Slide 1: Shoppers Stop - Exchange filing letter
SHOPPERS STOP SEC/076/2018-19 March 18, 2019 SSE Limited National Stock Exchange of India Ltd . Mumbai Samachar Marg, Exchange Plaza, Fort, Mumbai- 400 001. Sandra-Kurla Complex, Sandra (East), Mumbai- 400 051. Stock Code : 532638 SHOPERSTOP Dear Sirs , We refer to our letter SEC/074/2018-19 dated M
Slide 2: 27 Years of Customer Delight
27 YEARS OF CUSTOMER DELIGHT 1
Slide 3: Our Genesis
Our Genesis • Vision : To be an inspirational and trusted brand, transforming customers' lives through fashion & delightful shopping experience every time. • We are not here to sell, we want our customers to experience the moments of personal transformation they experience in our aisles. • We are a
Slide 4: Our Customers
Our Customers • Our core customers are Mid-High Income families and Young Professionals. • We also specifically target millennial consumers via Social Media and our Website. • These young millennials are key Purchase Influencers for Parents and Family. 3
Slide 5: Who is our customer?
Who is our customer? Primary target for Omnichannel Primary target for Store 4
Slide 6: The Way We Created Retail Legacy
1991 1st Store in India 1994 India’s Largest Retail Loyalty Program First Citizen The Way We Created 2000 Acquired Crossword Bookstores Retail Legacy 2005 • Listed on BSE & NSE with the IPO oversubscription of 17.25 times • Launched HomeStop • Launched the first mono brand M.A.C store and partnered
Slide 7: The Way We Dominate
83 74 DEPARTMENT BEAUT Y STORES STORES +20,000 CUSTOMER CARE ASSOCIATES The Way We Dominate +40 million WALK-INS PER YEAR 4.2 million 38 SQUARE FEET AREA CITIES +13 million USD CASH SURPLUS A s o f D e c e m b e r 31 , 2 01 8 6
Slide 8: Crossword and HomeStop
CROSSWORD India’s lar gest lifestyle bookstore chain spread over 1 lac sq.f t acr oss 34 cities 87 Books, Stationary Merchandise Music & Gadgets STORES HOMESTOP Premium Home Concept Store 12 STORES Décor, Kitchen Bed & Bath 6 7
Slide 9: The Way We Digitize
The Way We The First To Go Digitize Omni +11 million +60 million VISITS PER YEAR ON SITE & APP +5 million +128k MOBILE APP DOWNLOADS +25,000 +25k PIN CODE COVERAGE +50 +160k OMNI READY S TORES 8
Slide 10: The Way We Lead
The Way We Lead Karunakaran Anupam Saxena Mohanasundaram President – Beauty Chief Financial Officer Uma Talreja Devadas Chittozhi Chief of Marketing & Chief Supply Chain Officer Customer Officer Amitabh Suri Anil Shankar President – International & Chief Technology Officer Private Brands BVM Rao Man
Slide 11: The Way We Show Our Loyalty To Customers
+ 5.9 million F I R S T C I T I Z EN LOYALT Y The Way We Show PROGRAMME MEMBERS Our Loyalty To + 77% Customers CONTRIBUTION TO C O M PA N Y ’ S S A L E S — First Citizen provides rich insights into customer + 87% behaviors, habits and preferences with over 25 years of recorded transactions — Recogni
Slide 12: The Way We Serve
The Way We Serve Exclusive Trial Rooms and Billings Personal Shopper @ Home Invest 10,000+ hours every year in training 250+ Personal Shoppers contribute to 14 % of our sales 11
Slide 13: The Way We Care
The Way We Care Inclusion Sustainable Women for Women Partnership with TRRAIN for Solar Energy Panels, Rainwater Women form 28% of our workforce employment of differently abled Harvesting and LED Lighting across stores - Reduced 28.26 37% in mid to senior leadership Committed to hire 4% of lacs unit
Slide 14: 4 Strategic Pillars
4 Strategic Pillars I. First Citizen III. Acceleration of Program Private Brands Customer Product Pillars Pillars II. Personal IV. Beauty Shopper Program Segment People and Capability Technology Omnichannel Building Transformation Underpinning Initiatives 13
Slide 15: All the Parameters are on Rolling LTL
I.Customer Parameters CUSTOMER ENTRY TREND (LTL) CUSTOMER VISITS(in Millions) (LTL) 4.00% 44.00 43.1 43.2 2.00% 43.00 1.50% 0.00% 41.8 42.1 42.00 -2.00% 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 - Projected 41.00 40.5 -4.00% -6.90% Mid negative 40.00 39.8 -6.00% -8.00% -6.70% 39.00 -7.30% -10.
