201 2

INDUSTRY PROFILE

The Indian retail industry is the fifth largest in the world. Comprising of organized & unorganized sectors, India retail industry is one of the fast growing industries in India, especially over the last few years. Though initially, the retail industry in India was mostly unorganized, however with the change of tastes and preferences of customers, the industry is getting more popular these days and getting organized as well.

Indian retail business values at around US$ 550 billion as of now and about four per cent of it accounts for the organised sector. A report by Boston Consulting Group (BCG) has revealed that the country's organised retail is estimated at US$ 28 billion with around 7 per cent penetration. It is projected to become a US$ 260 billion business over the next decade with around 21 per cent penetration.

Another report by Business Monitor International (BMI) suggests that focuses middle and upper class consumer base has set vast opportunities in Indian cities. The greater availability of personal credit, improved mobility, better tourism, are all small, but significant contributors to the growth of Indian retail industry.

Major Retailers in India:-

1. RPG group: One of the first entrants into organised food & grocery retail with Foodworld stores in 1996 and then formed an alliance with Dairy farm International and launched health & glow (pharmacy & beauty care) outlets. Now the alliance has dissolved and RPG has Spencers Hyper, Super, Daily and Express formats and Music World stores across the country.RPG has 6 lakh sq. ft. of retail space and has registered a turnover of Rs 4.5 billion in 2006. It is planning to venture into books retail, with the launch of its own bookstores Books and Beyond by the end of 2007. An IPO is also in the offering, with expansion to 450+ MusicWorld, 50+ Spencer's hyper outlets covering 4 million sq. ft. by 2010.

201 2
2. Pantaloon Retail: It is headquartered in Mumbai with 450 stores across the country employing more than 18,000 people. It can boast of launching the first hypermarket Big Bazaar in India in 2001. An all-India retail space of 5 million sq. ft. which is expected to reach 30 mn by 2010. It is not only the largest retailer in India with a turnover of over Rs. 20 billion but is present across most retail segments Food & grocery (Big bazaar, Food bazaar), Home solutions (Hometown, furniture bazaar, collection-i), consumer electronics (e-zone), shoes (shoe factory), Books: music & gifts (Depot), Health & Beauty care services (Star, Sitara and Health village in the pipeline), e-tailing (Futurbazaar.com), entertainment(bowling co). 3. Tata group: It established in 1998, Trent - one of the subsidiaries of Tata Group - operates Westside, a lifestyle retail chain and Star India Bazaar - a hypermarket with a large varieties of products at the lowest prices. In 2005, it acquired Landmark, India's largest book and music retailer. Trent has more than 4 lakh sq. ft. space across the country.

4. Landmark group: It launched in 1998 in India. Lifestyle is spread across six cities, covering 4.6 lakh sq. ft. with a turnover of Rs 3.5 billion in 2005. A new division named Lifestyle International has emerged for their international brands business comprising Bossino, Kappa and Springfield in their portfolio.

5. Reliance Indias most ambitious retail plans are by reliance, with investments to the tune of Rs. 30,000 cr ($ 6.67 bn) to set up multiple formats with expected sales of Rs 90,000 crores ($20 bn) by 2009-10. There are already more than 300 Reliance Fresh stores and the first Reliance Mart Hypermarket has opened in Ahmedabad.

6. AV Birla Group

201 2
They have a strong presence in apparel retailing through Madura garments which is subsidiary of Aditya Birla Nuvo Ltd. They own brands like Louis Phillipe, Van Heusen, Allen Solly, Peter England, Trouser town.

7. Bharti-Walmart Their plans include US$ 7 bn investment in creating retail network in the country including 100 hypermarkets and several hundred small stores. They have signed a 50:50 percent joint venture agreement with Walmart. Wal-Mart will do the cash & carry while Bharti will do the front-end.

8. Subhiksha Subhiksha is a Chennai-based, decade old, no frills, food, grocery, pharma and telecom, discount retail chain. ICICI Venture Capital holds 24% in the equity capital of Subhiksha. It has more than 500 stores across the country.

