence software (called Business Objects) will help
us understand the customer at an individual level, which may help in making more profitable sales to
them, as well as meeting their needs in a focused manner.
We believe with the addition of new stores and initiatives at our existing stores, we will increase the base
of First Citizens. A higher base of loyal customers would attract various brands to join hands with us and
use our stores to reach out to these customers.
Utilising economies of scale as we grow in size and expand our reach
We believe that our existing corporate infrastructure and software systems have been designed for a
higher scale of operations than our current size, and can help us with our grow plans with out the need to
significantly increase costs.
We have in place our core distribution and logistics infrastructure, which can handle larger business
volumes at marginal addition to costs. Higher business volumes will also improve our negotiating powers
and help us get further economies of scale in our buying with opportunities of incremental margins.
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