Foreword..................................................................... 03 Our Vision................................................................... 06 Our Mission Statement.............................................. 07 Our Service Vision Statement................................... 08 Our Values..................................................................

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CONTENTS
01

Inception of Shoppers Stop Ltd............................... 12 Shoppers Stop Chronicle......................................... 13 Management Structure.............................................. 20 Our Policies................................................................ 22 Our Departments and their Responsibilities........... 43 Unit Structure............................................................. 55 Commonly Used Terms in Retail.............................. 60

FOREWORD
I am very happy and pleased to see the new version of our employee handbook. Although we call this a handbook, in reality this is the machine which weaves the threads of the cultural fabric of our company Shoppers' Stop Ltd. This is the first introduction in Black & White of our principles and beliefs, practices of a humble beginning, which is now the basis of our value system and the foundation for the future. It reminds us of our roots from where and when we started; it helps us in understanding that every pair of legs that we count as a footfall is in reality a customer with rational and emotional expectations. Every store that we add to our chain, every new concept and every new brand brings with it hundreds of stakeholders in customers, employees and shareholders and the family has grown from 13 to more than 3000 in the group. Our vision is leadership and excellence in Retail and being "The No 1 Global Retailer in the departmental store category". Our mission statement is "Nothing but the Best". These can only be achieved if each one of you in the team takes pride in what we are creating for the stakeholders and believes in the value system. I would like to welcome everybody to Shoppers' Stop Limited in our pursuit towards creating quality retailing formats for our customers, whether it is Shoppers' Stop, Home Stop, Crossword, Mothercare, Brio, Desi-Caf, MAC and various other brands being launched or our subsidiaries HyperCity or our Joint ventures with Nuance, Timezone and Argos. Best Wishes, B. S. NAGESH Customer Care Associate & Managing Director
03

FOREWORD

Pic of Govind

Welcome to the world of shopping and Shopper's Stop Ltd.!!! Indian organized retail is growing at a breakneck speed and the future is bright & big. Shopper's Stop has been a pioneer in the departmental store format since it's beginning in 1991. We believe that delighting the customer is our first job. Hence all of us are called Customer Care Associate (CCA), irrespective of our level in the organisation. For example, the visiting card of Mr. Nagesh the Managing Director of our Company, reads as Customer Care Associate & M.D. Our Vision is to retain the No. 1 status in the department stores category. We have put together a mix of bests in terms of people, operational & service practices, merchandise, logistics, finance, information technology, marketing, loyalty practice, logistics, store planning, projects and visual merchandising. What do we want to achieve in the near future? ! We want to continuously grow the family of loyal customers. ! We want to engage, educate, empower, enrich and excite all our Associates. ! We want to be a profitable and socially conscious organization, bringing shareholders and the society at large, the best returns and happiness. ! We want to better our best Achievements, through our Mission, Nothing But The Best GOVIND SHRIKHANDE Customer Care Associate & Chief Executive Officer

FOREWORD
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OUR VISION

OUR VISION

to Be A G lobalRetailerIn India and MaintainIts No. 1 PositionIn The Indian Market in The D epartm ent Store C ategory

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OUR MISSION STATEMENT

OUR MISSION STATEMENT NOTHING BUT THE BEST We Will ProvideThe BEST Value In Term s Of Products Services, and And Adopt b e P ro cess Stakeholders, st For Without C om pro m ise, Thereby M atchingG lobal Standa Of P erform ance. rds

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OUR SERVICE VISION STATEMENT

SERVICE VISION STATEMENT IT'S MAGICAL, IT'S COMFORTABLE, IT'S MY STORE We Will CreateAn Environment Which Is Uniqueand E njoyable The Custom erand For Em ployee. We Will Ensu That Each Stakeholder re FeelsA SenseOf Involvement, Satisfactionand Com m itm ent The To Organization, If It Were His/HerOwn. As

