The Retail IndustryIntroduction Retailing is the final step in the

distribution of merchandise - the last link in the Supply Chain - connecting the bulk producers of commodities to the final consumers. Retailing covers diverse products such as foot apparels, consumer goods, financial services and leisure. In developed country three-fourth of the retail

trade is done by organized sectorHuge retail chains like Wal-Mart, Carr four

Group, Sears, K-Mart, McDonalds, etc. have now replaced the individual small stores

Top Ten Retailers Worldwide

Rank Retailer # of stores sale 2000US$(miln)

1 Wall-Mart Stores (USA) 4178 $180,787

2 Carrefour Group (France) 8130 $61,047

3 The Kroger Co. (USA) 3445 $49,000

4 The Home Depot, Inc. (USA) 1134 $45,738

5 Royal Ahold (Netherlands) 7150 $45,729

6 Metro AG (Germany) 2169 $44,189

7 Kmart Corporation (USA) 2105 $37,028

8 Sears, Roebuck and Co. (USA) 2231 $36,823

9 Albertson's, Inc. (USA) 2512 $36,726

10 Target Corporation (USA) 1307 $36,362

Retailing in India The retail market size around $180 billion Retailing provides jobs to almost 15 percent

of employable Indian adults The Indian retail industry is unorganized The Indian retail industry is fragmented The Indian retail industry has rural biasYoung population with high disposable income

Changing age demographics in India

Exposure to international lifestyles Quality retail space under development in leading urban

centres Rising retail finance and consumer credit has increased

affordability Changing consumer requirements and lifestylesModern retailing formats provide different value

proposition

The Evolution of Indian retail industry

For Indian retailing, things started to change slowly in the 1980s

Bombay Dyeing, Raymond's, S Kumar's and Grasim and later Titan was the first to see the emergence of retail chains

In 1990 retail market got diversified FoodWorld, Subhiksha and Nilgiris in food

and FMCG; Planet M and Music World in music; Crossword and Fountainhead in books

On the growing track, by the end of year 2000 retail industries was estimated 13,000 cr. And till year 2005 was expected around 45,000 cr.

Retailing Formats in India

MallsBranded storesDepartment storesSpecialty stores

Growth of Retail Industry in India

Key factors Experimentation with formatsStore design Emergence of discount storesUnorganized retailing is getting organized The indian consumer: Their earning

capacity and shopping habits are changing

Shoppers’ Stop

HistoryEstablished in October 27, 1991 by the K.

Raheja Corp. group of companyDiversified from Hospitality and Real estate to retail industry progressed from being a single brand shop to becoming a Fashion & Lifestyle store for the family With an immense amount of expertise and

credibility, Shoppers’ Stop has become the highest benchmark for the Indian retail industry

Company Profile Its merchandise ranges across apparel, accessories,

perfumes, cosmetics, home & kitchen products with over 260,000 stock keeping units (SKU`s),

The company derives revenue from private labels which account for 20% and from other brands that contribute 80%.

Shoppers Stop’s first exclusive home dressings outlet was launched in Bangalore

The Company has entered into an Option Agreement with Inorbit Malls and Hypercity Retail (India) Pvt , under the terms of which the Company has an option to acquire up to 51% of the equity share capital of Hypercity Retail (India) Pvt Ltd

In H1FY06, SSL opened four new stores adding 0.2 million square feet to its retail space. It has

signed up 19 new department stores to be opened between FY06-08E

It plans to invest Rs1200mn in the next two years.

Financial Overview

Year-2005/03 (Value in cr.)Capital Employed 182.15Net Working Capital 61.32Current Assets 145.85Current Liabilities 80.53Total Assets/Liabilities 262.3Net Sales 510.34Book Value (Unit Curr) 34.55

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Pantaloon

History / Company profile

Founded in 1987 Pantaloon Retail (India) (PRIL), previously known

as Pantaloon Fashions (India) (PFIL) Manufactures and Markets quality ready-made

garments for men 300 Pantaloon dealers spanning the metro and

class-I cities in the country The company has acquired the trademark and

exclusive licensing rights for apparel brand Norules(US) in India

Over 100 stores across 30 cities in India and employs over 14,000 people

For the financial year ended June 2005, it had a turnover of Rs. 1,073 crore (US$ 242 million) and it is expected to touch Rs 2000 crore (US$ 444 million) by the end of June 2006.

Different brand(Stores) of PantaloonBig Bazaar Central Mall Food Bazaar Fashion Station aLL MeLa E-Zone Star Sitara

Financial overview

Year-2005/03 (Value in cr.)Capital Employed 504.74Net Working Capital 243.01 Current Assets 405.16 Current Liabilities 162.15 Total Assets/Liabilities 666.61 Net Sales 1083.73 Book Value (Unit Curr) 99.33

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Trent

Company ProfileEstablished in 1992 by TATA Group2006 Sales: 3,765,450,000 Currency: Indian RupeesFiscal Year Ends: MarchShare Type: OrdinaryCountry: IndiaMajor Industry: RetailersSub Industry: Miscellaneous RetailersEmployees: 550 Market Capitalization: 12,824,159,807 Total Shares Outstanding: 14,427,811

Financial status

Year-2005/03 (Value in cr.)Capital Employed 217.39 Net Working Capital 41.36 Current Assets 106.82 Current Liabilities 65.46 Total Assets/Liabilities 282.44 Net Sales 234.32 Book Value (Unit Curr) 165.5

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Provogue

History / Company profile Incorporated in 1997 as Acme Clothing Private Limited Work fashion house manufacturing and distributing

apparel for men under the brand Provogue for menAn aggressive advertising and marketing campaign has

enabled Provogue command a superior brand Provogue's proposal to set up 40 small and 21 mega stores

(of 5,000 square feet each) over the next two years 64 exclusive 'Provogue Studios' spread across 31 cities in

the country

Financial status

Year-2005/03 (Value in cr.)Capital Employed 77.2 Net Working Capital 41.36 Current Assets 77.72 Current Liabilities 17 Total Assets/Liabilities 93.85 Net Sales 108.12 Book Value (Unit Curr) 36

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Piramyd

History / Company profile

Incorporated on March 18 2005 by taking over the business of Piramyd Retail and Merchandising and Crossroads Shoppertainment

Company is in two segments Lifestyle retailing and Food Home and Personal Care (FHPC) retailing

They currently operate 12 stores spread across 4 cities occupying over 210,000 sq. ft of retail space

The offerings of the lifestyle retailing arm, Piramyd Megastore, include apparel and accessories like jewellery, watches, footwear and home textiles

Target: at the informed and fashion conscious customer

Financial status

Year-2006/03 (Value in cr.)Capital Employed 167.66 Net Working Capital 66.64 Current Assets 105.82 Current Liabilities 39.18 Total Assets/Liabilities 206.84 Net Sales 99.2 Book Value (Unit Curr) 59.59