Shopper’s Stop: IT boosts Retail Industry

A case study on Storage in Retail
Gunjan Trivedi PDF Download ( KB, Pages)

Executive Summary

Retail is similar to the world's fastest train, the TGV. Its speed, availability and extraordinary experience set it apart. The same fundamentals separate the boys from the men in the retail industry. Here, only an organization that can scale up swiftly on demand, keep merchandize available, and create a consistently great customer experience will succeed. This is where technology plays a vital role.

 

Among the big players in the organized retail space in India, Shopper's Stop has always understood the criticality of scale, availability and experience, and has been an eager adopter of advanced, cutting edge technology. "We deployed JDA-MMS and JDA-WinDSS, core merchandizing, store PoS application and ERP in 1998, much before the other players," says Unni Krishnan T.M., the group CTO of Shopper's Stop retail business that includes Shopper's Stop, HyperCITY, Crossword, Mothercare, Desi Café, Brio and Home Stop. And Shopper's Stop has continued to pump energy in this area. Today, says B.S.Nagesh, MD, and vice chairman of Shopper's Stop, it has implemented pioneering technologies - like a self-checkout at HyperCITY, a first in both the retail brotherhood in India and globally.

 

The business and technological challenges that the retail sector face are similar to those in other sectors. What sets retail apart is the sheer volume of transactions it works with. It goes without saying that technology deployed in a retail environment needs to be robust. It needs to be intuitive, user-friendly and has to offer a consistent experience. This requires identifying cutting-edge technologies and putting them to innovative uses.

Shopper's Stop has one of the largest installed bases of AutoCAD software, says Krishnan, because the chain uses CAD technologies to craft, draw and plan its multiple stores as they roll them out.  The enterprise is also at an early stage of deploying a solution to optimization store-to-floor space ratio. Called Intactix, it's going to help the store managers visualize how to stock shelves using optimal sales and margin expectations. It also uses salesforce.com, to automate its sales team. The application helps monitor a large percentage of the gift voucher sales, which is about 10 percent (about Rs 65 crore) of Shopper's Stop's sales.

 

They rolled out replenishment applications for hypermarkets called E3, which helps HyperCITY analyze inventory trends, helping the enterprise refill its shelves faster at lower costs, forecast better, and address the critical element of product availability.

HyperCITY is also home to one of the group's most innovative use of technology. Called iScan, this handheld barcode scanning device lets customers scan their merchandize as they take them off shelves. It is also put to multiple use by bundling it with different apps. The same hardware doubles as stock-taking solution for inventory or a receiving solution at warehouses.

Two years ago, we decided to get a consolidated view of all our businesses, while it was still early enough to create commonality across platforms," says Nagesh. He associates three objectives with this move. One is transparency to view all his businesses. Another is that it provides a benchmark in managing technology as a part of the  business. Third is the eventual strength in acquiring a single view of the consumer across all its businesses.

However, when differentiation is required, specific solutions are created unhesitatingly. HyperCITY's speed checkout solution using iScan is an example.

 

The Person Behind It

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Unni Krishnan T.M.
the group CTO, Shopper’s Stop
There is generation gap between us and other retailers, as far as technology adoption is concerned. We’ve brought new-age technologies, some which others haven’t introduced.
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B.S.Nagesh
MD, and vice chairman, Shopper’s Stop
We want to have a common view of one customer across our retail formats, whether he’s buying coriander at HyperCITY or a cappuccino at Brio.

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