9. Piramal Group In September 1999, Piramal Enterprises announced their arrival into retail with the launch of three retail concepts: India's first true shopping mall of international standards, called Crossroads; a lifestyle department store named Piramyd Megastore; and a family entertainment centre known as Jammin. Piramyd Megastore and Jammin were anchor tenants for Crossroads.

10. K Raheja Group They forayed into retail with Shoppers Stop, Indias first departmental store in 2001. It is the only retailer from India to become a member of the prestigious Intercontinental Group of Departmental Stores (IGDS). They have signed a 50:50 joint venture with the Nuance Group for Airport Retailing. Shoppers Stop has 7, 52, 00 sqft of retail space with a turnover of Rs 6.75 billion.

Retail formats

201 2
Mom-and-pop Stores: They are family owned business serving to small sections, they are individually handled retail outlets.

Hyper markets: These are large self-serving outlets offering a large variety of products of different categories.

Departmental Stores: These are general retail merchandisers offering quality of products and services.

Convenience Stores: These are located in residential areas with slightly higher prices goods due to the convenience offered.

Shopping Malls: They are the biggest form of retail, they offer customers a large variety of products of different categories/brands and services including food and entertainment under a single roof.

Category Killers: These are the giant retailers that dominate one area of merchandise (Eg:Office Depot, Tower Records and The Sports Authority).This is also known as Multi Brand Outlets.

SpecialityStores: These stores concentrate dealing in specific categories and provide deep assortment.(Eg:-RPG Music World in Mumbai)

Discount Stores: These are big factory outlets that give discounts on MRP.

E-tailers: These are retailers providing online buying and selling of products and services. (Eg:-Amazon.Com,Flipkart.Com)

201 2
2a.Background and inception of the company Spencers Hyper (RPG Group) Since 1863, Spencers has been a part of the Indian retail landscape. At one time, the Spencers Empire stretched from Peshawar to Cochin, from Karachi to Chittagong, spanning the length and width of undivided India. Originally owned by a British gentleman yes, there was a Mr. Spencer (John William Spencer, to be precise) it acquired Indian ownership in the 1960s, and became part of the RPG Group in 1989. In 1995, RPG Enterprises, the flagship company of the RPG Group, launched Foodworld as a joint venture with Hong-Kong based Dairy Farm International. The joint venture, which operated supermarkets under thename Foodworld and hypermarkets under the name Giant, was terminated in 2006. RPG retained 48 of the 93 stores it owned. These were re-furbished and their launch under the brand name, Spencers, kicked off a new phase in both the history of the Spencers brand, and the retailin India. Since inception Spencers has been a consumer-centric brand, constantly innovating, pioneering formats, evolving over time but always keeping consumer needs and satisfaction center-stage. Back in 1920, we were the first grocery chain in India. In 1980, we became the first supermarket chain, and in 2001, we introduced India to the joys of hypermarket shopping. What has remained unchanged almost 150 years is the trust the Spencers brand evokes. To the consumer, it carries the promise of innovation, quality, and service; the confidence that they will always be able to find a Spencers at a convenient location; that it will have a pleasant ambience; andthat it will offer a wide range of products at affordable prices. Management Board

201 2

New Ventures Spencers retail has announced a tie-up with British retailer Woolworths Plc for exclusively selling its famous toy brand Chad Valley through its outlets. Besides the Chad Valley range of toys (available at prices Rs. 49 upwards), Woolworths is also planning to introduce the Ladybird range of kids wear.

Major Future Plan The company plans to focus on the larger format stores in the identified growth clusters with higher market potential value and stronger brand equity for Spencer's. These clusters are Bangalore, Hyderabad, Coastal Andhra Pradesh, Chennai, Delhi NCR, East UP, Pune, Mumbai, South Kerala, Aurangabad, Punjab and Kolkata. The company has already reserved 2 million square feet of space all over the country and will be creating close to 10,000 jobs in its different formats. Spencers Retail currently employees 4,500 people and has 10 million square feet of space. In every financial year, Spencers is increasing its stores from 150 to 250 with a target of expanding by 400 more in the next two years. The company had last year announced aRs 2,500cr investment plan to expand its business across the country. Spencers was the first to introduce the concept of music retailing with "Music World" chain of stores, followed by "Books and Beyond"[Retail chain of Book Stores] and "RPG Cellucom"[Retail Chain of Mobile Stores]. They are planning to setup 1,500 cellcoms and 500 Music Stores by 2012.

