TRANSFORMING HOPPING TEADFAST ON OUR COMMITMENT ANNUAL REPORT BUILT ON TRUST 2020-21 TRANSFORMING HOPPING Our customer obsession for all things stylish is met at our stores that offer them myriad choices from renowned international and national brands. But we do not stop there. We go beyond to include conveniences and perks, continuously enhance experiences and make shopping a delight for our diverse cross‑section of customers. Read more on Pg. 18 2 / 1 TEADFAST ON OUR COMMITMENT We are pragmatic in our approach to achieving our ambitious goals. We strive for excellence across financial and non‑financial performance. To cater to an array, we at Shoppers Stop, bring an agile business model and the ability to take cautious risks, which enable us to create long‑term, sustainable value for our stakeholders, through all odds. Read more on Pg. 26 BUILT ON TRUST Our business is built on the unfailing faith that people have in our brand. We take decisions that harmonise with customers, the environment and the communities around us. We come to work each day to continue upholding their faith and conduct ourselves with uncompromised integrity and transparency. Read more on Pg. 32 Key Financial In this Highlights 2020-21* Report ` 2,142 crore Corporate Review REVENUE 04 Who We Are 10 Board of Directors 14 Management Team 16 COVID-19 Initiatives Strategic Review ` 18 Transforming Shopping (187) crores 20 Chairman’s Communique EBITDA 22 Message from the MD & CEO 24 Key Performance Indicators 26 Steadfast on our Commitment 28 Megatrends Responsible Business ` 30 Governance (305) crores 32 Built on Trust PAT 34 Risk Management 36 People *Non-GAAP numbers are reported in this section 37 Corporate Social Responsibility 38 Awards Statutory Reports 40 Management Discussion and Analysis 52 Directors’ Report 69 Business Responsibility Report 80 Corporate Governance Report Financial Statements 101 Standalone 185 Consolidated Check our website to get to know us better Who We Are OUR UNIVERSE OF ICONIC STYLES AND TRENDS Each customer is unique. Their tastes, preferences and choice of brands are different. To cater to this wide array, we, at Shoppers Stop bring a multitude of national and international brands in apparels, fragrances, accessories, cosmetics, footwear, home décor and furnishings under one roof. VISION To be an inspirational and trusted brand, transforming customers’ lives through fashion and a delightful shopping experience every time. OPENNESS SOCIALLY RESPONSIBLE The obligation to dissent We will respect our and an environment customers’ rights and be conducive to socially responsible openness INTEGRITY EXCELLENCE We will be fair We will have an and not take environment what is not ours that encourages development and excellence VALUES INNOVATION CARE We will have an We will have a environment of willingness to innovation and apologise and growth forgive 4 / 5 SCALE 84 127 29 DEPARTMENT STORES BEAUTY DOORS CROSSWORD STORES 11 88 million HOMESTOP STORES ONLINE CUSTOMER VISITS (FY 2021) 11.5 million 800+ MOBILE APP DOWNLOADS TRUSTED BRANDS 47 CITIES 25,600 PIN CODES COVERED 4.5 million sq.ft RETAIL FLOOR SPACE Who We Are (Contd.) PRODUCT PORTFOLIO DEPARTMENT STORES India’s foremost fashion and beauty retailer, operating out of state‑of‑the‑art stores 84 STORES BEAUTY SPECIALTY India’s #1 offline beauty destination with a strong omni‑channel presence 127 BEAUTY DOORS CROSSWORD One of India’s largest bookstore chain 13 CITIES 29 CROSSWORD STORES 6 / 7 Corporate Review Corporate SHOPPERSSTOP.COM Website and mobile app that offer a convenient at‑home experience Strategic Review 1,20,000+ STYLES FEATURED ON THE APP 11.5 million APP DOWNLOADS Responsible BusinessResponsible 70 million VISITS HOMESTOP Premium, concept‑led home Statutory Reports store with contemporary designs to add exclusivity to your space 11 STORES Financial Statements Financial Who We Are (Contd.) STRATEGIC PILLARS FIRST CITIZEN PERSONAL India’s longest running and SHOPPERS most sought‑after loyalty Unique shopping assistance programme service, offering our customers a hyper‑personal shopping experience 8 million FIRST CITIZEN MEMBERS 207 16% SHOPPING ASSISTANTS CONTRIBUTION TO SALES 78% CONTRIBUTION TO SALES `9,000 AVERAGE TICKET SIZE Personal Shoppers’ digital initiatives • White Glove service 40% • Endless Aisle – A digital tab that customers can use CONTRIBUTION TO to browse through options in the store ONLINE SALES • Yellow Messenger service – A chat‑enabled, real‑time online interaction • Appointment services • Exclusive in‑house app 8 / 9 Corporate Review Corporate PRIVATE AND EXCLUSIVE BRANDS Iconic, homegrown brands, as well as Strategic Review exclusive international and celebrity brands curated across the categories of men’s, women’s and children’s apparel, accessories, and beauty Responsible BusinessResponsible 14% CONTRIBUTION TO SALES BEAUTY Dominating the beauty segment in India with a large in‑store presence, through our Statutory Reports department stores and