Slide 16: Marketing – Customer focused Actions and Initiatives
Marketing – Customer focused Actions and Initiatives 1 Strategic 3 Leadership Areas • Brand Relaunch : New proposition launch by AW 19 • Marquee event with new brand announcement • Beauty Marketing Program • Youtube and Instagram Content Strategy • Private Brands “brand” redesign : Launch with retai
Slide 17: First Citizen Program – Actions and Initiatives
First Citizen Program – Actions and Initiatives 1 2 Strategic Support Ancillary Programs • Re-Launch of First Citizen Black • Personal Shopper: Member awareness about the program, Drive Leads for the program • Redesign & Relaunch of First Citizen Program with new engagement/experience initiatives •
Slide 18: Key Performance Indicators – First Citizen Program and Marketing
Key Performance Indicators – First Citizen Program • First Citizen Customer Churn : Between In the range of 20% • Repeat Member Sales : +High double digit (20’s range) • Repeat Member ATV/Spends : 3,600 to 3,800 • First Citizen Contribution (Revenue) : 77% as of February and expected to increase fur
Slide 19: Customer Experience – Personal Shoppers
II. Customer Experience – Personal Shoppers Personal Shopper Program 20% 15%-20% 800 14% 15% 600 10.53% 10% 630 to 675 400 516 crs crs 5% 362 crs 200 0% 0 2017-2018 2018-2019(P) 2019-2020(B) Sales % Contribution to Store • Personal Shopper Program launched in September 2016. Current bench strength o
Slide 20: Personal Shopper Program – Actions and Initiatives
Personal Shopper Program – Actions and Initiatives • Quarterly training of Personal Shoppers to keep upskilling on Fashion and Selling techniques • Further more exclusive training programs from our top 10 vendors • Training planned for next year : 9,000+ man-hours • Revamping & upgrading Personal Sh
Slide 21: Private Brands – Yearly Growth Trends
II.Private Brands – Yearly Growth Trends PVT BRAND TREND Aiming for Aggressive 40.0% Double Digit Growth 30.0% 20.0% 15.40% 10.0% 2.50% 0.0% 2015-2016 2016-2017 2017-2018 2018-2019 (YTD - 2019-2020 (B) Dec) -10.0% -2.40% -20.0% -18% -30.0% 20
Slide 22: Private Brands – Key Investments
Private Brands – Key Investments • Disproportionate Investments to re-establish and build the Private label business • Dedicated Leadership Team in place : President Private Brands, Head of Design & Head of sourcing team. Strengthening of design team ongoing • Inhouse Sampling Unit, Design Studio an
Slide 23: Private Brands – Key Actions
Private Brands – Key Actions • Focusing sales on design led merchandise to improve sales densities • Building brand ID’s , category extensions with a clear brand purpose for each brand • Re-establishing broken relationships with Celebrity & Exclusive brands. • Adding more celebrity brands. • Launchi
Slide 24: Beauty (Including ELCA SIS & SA)
II. Beauty (Including ELCA SIS & SA) TREND BEAUTY CONTRIBUTION TO Beauty ELCA SIS ELCA SA BUSINESS 400 348 % Contribution - Total % Contribution in Department Format 350 324 310 19.0% 277 16.5% 17.0% 300 277 17.0% 16.1% 255 234 14.6% 15.0% 250 220 212 15.0% 12.9% 13.5% 200 183 13.0% 142 10.7% 11.1%
Slide 25: Destination for Beauty Category
Destination for Beauty Category • Strengthening of the Leadership Team to establish a dedicated focus on Beauty category • Re-establishing Shoppers Stop as a Premium Beauty department store : • Redesigning 15 stores for a premium look and feel for better customer shopping experience, defending our r
