Shoppers Stop Ltd

Shoppers Stop Ltd

Shoppers Stop Limited is engaged in the business of retailing a variety of household and consumer products through departmental stores. At 31 March 2019 the company operated through 83 such departmental stores located in different cities of India. An Indian retail sector major Shoppers Stop Limited (SS) opened its door in the year 1991 the foundation was made by K Raheja Corp and it was incorporated on 16th June 1997 as a private limited company. It started operations with the first store in suburban Mumbai. Shopper's Stop is a household name known for its superior quality products services and above all for providing a complete shopping experience. It provides retail range of branded and own label apparel footwear perfumes cosmetics jewellery leather products and accessories home products books music and toys operates in the cities of Mumbai Delhi Kolkata Chennai Bangalore Hyderabad Pune Jaipur and Gurgaon. The first store was opened in the year 1991 at Andheri a suburb in Mumbai only with Menswear. Ladieswear was introduced in the year 1992. After a year the company added Children & non-apparels to its list in 1993. Loyalty Program titled First Citizen was launched in the year 1994 and in 1995; the company opened the second store in Bangalore. The status of the company was changed to deem public limited company in December of the same incorporation year 1997. SS opened its third store in Hyderabad during the year 1998 and implemented JDA Retail ERP (a global leader in retail ERP packages) in the year 1999. Also during the same year of 1999 the company's fourth & fifth stores in Jaipur & Delhi were opened. During the year 2000 the company opened its sixth & seventh store at Chennai & Chembur Mumbai and also in the same year 2000 SS had acquired Crossword India's leading retail book chain. As on 31 March 2019 the Company has five subsidiaries.The eight & ninth store in Pune & Bandra and tenth store in Kandivli Mumbai were opened by the company in 2001 and 2002 respectively. SS's status was further converted to a full-fledged public limited company on 6th October 2003. The eleventh twelfth & thirteenth store in Mulund (Mumbai) Gurgaon and Kolkata were unlocked by the company in the 2003 itself. During the year 2004 SS had opened its fourteen fifteen & sixteenth store in Malad - Mumbai Kolkata & Bangalore. In 2005 SS had opened its seventeen eighteen nineteen & twentieth store in Pune Juhu - Mumbai Bangalore & Ghaziabad. Also in the same year of 2005 the company had launched M.A.C & Homestop a home store. Mothercare in India and F & B outlets Brio & Desi Cafe were launched by the company during the period of 2006. SS made its release of twenty first (Mumbai) and twenty second store in Lucknow in the identical year of 2006 and also acquired 45% of Timezone India. The Company had opened its 22nd Store at Noida in May 2007. During the same year 2007 the company had signed Joint Venture (JV) (50:50) with the Nuance Group for Airport Retailing and also inked the Memorandum of Understanding (MoU) with the Home Retail Group of UK to enter into a franchise arrangement for the Argos formats of catalogue & internet retailing. In March 2008 SS kicks its operation Kolkata aggregating the 24 shops. The Company honored with Emerging Market Retailer of the Year 2008 in April of the year 2008. In same April of the same year 2008 SS had unveiled its new logo and introduced the new expression of the brand. SS bagged Department Store of the Year award in November of the year 2008 for its reputation in the industry.During the year 2016 the rights of 163040500 7% Cumulative Redeemable Preference Shares (CRPS) held by Shoppers Stop in its subsidiary Hypercity Retail (India) Ltd were varied to make them Compulsorily Convertible Preference Shares (CCPS) with the conversion ratio of 5:1 i.e. 5 CCPS of Rs.10/- each were converted into 1 equity share of Rs.10/- each. Accordingly on 15 March 2016 Shoppers Stop was allotted 32608100 equity shares of Rs.10/- each.Further the terms of 131070000 7% Compulsorily Convertible Preference Shares of Rs.10/- each (CCPS) held by Shoppers Stop in Hypercity were varied and converted into equity shares on 15 March 2016 instead of 31 August 2017. The company was allotted 26214000 equity shares of Rs.10/- each.During FY 2016 Shoppers Stop advertised its exclusive brands specifically haute curry and life through a series of press advertisements featuring the trendy designs from the latest collections. The Company had category-based promotions like the SKD Exchange Fest Back to College Suits & Jackets Fest in association with the NGO partner Akshaya Patra to name a few. These festivals provided offers across all brands available in the store for the particular category. The company shifted its Registered Office to Umang Tower 5th Floor Mindspace Off. Link Road Malad (West) Mumbai - 400 064 with effect from 17 April 2017. During FY 2018 in terms of the Share Purchase Agreement executed with Future Retail Limited and approval accorded by the members through postal ballot on 13 November 2017 Shoppers Stop disposed of 77158778 equity shares of Rs. 10/- each constituting 51.09% of the share capital of Hypercity Retail (India) Ltd.; its material subsidiary to Future Retail Limited on 30 November 2017. Accordingly Hypercity ceases to be subsidiary of the Company. In turn Shoppers Stop was allotted 4756823 equity shares of Rs. 2/- each at an issue price of Rs. 537/- per equity share by Future Retail Limited and received cash consideration in terms of the aforesaid Share Purchase Agreement. These equity shares are locked in upto 28 December 2018.The Nuance Group AG Switzerland and Shoppers Stop had formed a Joint Venture called Nuance Group (India) Pvt. Ltd. (NGIPL) to operate the duty free stores at international airports in India. During the year under review Shoppers Stop has disposed off its 40% shareholding in NGIPL to The Nuance Group AG Switzerland at a consideration of Rs. 600 lacs on 6 October 2017. With the disposal of this shareholding the Shareholders Agreement executed with them stands terminated and accordingly NGIPL ceases to be an associate company. Further Shoppers Stop also disposed of 500 equity shares of Rs. 10 each of Nuance Group Fashion & Luxury Duty Free Pvt. Ltd. at its face value.Timezone Entertainment Pvt. Ltd (TEPL) is engaged in the business of operating Family Entertainment Centres (FEC) under the Timezone brand. During the year under review Shoppers Stop disposed of its 48.42% shareholding in TEPL to Timezone West Asia Pte.Ltd at a consideration of Rs. 2270 lacs on 15 February 2018. With the disposal of this shareholding the joint venture agreement executed in this regard stands terminated and accordingly TEPL ceases to be an associate company of the company. Shoppers Stop allotted 4395925 equity shares of Rs. 5/- each at a price of Rs. 407.78/- per equity share aggregating to Rs 17925.70 lacs to Amazon.com NV Investment Holdings LLC Foreign Portfolio Investor on private placement basis on 12 January 2018.During the year 2019 the Company opened 2 departmental stores i.e. one each at Noida and Nasik taking its chain of stores to 83 stores (including 5 airport stores) 12 HomeStop stores and 115 stores under various beauty formats under its operations.