201 2
Spencers is all set to enter the standalone Lifestyle Retailing segment by opening American Lifestyle Brand stores in India - Beverly Hills Polo Club [BHPC].

Major Milestones 1863 John William Spencer and Charles Durrant open the first ever Spencer store in Chennai. 1920 Spencers becomes the first grocery store in India. 1980 Spencers becomes the first supermarket chain under Food World in India. 1989 RPG Enterprises buys a majority stake in Spencers. 1995 Spencers enters into a Technology Assistance Agreement with Dairy Farm International Holdings Ltd., Hong Kong, to set up the Foodworld chain of supermarkets in India. 1996 First Foodworld store inaugurated in R APuram, Chennai, by M. S. Subbulakshmi, renowned Karnatic musician. 2001 First hypermarket inaugurated in Musheerabad, Hyderabad, by Krishna Yadav, Labor Minister of Andhra Pradesh. 100th Foodworld store inaugurated in Pondicherry 2006 Joint venture with Dairy Farm International Holdings terminated.First new store under the Spencers brand name inaugurated in West Mambalam, Chennai

201 2
2008 75,000 sqft flagship store inaugurated at South City Mall, Kolkata. First standalone retail store inaugurated at Vadodara. Exclusive tie-up with 3 billion Woolworths plc, UK, for retailing their internationally acclaimed toy brand, Chad Valley, and their Ladybird brand of kidswear; the latter is Woolworths first international tie-up in the childrens apparel segment

2009 Launch of the first exclusive brand outlet of Beverley Hills Polo Club in Delhi Launch of Bangalores first hyper store on 35000 sq. ft in upmarket Sarjapur Launch of a 12000 sq. ft hyper in Andhra Pradeshs rich town, Warangal. 2010 Foray into Punjab with the launch of three Beverley Hills Polo club outlets in Amritsar and Jalandhar Announcement of a change in brand positioning from Taste-the-World to Makes Fine Living Affordable 2b.Nature of business carried:Nature of business done by Spencers is Retail. Spencers Retail Limited is a multi-format food-first retailer providing a wide range of quality products to discerning young customers - well-travelled citizens of the world, looking out for authentic flavours and experiences in a fun-filled shopping environment. Our brand positioning Makes Fine Living Affordable embodies this approach, delighting shoppers with the best products and services that enable a fine living at reasonable prices while providing them with a warm, friendly and knowledgeable retail environment. Spencer's Retail is the fastest-growing retail companies with approximately 2 million square feet of retail space and more than 400 stores in 65 cities.Products include food, apparel, electronics, lifestyle products, music, and books. Spencer's Retail is a division of RPG Enterprise, a business group with more than 20 companies in industries such as power, technology, retail, and entertainment.

Different formats of Spencers Retail

201 2
Format Stock Min. Trading Area (sq.ft)

Spencers Hyper

Dairy products, fruits, vegetables, bread and bread products, fruit juices, fresh butter, coffee/tea, masalas, pickles, ghee, fresh fish and meats. Vegetables, fruits, milk, eggs, breads, and daily use items. Regular groceries and daily use products Home care products, personal products

1000

Spencers Super

2000

Spencers Fresh

4000-7000

Spencers Daily

8000-10000

The company operates through the following formats: Spencers Hyper:A fast growing retail network of hypermarkets with large format stores in Bangalore, Hyderabad, Mumbai, Gurgaon, Ghaziabad, Lucknow, Calicut, Vizag, Vijayawada, Aurangabad, Durgapur, Kolkata, Gorakhpur and Warangal. The Spencers Hypermarkets are huge destination stores, more than 25,000 square feet in trading area. Shoppers come here looking for fantastic deals across all categories. Hypermarkets ensure a comfortable, clean, bright and functional ambience to shop along with the convenience of finding everything under one roof at the best value for money.

Spencers Super:One of the largest supermarket chains in the food and grocery segment in India. The Spencers Super is the place to go for weekly and monthly shopping.