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Service- vision statement

Image for Service Vision Statement

N o t h i n g B u t Th e B e s t

OUR VALUES

We will not take what is not ours We will strive to create systems and a cultu that re ensu res integrityat all levelsof the organization. The obligation to dissent We will providea workspace that offers freedomand security to express a point of view on a decision actionperceived or to be in co rrect or detrim en tato the best interests of any l stakeholde r. We will have an environment conducive to openness We will havean environm ent enabling transpaencyin r com munication, intent and actions,thereby buildingtrust of custom e , em ployees, r shareholders business and associates. We will have an environment for innovation We w ill encourage foster an environm ent and supportive new to idea s,thereby creatin gp ro g a nd m o m entu m r ch an gein ress fo the rightdirection. We will have an environment for development We w ill recognize supportthe individuals' and needfor growththroughconstant input, directionand opportunities, with respectto both em ployees business and associates.

OUR VALUES
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We will have a willingness to apologize and forgive We w ill create an environm ent is developm ental that rather than punitiveby buildingaccountability responsibility and for our actionsand a willingness acknowledge learn from to and m istakes. We will respect our customers' rights We will at all tim es,be focussed under tandingand then on s fulfillingthe expectations the custom e By definition, of r. th ecustom eris anyone ho interactswith us , i.e. w custom e supp lie, ow ne , em ployee, r, r r shareholder business and associate. We will create an environment of trust We will continually createsystems and structu and res, encourage eh avior b that allow speopleto trust each other. We will be fair We will at all tim es,treat em p loyees, m ersand business custo associates equallyand impartially. We will be socially responsible We will at all times,as individuals as an organization, and ensu that the effects of our actionson societyare re beneficial not detrimental. or

OUR VALUES
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INCEPTION OF SHOPPERS' STOP LTD.

Shoppers' Stop Ltd. was formed in 1991 by the K Raheja Corp. group of companies, one of the largest players in the country in the business of real estate development and hospitality. SSL is promoted by K. Raheja Corp. (C. L. Raheja Group). Founded in 1956, the Group has successfully ventured into the area of Real Estate, Hospitality and Retailing. The Retail business is professionally managed with directional inputs from the family. Today, Shoppers' Stop has acquired the status of a pioneer in organized retailing in the country. It has a very strong national presence and is also well connected with the International Retail scene. It is the only department store chain in India to be a member of IGDS, 'Intercontinental Group of Department Stores' where only the best store of each country gets an opportunity to be a privileged member. Shoppers' Stop plans to become a 49 store company by 2010, with a total retail selling space of over 3.6 million square feet.

INCEPTION
12

THE SHOPPERS' STOP CHRONICLE

October 1991: Shoppers' Stop is launched as a Men's ready-to-wear garment store in Andheri, Mumbai. March 1992: 27th March 1992 saw the addition of Shirtings, Suitings & Boys sections December 1992: On 13th December 1992 we started catering to the ladies merchandise. In order to cater to the yuppie crowd, we also added the casual merchandise section. May 1993: A separate division for children was started on the third floor with merchandise for girls, boys and infants. July 1993: Catering till now to only garments, we realized the potential for accessories and added a section on jewellery, cosmetics & watches. August 1993: Institutional sales - a new concept of selling was ushered in. This involves taking up bulk orders from customers who were not the end users i.e. sales to corporate clients, sale of gift hampers and gift vouchers, dress kits etc. September 1993: We introduced our first Retail Management Trainee program, an in-house management program where we selected graduates on the basis of a written entrance exam. The candidates were then imparted intensive training for one year, after which they were confirmed either as Supervisors or Assistant Merchandisers. December 1993: We co-hosted a carnival with all four Disney characters: Mickey, Mini, Donald and Goofy in their first joint appearance in India. The event attracted about 31,000 Customers. April 1994: 3rd April 1994 saw the launch of our inhouse brand of merchandise 'STOP' April 1994: In response to the ever-growing customer base, we

