Page 294 - DMGT551_RETAIL_BUSINESS_ENVIRONMENT

Unit 14: A Review of Retailing: Environment and Operations

 Premium segments had suffered more. Shoppers Stop reported a decline for three Notes
consecutive quarters from December 2008 to June 2009.

 Home retailing, which includes electronics, home building, furnishings, furniture, etc.
witnessed high double-digit decline in same store sales, as consumers postponed their
purchase decisions. Other discretionary items like jewelry, watches and accessories reported
a decline in same store sales during this period.
 Consumers down-traded during the slowdown due to which value segments in food and
grocery as well as fashion recovered faster. Same store sales did not decline and started
improving from March 2009.

 Home, jewellery and premium segments in fashion bottomed out in June 2009 and 27
started recovering from September 2009, a good six months after recovery was visible in
the value segment

Figure 14.3: Shoppers Stop: Some store sales bounce back

Post restructuring, retailers are now planning store additions
Store additions accelerating: Due to the slowdown, various retailers reduced the total number
of stores operated by them to cut losses and improve store viability. The restructuring undertaken
by the retailers is reflected in higher margins and increased store viability in the current scenario
of rising sales growth. The resultant increase in confidence levels is driving up new store
openings:

 Trent has added a total of 15 Westside departmental stores in the last 24 months on a base
of 28 stores. It has added three Star India Bazaar stores, taking the total to seven. They are
planning to add 7-8 Westside and 4-5 Star India Bazaar stores every year.

 Shoppers Stop has added six stores in the last two years and four stores in FY10. It expects
to add 18 stores in the next 2.5 years on a base of 30 stores. It plans to increase the number
of hypermarts from seven to 15 by FY12.
 Aditya Birla Retail operates eight hypermarts under the brand, More Megastore. It plans
to add another 10 hypermarts in the coming 12-15 months.

 Bharti Retail plans to increase the total number of supermarkets from 60 to 125 by FY11
and double its compact hypermart stores, Easy Day Market from 6 to 12.

 Carrefour is close to launching its first cash and carry store of 60,000sf and plans to open 5-
6 more in the current year.
 Amongst specialty retailers, Dominos plans to add 70 stores while Titan Eye+ is looking
at expanding from 75 stores to 200 in two years. Adidas plans to increase the number of
stores from 30 to 100 in the current year.

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