201 2
About 8000-15,000 square feet in size, the Spencers Super not only caters to the daily needs but also stocks Home care products, Personal care products, Bakery, Chilled and frozen food, Baby care besides groceries and staples, Fresh fruits and vegetables and many more.

Spencers Express:Spencers express positioned as the food and grocery store next door. These stores are around 1000 square feet in size. They are open from 7 am to 10 pm and also provide with home delivery. The Express store stock dairy products, fruits and vegetable, bread and bread products, cut vegetables/ready to cook, fruit juices, fresh butter, fresh coffee/tea, fresh masalas, fresh pickles, fresh ghee, fresh fish and meat.

Spencers Daily:Small format stores conveniently located with a range of product to meet daily household needs. The Spencers daily store is a friendly neighborhood store, which caters to the entire daily shopping need from regular groceries to fresh food and also weekly top-up shopping. About 4000-7000 sqft in size and with a bright and friendly atmosphere, Spencers Daily saves the hassle of bargaining with the local Kirana shop owners because it offers the lowest possible prices.

Spencers Fresh:Spencers Fresh stores provide with an enjoyable convenient shopping environment in very own neighborhood. These 2000 square feet air-conditioned stores are well stocked with fresh food of the very best quality, such as fresh farm produce, vegetables, fruits, milk, eggs, breads and much more. With an impressive range and a clean, bright and hygienic ambience, Spencers Fresh is far better than the regular sabzimandis or local vegetable markets and at Spencers Fresh consumers not only do get fresh, clean and tasty farm produce but also lowest possible prices in the locality, yes even lower than sabziwala!

2c.Vision, Mission and Quality policy:-

201 2
VISION Vision of spencers To build spencers as the most professionally managed retail business in the country through: Excellence in all operating process; Nurturing and facilitating a learning and growth culture; Building a unique retail experience for the customers MISSION Mission of spencer's Strives to exceed the aspirations of its customers for a healthy and fulfilling lifestyle by providing: The most innovative customer goods and delectable taste experience the ultimate shopping experience, unbeatable value.The next place away from home or office to relax and indulge. QUALITY POLICY For Spencers quality determines success. Continuous process improvements are carried out to ensure complete satisfaction of customer and market requirements. 2d. Product/Service profile:-

Food

Fashion

Personal Care

Home Products

Imported Range

201 2
Spencers smart choice jams & marmalade Spencerspon ni raw rice premium Spencers smart choice kismis yellow Spencers smart choice almond Spencers right value sugar Spencers smart choice kaju (320 no.) Tasty wonders chips &namkeens Spencers smart choice fruit beverages (apple, orange, mixed)

Men's cotton shorts Women s salwarkame ezdupatta Kids cotton coordinate sets mens denims in 6 shades

Denim talc powder Brut original deodorant. Camay nature soap

Chad Valley Toys & Games Collage Studio Stationery Items Living Smart Range Do-it-Yourself Furniture Maroon Non-stick Cookware Set

Pringles original MARS Snickers snack size Tang orange instant drink mix

Product Categories
i. ii. iii. iv. v. vi. Food and grocery including FMCG processed food. Fresh fruits, vegetables, and exotic range, Speciality and international foods. Personal care, cosmetics, and fragrances. Home and office essentials, Electrical and Electronics. Garments and fashion accessories for men, women and kids. Food Court and Caf.

2e.Area of Operation:-

201 2
Spencers is the pioneer in organized food retailing in India, the modern-day Spencers started operations back in the early 90s, in South India. We run more than 400 stores across 65 cities in India. Currently, we offer customers five retail store formats: a. Spencers Hyper b. Spencers Super c. Spencers Express d. Spencers Fresh and e. Spencers Daily. Spencers has outlets in Mumbai, Bangalore,Gurgaon, Ghaziabad, Lucknow, Calicut, Hyderabad, Vizag, Vijayawada, Aurangabad Durgapur and Kolkata. Spencer's has retail footage of approximately 2 million square feet and over 400 Spencer's stores in 65 cities. The company operates through the following formats: The Spencer's Hyper stores are destination stores, of more than 15,000 sq. ft in size. They offer everything under one roof. The merchandise ranges from fruits & vegetables, processed foods, groceries, meat, chicken, fish, bakery, chilled and frozen foods, garments and fashion accessories, consumer electronics & electrical products, home decor and needs, office stationeries, soft toys. On an average, a Spencer's hyper stocks 70,000 SKUs across 35,000 items. Industry: - Power, Retail, Tyres/Tires, Transmission, Technology, Entertainment, Real Estate and other