THE CHRONICLE
13

14

decided to establish a long-standing and mutually beneficial relationship with our customers through 'The First Citizens Club'- our customer loyalty program. Any customer is eligible to become a member of this club, by virtue of which he / she becomes entitled to avail certain privileges and benefits. The "First Citizen" program today has more than 7 lakh members. December 1994: We entered business schools and recruited our first batch of Management Trainees. Today we recruit a minimum of 20 students per year from colleges all over India. October 1995: The second store of Shoppers' Stop with an area of 38,000 sq.ft was opened in Bangalore. September 1996: 'The Festival of Britain', in collaboration with the British High Commission was celebrated in both the Bombay and Bangalore stores for a period of over 21 days spread over the months of September & October. August 1997: 'Parikrama' (a Sanskrit word meaning undertaking a complete circle of sacred objects) was launched. In Shoppers' Stop. This is an annual event which celebrates Indian traditions and culture. May 1998: Shoppers' Stop made its entry into the land of the Nawabs Hyderabad; and true to the style of the land, it opened with an area of 72,000 sq.ft. June 1998: In June 1998 we were awarded the prestigious IGDS Membership. It was the turn of technology next. ERP (Enterprise Resource Planning) package J.D. Armstrong was launched. December 1998: The Corporate Office of Shoppers' Stop shifted from the Retail Store

THE CHRONICLE

premises to MIDC, Andheri (East) September 1999: The smallest store of Shoppers' Stop Ltd. of 19,000 sq.ft was opened in Jaipur. It was inaugurated by a Grammy award winner Pt. Vishwa Mohan Bhat. Emphasis was given on new look to make it look better, unmarked, stylish, modern & bigger in size, since the carpet area available was very less. November 1999: From Jaipur we went to the capital city Delhi where we opened our next unit of 50,000 sq.ft at the Ansal Plaza Mall. March 2000: Oracle Financials was brought in and implemented across the country. April 2000: 'CROSSWORD' the renowned retail chain of bookstores became part of Shoppers' Stop Ltd. August 2000: We opened the 6th Store in our chain at Chennai. December 2000: Mumbai got a new landmark as we opened our store at Chembur. January 2001: The Corporate Office was shifted from MIDC to Malad (West). May 2001: We opened a new store at Pune on May 20th 2001. A Kargil hero honoured us by cutting the ribbon. October 2001: The event '7 Wonders' was launched. A promotion where lucky draw winners were flown to the 7 wonders of the world. This event saw look-alikes of famous personalities walking the roads of cities and our stores depicting the look of 7 wonders of the world. October 2001: Also saw the launch of Ramco Human Resources Information System, an ERP which automates all the HR activities. November 2001: We undertook a B2B initiative providing necessary information to our suppliers such as stocks and sales

THE CHRONICLE

related to their merchandise. Our corporate website

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16

www.shoppersstop.com also complemented this initiative. Through this website all our First Citizen members can view their loyalty card point statements. December 2001: We opened at Bandra, an upmarket location in Mumbai. It has the most remarkable feature of being the first store to not have any show windows. November 2002: Kandivli the 4th store in Mumbai city opened as the first store in the history of the company with wireless POS machines. January 2003: The 11th store in the chain was opened at Gurgaon with an area of 27,000 sq.ft.. March 2003: We ventured into Kolkata, the capital of West Bengal, the land of the intellectuals and set up our first store on Elgin Road. April 2003: We opened the 13th store in the chain and the 5th store in Mumbai at Mulund. February 2004: We opened the 14th store in the chain and the 6th store in Mumbai at Inorbit Mall, Malad. June 2004: Kolkata got a 2nd store at Salt Lake; the 15th in our chain. The size of the store is 42,065 Sq.ft. The design and fixtures are very contemporary. Every department is colour coded. There is a clear departure from wooden fixtures to metal. The new look and feel is very international. October 2004: We opened our 16th store in the chain and the 2nd one in Bangalore at Bannerghatta Road. April 2005: Pune's up market M.G. Road saw the addition of a 2nd store in Pune.