Slide 26: Beauty Pyramid (For Reference)
II. Beauty Pyramid (For Reference) Luxury ARCELIA Luxury Beauty Stores, ELCA brands /ELCA Omnichannel Upgrade 15 current Department Upgraded Shoppers Stop stores to premium look and feel Department Stores and introduce Beauty Hub Existing Department Stores Mid to – Mid High Mix Compact Format Stores
Slide 27: People and Capability Building
II. People and Capability Building Strategy Enablers I. Personal Shopper Program • Support aggressive growth plans • Hiring of additional 55 Personal Shoppers • Training and Certification of Current Personal Shoppers II. Private Brand • Building of Merchandising, Sourcing and Design Team to support
Slide 28: People and Capability Building
II. People and Capability Building Aspiration to be Top 40 Employer* II. Employer: Branding and I. Care & Culture Communication • Improve emotional and physical well • Shoppers Stop YouTube Channel to being score (Care from 90% to 92%). disseminate information *Industry average at 85% • Employer Bra
Slide 29: People and Capability Building
II. People and Capability Building Capability Building Planned Initiatives • Comprehensive Management Development Program for Hi-Pots to create a Succession Pipeline • Associate Opportunity Path (BSG – Certification) • One Degree Learning and Job Enhancement • Leadership Team Integration Workshops •
Slide 30: Customer Centric Technology Transformation
III. Customer Centric Technology Transformation Towards a Data Driven : Digital Company • Digital Core: Sunset outdated technology and implement a new digital core with SAP S4/HANA. Implementation of Core ERP modules by Sep/Oct 2019. • Store Front-end: Upgrade to latest version of POS (Oracle XStore
Slide 31: Technology Transformation
III. Technology Transformation Benefits of SAP ERP and Other Tech Initiatives • Customer Experience : • Better Assortment and Availability (based on channel clustering & size scaling) • Personalization for First Citizens based on 'Customer Lifetime Value' • Technology : • Improved Enterprise System
Slide 32: Omnichannel
Omnichannel Objective • Provide our customers with ONE experience across all touch-points • Drive younger customers to our stores and create a pipeline of future First Citizens Key Initiatives • Unifying First Citizen Experience across touch-points • Make Shoppers Stop relevant for the younger mille
Slide 33: Unifying First Citizen Experience across touch-points
Unifying First Citizen Experience across touch-points Manage entire Fashion, Lifestyle, Single repository of all Reminder for wardrobe – including Beauty Trends – now Shoppers Stop replenish, shopping list non SS purchases (scan with personalized transactions for the next store visit / shoot & add)
Slide 34: Create a pipeline of future First Citizens
Create a pipeline of future First Citizens Make Shoppers Stop relevant for the younger millennials • Maximise organic reach of digital platforms • Introduce new features (visual search, collaborative shopping, shoppable videos) • Provide greater conversation opportunities (live chat, personal shoppe
Slide 35: Differentiate experience for New Visitors & First Citizens
Differentiate experience for New Visitors & First Citizens Communication personalized to user affinities • To extend for off-site (mailers, adverts, notifications) as well as on-site (banners, recommendations) First Citizens • Present a Style & Fashion led story, with latest products being the Hero
Slide 36: Thank You
THANK YOU 35