Power CESC, Noida Power Company Limited Tyres / Tires- CEAT,CEAT Srilanka, Phillips Carbon Black, Harrisons Malayalam Transmission- KEC International, RPG Transmission, Nitel Technology- Zensar Technologies, RPG Cables, RPG Life Sciences ,Raychem RPG Retail -Spencer's Retail, Music World, Books and Beyond ,RPG Cellucom, Entertainment -Saregama Others-Spencer's Travel Services, Spencer International Hotels

2f. Ownership Pattern SLNO Types of Shareholders No of shares Total no of shares

201 2
SHAREHOLDING OF PROMOTER INDIAN BODY CORPORATE

80066888

TOTAL 2 2 PUBLIC SHAREHOLDING INSTITUTIONS FINANCIAL INSTITUTIONS BANKS MUTUAL FUNDS VENTURE CAPITAL FUNDS FOREIGN INSTITUTIONS INVESTORS INSURANCE COMPANIES TOTAL NON INSTITUTIONS BODIES CORPORATE INDIVIDUALS INDIVIDUAL SHAREHOLDING OTHERS INDEPENDENT DIRECTORS NRI TRUST 10 92 2 94 4 202 80066888 5127455 17066457 5626211 42098988 6475245 76 394356

625

12988678

22 650 4 298 2 5844766 40000 86980 200000

TOTAL 783

23 21668

1756

201 2
2g.Competitors Information: Central Total Hyper Market Big Bazaar

2h.Infrastructure Facilities:Spencers has selected Wipro for delivering best in class Infrastructure Management Services for a period of five years. As part of the scope, Wipro is responsible for providing IT infrastructure support for all the stores, distribution centers, regional and zonal offices for Spencers apart from also supporting future store roll outs over the 5 year period. Wipro will leverage its state of the art Global Service Management Centre, Mysore to provide real time information through dashboards thus making the entire delivery process more proactive for Spencers. This IT service delivery transformation will benefit Spencer's with cost efficiencies, enhancing IT system availability and streamlining IT delivery process for Spencers. 2i.Achievements & Awards India Retail Forum Turnaround Retailer of the Year, 2006. India Retail Forum Most Evolved Retailer of the Year, India Retail Forum, 2007. Food Forum of India Coca Cola Golden Spoon Most Admired Food & Grocery Retailer, Convenience and Express Formats, 2008. VMRD award Spencers was awarded the first runners-up in the Visual Merchandizing Category at the In-store Asia, 2009 Reid & Taylor, Bond With the Best,

201 2
Retail Excellence Award, Retail Icon of the Year, 2010 to VineetKapila. Images Excellence Award For Pioneering Retail in East at the East India Retail Summit Awards, 2011. Ranked 3rd Among the Most Trusted Brands in Retail. 2010 in the Brand Equity AC Nielson Brand Survey, 2010. Ranked 47th Among Top 50 service Brands in India, 2010 in the Brand Equity AC Nielson Brand Survey, 2010. SAP ACE Award For Customer Excellence, 2010.

2j.Work flow model

MARKETING

201 2
LOCATION 1 STORES

BUYING AND PROCUREMENT

STORE PLANNING

2k.Future Growth and Prospectus:The company plans to focus on the larger format stores in the identified growth clusters with higher market potential value and stronger brand equity for Spencer's. These clusters are Bangalore, Hyderabad, Coastal Andhra Pradesh, Chennai, Delhi NCR, East UP, Pune, Mumbai, South Kerala, Aurangabad, Punjab and Kolkata. The company will be investing Rs. 10 billion over the next 3 years using both internal source.