THE CHRONICLE

May 2005: Juhu got a new landmark with the 7th store in Mumbai being opened near the main hub of Juhu, the famous Iskcon Temple. The store is spread over 3 Levels and measures about 55000 Sq.ft. The faade is a combination of a glass curtain and alucobond panels that highlight the window displays and graphic panels. The presentation concept of the interiors is 'minimalistic and contemporary' which is achieved with use of light colours, brushed steel and glass. June 2005: We opened out 20th store in the chain at Shipra Ghaziabad. It is strategically located to cater to residents of Noida, Ghaziabad and East Delhi. The store measures approximately 39000 sq. ft. (Carpet Area) and is spread over two floors. The facade is in a classical style with a combination of arches & minarets. July 2005: India's First ever M.A.C. was store launched at Shoppers' Stop, Juhu. M.A.C (Makeup Art Cosmetics), globally the professional artist's brand of choice for fashion, film, TV, theatre, music and photography, is the first brand under the Estee Lauder portfolio to enter the Indian retail market. It has broad line of colour cosmetics, makeup tools, skin care, foundations, and accessories targeting professional makeup artist and fashion forward consumers. December 2005: Our 1st specialty home store "HomeStop" was opened in Bangalore with great fanfare. The vision behind HomeStop is "Create your Home with us". The store takes care of making your Home from a House. It is a one stop solution for all your Home needs. March 2006: Launch of BRIO at Bangalore. BRIO offers a stylish, new world of gourmet coffee, specialty tea and delectable European bistro fare which promises to offer something which all the coffee connoisseurs across the country have never experienced before April 2006: Launch of mothercare at the Juhu & Bandra Stores.

THE CHRONICLE
17

'mothercare' is the leading specialist retailer for mothers-to-be and parents of young children, offering the widest range of clothing, hardware and toys for the pre-school child, in the UK and internationally. May 2006: Launch of HyperCITY at Mumbai. We made a foray into food and general merchandise retailing through Hypercity, our 124,000 sq. ft hypermarket. The product offering includes fresh fruits and vegetables, groceries, apparels, electronic appliances etc all under one roof. July 2006: Shoppers Stop Limited is appointed as "Master Franchisee" of Crossword Bookstores Limited for conducting the business of retail book stores under the trademark "Crossword" at all existing stores (Crossword Owned Stores) wherever permissible and excluding stores which are operated by Crossword's existing franchisees. September 2006: Launch of the second HomeStop at Malad, Mumbai. The store is approximately 49,000 sq. ft. on a single floor with displays of bedrooms, living rooms, a modular kitchen and a centre podium to exhibit lifestyle displays in a live atmosphere. The store has an array of brands in kitchenware and bed linen from India and abroad. December 2006: Launch of our first store in the city of Nawabs, Lucknow. Measuring approximately 53,000 sq. ft. and spread over three floors, it is the anchor store of the E-City Fun Republic Mall at Gomti Nagar. January 2007: Shopper's Stop Limited forays into airport retailing through a joint venture with The Nuance Group AG of Switzerland, which is the world's leading airport retailer. The company has bagged concessions for retail operations at the Terminal 1B Departure of the Mumbai Domestic Airport and the greenfield Bangalore International Airport for both domestic and international terminals.

THE CHRONICLE
18

Pvt Ltd. sign a Memorandum of Understanding to enter into a franchise arrangement for the ARGOS formats of catalogue and internet retailing, with Home Retail Group. Home Retail Group is UK's leading home and general merchandise retailer with sales of over 5.5 billion in the last financial year. April 2007: We opened our first store in Noida at 'The Great India Place' mall. This is Shoppers' Stop's fourth store in NCR. Spread over 54,000 sq. ft. of retail space, the look and feel of the store is refreshing. Spacious and uncluttered, it gives customers the ease to shop at their own pace. The interiors are minimalist and contemporary. Light colours, brushed steel and glass with show windows along the periphery are the highlights of the store. Priority is given to customer convenience with kids' play area, babies nursery, alteration desk, large cashiering banks and customer friendly signage. July 2007: We opened our twenty-second store of Shoppers' Stop in the country and the second store in Delhi at Raja Garden. This new Shoppers' Stop store is the largest department store in the country with a retail area of 1.35 lakh sq. ft and houses an overwhelming range of premium international and national brands.