standalone bridge‑to‑luxury formats 127 STORES 16% CONTRIBUTION TO SALES Statements Financial New Launches • Arcelia private label in the bath and body category • Ten Image in the skin care category • Bvlgari, Tiffany & Co, Loewe, Perfumes Houbigant Paris and Nishane in the fragrances and men’s grooming category • Kick‑started Scent‑a‑thon, a fragrance event Board of Directors DIVERSE AND CONFIDENT LEADERSHIP An independent and well‑informed Board goes a long way in protecting stakeholder interest and simultaneously maximising long‑term corporate values. Our Board along with its Committees provide leadership and guidance to the Senior Management as well as strategic direction to our operations. B.S. Nagesh Ravi C. Raheja Customer Care Associate, Chairman and Non-Executive Director Non-Executive Director An alumnus of the London Business a Member Engagement Officer, and, B. S. Nagesh is the Founder of a Public School, Ravi has over 26 years of Indian Green Building Council, where he Charitable Trust TRRAIN (Trust for comprehensive experience across real served as the Chairman (Mumbai chapter) Retailers and Retail Associates of India) estate, retail and hospitality. He has and as an evangelist for the green and for profit social enterprise, TRRAIN spearheaded business development cause, spearheaded the signing of the Circle. He has been involved with for the real estate arm of the Group and memorandum of understanding with CII‑ Shoppers Stop and its group companies played a significant role in guiding the Green Building Council to construct green since its inception in 1991 as the first teams of corporate strategy, finance buildings in 2007. employee. As part of his personal and planning for the Group’s retail and He plays a key role in the Group’s philosophy of ‘Learn, Earn & Return’, he hospitality divisions. At the helm of philanthropic initiatives through the K. stepped out of the day‑to‑ day roles of the most significant growth strategies, Raheja Foundation, Sadhana Education the business as Managing Director of the Ravi is actively involved in charting the Society and S. L. Raheja Hospital. He is Company in 2009 and founded TRRAIN. future growth of K Raheja Corp and the recipient of the EY Entrepreneur of He is the first Asian retailer to be inducted each of its businesses and has been a the Year Award 2020 for the Energy, Real in the World Retail Hall of Fame in 2008. catalyst in the Company’s evolution Estate and Infrastructure category, along Recently, he was awarded with the from a family‑owned business to a well‑ with his brother Mr. Neel C. Raheja. prestigious NCPEDP – Hellen Keller Award diversified conglomerate. for creating livelihood opportunities Ravi is an active contributor to the for Persons with Disabilities and was industry through premier forums such recognised as the Change Maker at the as Young President’s Organisation Sabera Awards. He is an Ashoka Fellow. (YPO) where he plays an active role as 10 / 11 Corporate Review Corporate Strategic Review Responsible BusinessResponsible Neel C. Raheja Venu Nair Non-Executive Director Customer Care Associate, MD and CEO With a strong background in finance, Venu Nair (Venugopal Nair), is the wherein he had the dual responsibility a degree in law from the Mumbai Managing Director and Chief Executive as Head of Region (South Asia), and University and an alumnus of the Harvard Officer of our Company. He is an Director of M&S, India for Marks & Spencer Business School (OPM Program), Neel International Retail Leader with 27 Reliance Pvt Ltd, which operates the M&S has extended the Company beyond the years of rich and varied experience in stores in India. Prior to that Venu was realms of real estate. He has worked his the Retail & Apparel Industry across based in London, working for M&S, UK. way to the top, scaling the Company to South Asia & Europe. He has also worked in Madura Garments new heights. With an ear to the ground and Arvind Mills. Prior to joining Shoppers Stop he was and ability to pre‑empt trends, he has the CEO of Westside at Trent Limited. Mr. Nair is a Bachelor of Technology (Hon) Statutory Reports been at the forefront of driving change In his earlier stint he was the Chief from NIT, Calicut and a MBA in Marketing and innovation within the Group. He also Commercial Officer ‑ Trent Ltd, where from S.P. Jain Institute of Management ushered in the malls and department he was responsible for all its commercial and Research, Mumbai. stores format in India, Inorbit Mall, operations, including merchandising, Shoppers Stop and Crossword bookstores store operations, E‑com, projects, are the culmination of his endeavour to marketing, visual merchandising, IT, bring organised retail into the country. business excellence and Landmark A respected name in the industry, Neel stores. He was Managing Director ‑ Marks chairs some of the most important & Spencer Reliance Pvt. Ltd, where he committees that shape key industry played a pivotal role in its growth and developments.