DISTRIBUTION & LOGISTICS

FINANCE

VENDORS

LOCATION 2

STORES

LOCATION 3

STORES

CORPORATE

HUMAN RESOURC E

LEGAL

201 2
The company has already reserved 1 million square feet of space all over the country and will be creating close to 10,000 jobs in its different formats. Spencers Retail currently employees 4,500 people and has 6 million square feet of space. In every financial year, Spencers is increasing its stores from 150 to 250 with a target of expanding by 400 more in the next two years. The company had last year announced aRs 1,500 investment plan to expand its business across the country. Spencers was the first to introduce the concept of music retailing with "Music World" chain of stores, followed by "Books and Beyond"[Retail chain of Book Stores] and "RPGCellucom"[Retail Chain of Mobile Stores]. They are planning to setup 1,500 cellcoms and 400 Music Stores by 2012. Future and growth of Indian retail industry Retailing Customer is King A Customer is the most important visitor on our premises. He is not dependent on us. We are dependent on him. He is not an interruption on our work. He is the purpose of it. He is not an outside of our business. He is a part of it and we are not doing him a favor by servicing him. He is doing us a favor by giving us an opportunity to do so. Mahatma Gandhi The word retail has its origin in French word retailerand means to cut a piece offor tobreak bulk. The term Retailing is defined as All activities involved in selling goods and services directly to final consumers for their personal and non-business use. In simple terms, it implies a first-hand transaction with customer. Retailing involves a direct interface with the customer and the coordination of business activities from end to end right, from the concept or design stage of a product or offering, to its delivery and post delivery service to the customer. The industry has contributed to the fastest changing and dynamic industries in the world today.

Retailing, it is an emerging trend in the India and Hyderabad is not far behind which is also witnessing the stupendous growth and opportunities presented by this sector. Many institutionsManufacturing, Wholesalers and retailers do retailing, but most retailing is done by Retailers. A business wholesales come from primarily from retailing. It is a proven fact that in India the retail industry has become the 2nd largest employer after agriculture. Indian retail sector is in boom period and many reasons are contributing to it.

201 2
The retail scenario in India is unique. Much of it is in the unorganized sector, with over 12 million retail outlets of various sizes and formats. Almost 95% of these retail outlets are less than 500 sq. ft. In size, the per capita retail space in India being 2 sq. ft. compared to the US figure of 16 sq. ft. Thus Indias per capita retailing space is the lowest in the world. With more than 9 outlets per 1000 people, India has the largest number of outlets in the world. Most of them are independent and contribute as much as 95% to the total retail sales. Because of the increasing number of nuclear family, working women, greater work pressure and increased commuting time, convenience has become a priority for the Indian consumers. The Indian retail market, which is the fifth largest retail destination globally, has been ranked the 2 most attractive emerging market for investment after Vietnam in the retail sector by AT Kearneys seventh annual Global Retail Development Index (GDRI), in 2008. The share of retail trade in the countrys gross domestic product (GDP) was between 8-10% in 2007. It is currently 12%, and is likely to reach 22% by 2010.
nd

A McKinsey report 'The rise of Indian Consumer Market', estimates that the Indian consumer market is likely to grow four times by 2025. Commercial real estate services company, CB Richard Ellis' findings state that India's retail market is currently valued at US$ 511 billion. The Indian retail market is the fifth-largest retail destination globally. It is estimated to grow from the US$ 330 billion in 2007 to US$ 427 billion by 2010 and further US$ 637 billion by 2015. Indian retail showed a growth rate of 49.73% with a turnover of US$ 25.44 billion in 2007-08 as against US$ 16.99 billion in 2006-2007. Retail contributes to 10 per cent of Indias Gross Domestic Product and provides employment to 8 per cent of Indias working population. Higher disposable incomes, easy availability of credit and high exposure to media and brands has considerably increased the average propensity to consume over the years. The analysts foresee bright future of the retail sector. A huge number of shopping malls, nearly 100, have come up in the recent past, generating 20mn sq ft. retail space, extending more space of about 12mn sqft to it. Nearly 60 malls are on the verge of completion and may be operational by the end of current financial year. A forecasted number of nearly 200 malls, in a move to make additional 50mn sqft of retail space, will be completed within the next two-years. India retail industry is expanding itself most aggressively; as a result a great demand for real estate is being created. Indian retailers preferred means of expansion is to expand to other regions and to increase the number of their outlets in a city. It is expected that by 2012, India may have 800 new shopping centers. In the Indian retailing industry, food is the most dominating sector and is growing at a rate of 9% annually. The branded food industry is trying to enter the India retail