THE CHRONICLE
19

MANAGEMENT STRUCTURE

20

B. S. Nagesh CCA & Managing Director

Govind Shrikhande CCA & Chief Executive Officer - Shoppers Stop

Andrew Levermore Chief Executive Officer - Hypercity

C. B. Navalkar CCA & Chief Financial Officer

Vivek Mathur CCA & Vice President E-Commerce & Corporate Planning

Harsimran Singh CCA & Chief People Officer

Arun Gupta CCA & Chief Technology Officer

Govind Shrikhande CCA & Chief Executive Officer

Salil Nair CCA & Director - B&M

S. Ranganathan CCA & Chief of Operations

C. K. Nair CCA & Business Head - Home Division

Sheetal Choksi CCA & Vice President - Marketing and Communications

Tanaya Mishra CCA & Head - Human Resources

Sanjay Chakravarthi CCA & Senior General Manager - Finance & Accounts

Sudhir Soundalgekar CCA & Senior General Manager - Projects

Devdas C. CCA & General Manager Distribution and Logistics

Ranjit Satyanath CCA & General Manager - Technology

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OUR POLICIES LEAVE

A. For Associates in the Services Office: Privilege Leave (PL) 21 days per year (for confirmed Associates) Casual Leave (CL) 5 days per year (for confirmed Associates) Maternity Leave (ML) 84 days (for all permanent confirmed female Associates) Special Leave 1/2 day on Birthdays and Marriage anniversaries (for permanent employees) Transfer Leave 10 days leave with pay Compensatory Off Can be availed if an Associate has worked on a paid holiday or a weekly-off: ! The Associate should have worked as per timings specified in the 'Policy on Flexi Working Hours'. ! Prior permission of the Function Head is required to avail the Compensatory off. ! The Compensatory off must be availed within 15 days or else it will lapse. ! Compensatory offs cannot be encashed ! Associates in Grade P4 & above are not eligible for Compensatory offs Notes:
! All leaves are calculated on financial year basis. ! Privilege Leave & Casual Leave cannot be clubbed. 22

OUR POLICIES

during the probation period. Should an associate need to work on any Saturday owing to certain exigencies he/she will not be entitled to any overtime.

Procedure for availing leave: Leave status of the Associate is maintained in HRIS. a. Casual Leave: ! Casual Leave can be availed for a maximum of 2 days at a time. ! The Associate needs to fill his/her leave and attendance details in the prescribed format and obtain prior approval from his/her Reporting Manager. ! In case of certain exigencies if an Associate needs to proceed on leave without prior approval, the Associate must inform the Reporting Manager and inform the reason for his/her absence. The Leave Form can be filled after the Associate has reported to work. ! Paid holidays/weekly offs will not be considered as Casual Leave if they fall within the period in which the Associate is availing the leave. b. Privilege Leave: ! Privilege Leave can be availed for a minimum of 3 days at a time. ! It is mandatory for all Associates to take a minimum of 15 days Privilege Leave every year. ! The leave can be availed in trenches mutually decided by the Associate and the Reporting Manager. ! The Associate must inform the Reporting Manager in the beginning of the financial year about his/her plans of availing leave. The Associate must mention the months in which he/she would like to avail leave. The dates can be firmed up

OUR POLICIES
23

while obtaining approval. ! Leave will be pro-rated for Associates who join the organization mid-year. ! Paid holidays/weekly offs will be considered as Privilege Leave if it falls within the period in which the Associate is availing the leave. c. Maternity Leave: ! Female Associates who are confirmed in the services of the organization are eligible for Maternity Leave ! Privilege leave can be clubbed with Maternity Leave. Excess leave availed will be considered as Leave without Pay. Prior approval of Reporting Manager is required. Leave Accumulation: ! Casual Leave: Any leave balance at the end of the financial year will lapse. ! Privilege Leave: All associates will be allowed to accumulate 6 days per year upto a maximum balance of 12 days. Any leaves over and above must be utilized during the course of the year, failing which the excess leave will lapse at the commencement of the new financial year. B. For Associates in the Units, Regional offices and Distribution Centres: Privilege Leave (PL) 25 per year (for permanent employees) 21 per year (for MT/RST); 21 per year for Trainee CCAs (Full time & Part time)