201 2
industry and convert Indian consumers to branded food. Since at present 60% of the Indian grocery basket consists of non- branded items. The global retail giants like Wal-Mart, Spar International, Tesco, K-Mart/SEARS, Carrefour, ZARA, FCUK, Carrefour Group and The Home Depot, NEXT, Mother Care, lKEA, Trussardi, DKNY and many more have made plans to march in the Indian market. Retail Sector and its scope in India Structure of Indian Retail Sector The retail industry continued in India in the form of Kirana stores till 1980. Soon, following the modernization of the retail sector in India, many companies started pouring in the retail industry in India like Bombay Dyeing, Grasim etc. From that time the retail sector in India can be widely split into the organized and the unorganized sector. Organized Retail Sector After 50 years of unorganized retailing and fragmented Kirana stores, the Indian retail industry has finally began to move towards modernization, Systematization and consolidation. Today, modernization is the catch phrase and the key to understanding retail in the next decade. There has been a boom in retail trade in India owing to a gradual increase in the disposable incomes of the middle class households, as a result of good performance of IT Service and Infrastructure sectors. More and more players are entering the retail business in India to introduce new formats like malls, supermarkets, hyper markets, discount stores, department stores and even changing the traditional looks of bookstores, chemist shops, and furnishing stores. Unorganized Retail Sector The unorganized retail sector basically includes the local Kirana stores, hand cart, the vendors on the pavement (sidewalk) etc. This sector constitutes about 95% of the total retail trade. As 70% of the employment is generated in Agriculture sector, hence this form of retailing is widely seen in those areas and of course to some parts of the urban. There is a lot of hue and cry in the sector for opening of sector for direct investment from the foreign players, but government cannot neglect the interests of small players. One of main reason of not opening this sector to FDI is it may shrink the employment in the unorganized sector and expand that in the organized. 3. THE McKINSEY 7S MODEL The Mckinsey 7s model is based on the theory that, for an organization to perform well, these 7 elements need to be aligned and mutually reinforcing that is used in a wide variety of situation like elements of a project as well, where an alignment perspective is useful how we decide to define the scope of the study.

201 2
The seven elements are:-

STRUCTURE: THE HIRARCHICAL STRUCTURE OF SPENCERS HYPER STRATEGIC (Regional manager, Store manager)

MANAGEMENT ADVISORY (Marketing Manager, HR manager,Assistant manager)

MID-MANAGEMENT (Supervisors, Floor managers)

SPECIALIST (Merchandise manager,Cashiers,Accountants)

CO-ORDINATORS (Store staff,Salesmen,Promoters,House Keeping staff)

SYSTEM

201 2
The daily activities and procedures that staff members engage in to get the job done. The Spencers inherits the special skill for storage known as TIME CLOCK that helps them to scale rapidly. They had differential storage units, which implied that in some cases they had underutilized resources while in some others, were staving for resources. A retail format requires lot of applicaton and generates huge amount of data with thousands of transaction taking place on a daily basis.At Spencers as data grew rapidly back-up and recovery processes became extremely time consuming in the attached storage servers environment causing Spencers to restrict regular back-up to key servers only.

STYLE Democratic style is adopted. The managers and the staff members work together as a team to serve the customers and achieve organisational goals. The department targets are achieved as a team that consists of sales targets, customers retention targets.the targets are yearly targets that are the financial year .

STAFF The employees and their general capabilities. The staff of Spencers is recruited on the basis of their Minimum qualification, Work experience, and Service orientation. There are around 500 employees. The Staff members and the promoters of different brands work simultaneously to achieve the overall objectives of the organisation. The staff members are treated as a part of the family and are motivated to work with commitment and dedication for the betterment of the personnel and the organisation.

STRATEGY Spencers has effective buying and visual merchandising.The plan devised to maintain and build competitive advantage over the competition. Spencers has effective buying and procurement team and also consists of merchandise managers who plan according to seasons and preference of customers and purchases the merchandise pertaining to current trend and style.

201 2
It also comes out with different forms of delights which gives special offers on different products. (coffee delights, yummy delights,Season of celebration delights). Visual merchandising is the activity of promoting the sale of goods,especially by there presentation in the stores.This include combining products,environment and spaces into a stimulating and engaging dislap to encourage the sale of a produc or services

SKILL The actual skills and competencies of the employees working for the company. The strongest skill represented by employees within the company is team work and coordination. The skills represented by currentemployees is smart work,coordination, mutual understanding, and team work. The employees work together has a team and do their job effectively and efficiently. The skills are monitored through performance checks and the targets achieved by them. However there is a skill gap when it comes to soft skills of salesmen.

SHARED VALUE It iscalled "superordinate goals" when the model was first developed, these are the core values of the company that are evidenced in the corporate culture and the general work ethic. Spencers believes in reaching the peak point in customer delight.The staff and the departments.Managers are obtained to serve the customers to fulfil thereneeds,to build an effective relationship with customers.Spencers strives to the maximum extent to give more than what the customers expect in others words they treat CUSTOMER AS KING. The staff are given effective training with a better product understanding to know product better to present it to the customers. The manager and the staff work simultaneously to serve the customers in a better way effectively as well as efficiently.

201 2

4. SWOT ANALYSIS

201 2
STRENGHTS Strong distribution network More expensive than other high street stores limited market. Intense Staff commitment and loyalty Focusin g on youth generation may lose old generation market. Increasing profit margin WEAKNES SES

Brand name

Merchandising skills OPPORTUNITIES Sarjapur area consists of all class of family, THREATS Customers are flexible towards discount and offers

Changing the Pattern of consumption along with shopping trends

Personalized service offered by Mom -&-Pop stores.

Social taste

People are educated and job holder, Spen cers can do better Promotion through pamphlets about facilities and services of Spencers.

Competit ors follow competitive and discount pricing strategy.

201 2

5. ANALYSIS OF FINANCIAL STATEMENT PARTICULARS Sales(Net of Taxes) Operating Income Other Income Total Income Profit before Depreciation and Tax Less: Depreciation Profit Before Tax Less: Earlier Years Income Tax Less: Provisions for Tax 2009-2010 5706.07 228.30 84.63 6019.00 388.45 161.88 226.57 (3.17) 37.25 2008-2009 6103.70 238.35 6.06 6347.76 356.28 140.05 216.23 -0.27 75.38 140.58 267.56 408.14 11.57 6.97 14.06 380.54

Profit After Tax 179.56 Add: Profit Bought Forward from Previous year 380.54 Surplus Available for appropriation Appropriation Debenture Redemption Reserve Proposed Dividend Provision for Dividend Tax Transfer to general Reserve Balance Carried to Balance Sheet 558.97 25.00 17.13 2.91 17.95 495.98

The Companys Sales and other operating income has increased from RS.6341.70corers to RS. 8926.08 Crores, an increase of 40.75% over the previous year. The Company has also recorded same store growth of 10.64% during the year.

201 2
From the balance sheet it is clear that company is passing through a continuous growth compared to previous year.

6.LEARNING EXPERIENCE As learning never ends, my learning has come from a lot of exposure, on the job understanding the organization activities and close interaction with company. In brief my learning and achievements can be summarized as under: 1. Learning about the competitive environment under which an organization works. 2. How to attract customers with the help of Visual Merchandising. Visual Merchandising is the activity of promoting the sale of goods, especially by their presentation in retail outlets. This includes combining product, environments, and spaces in to a stimulating and engaging display to encourage the sale of a product or service. 3. Gained knowledge about retail operations which includes, organization culture, chain of command, knowledge about different brands and product, discounts and offers. 4. Gained practical knowledge about space on Hire. Space on hire is the area within the store premises which is rented to companies interested in Branding. It includes Hoardings, Banners, Standees, Stage for Promotional activities and various other means. 5. Learned about the customer perception about Spencers Hyper, Bangalore Central and Total Mall.