OUR POLICIES
24

Maternity Leave (ML) Special Leave Transfer Leave pay Compensatory Off

employees); 84 (for all permanent confirmed female employees) 1/2 day on Birthdays and Marriage anniversaries (for permanent employees) 10 days leave with Can be availed if employee has worked on a paid holiday/ weekly off, should be availed within 15 days or else will lapse (Associates in Grade P4 & above are not not eligible for Compensatory off)

OUR POLICIES

Note: ! All leaves are calculated on financial year basis. ! Privilege Leave & Casual Leave cannot be clubbed ! Employees are only entitled to Compensatory Off and Special leave during the probation period.

Procedure for availing leave: Leave status of the employee is maintained in HRIS. The Associate needs to fill in his leave and attendance details in the same and obtain an approval from his/her Reporting Manager prior to availing of the same. a. Privilege Leave: Paid holidays/weekly offs will be considered as Privilege Leave if it falls within the period in which the Associate is availing the leave. All Associates will be allowed to accumulate up to a maximum of 50 days of Privilege Leave at the rate of 25 days per year. Any leaves over and above 50 days needs to be utilized during the course of the financial year,

failing which, the excess leave will lapse at the commencement of the new financial year.

25

b. Casual Leave: Paid holidays/weekly offs will not be considered as Casual Leave if they fall within the period in which the Associate is availing the leave. Any leave balance at the end of the financial year would lapse.

LEAVE TRAVEL ASSISTANCE

Procedure for claiming Leave Travel Allowance (LTA): ! Only confirmed Associates who have completed one year of service in the organization are eligible to claim LTA. ! Associates must avail a minimum of 3 days Privilege leave. ! Quantum: 100% of the employee's monthly basic is payable for the month of December of the preceding calendar year.
For other benefits and any further clarifications: Contact your HR department

OUR POLICIES
26

FLEXI WORKING HOURS

Eligibility: ! All permanent Associates of Shoppers' Stop at the Services Office are covered under this policy. Policy ! Associates will have an option to come to work at any time from 8.00 am to 10.00 am and can leave anytime after 5.00 p.m provided he/she has put in a minimum of 9 hours ( Example: If an Associate comes in at 8.00 am then he/she can leave at 5.00 pm and similarly if an Associate reports to work at 10.00 am then he/she can leave at 07.00 pm or if he/she reports into work at 8.40 am the Associate must be present in the office till 5.40p.m) ! The Associate will have to put in a minimum of nine hours a day. He can decide what works best for him and the Company on a day to day basis after consultation with his immediate supervisor. ! The common hours of work for all will be 10 a.m to 5 p.m.- the two hours prior to 10 a.m. and the two hours following 5 p.m. being the flexible time ! Incase the Associate does not punch in or out then he/she will have to regularize the attendance ! If an Associate leaves or is on leave then he /she has to state the reason for the same (through leave application or attendance regularization) ! Monthly audits will be conducted by the HR department to see that all Associates are putting in nine hours of work. In case there are any discrepancies as well as late comings the same will be highlighted on a monthly basis to the Functional Heads by the Head of HR who will need to initiate necessary action as and when required

OUR POLICIES
27

MEDICAL REIMBURSEMENT
All permanent employees are eligible for medical reimbursement, effective from the date of joining of the employee.
Sr. N o. 1 2 3 4 G rade U / S1 / S2 / S3 P1 / P2 / P3 / P4 / P5 P6 A1 A2 A3 E ligibility 15,000 12,000 10,000 8,000 6,000

OUR POLICIES

Note:
! Medical reimbursements are calculated on financial year basis and are payable along-with monthly salary. ! Medical bills need to be submitted latest by the 20th of each month to avail of the benefit. ! The unclaimed amount will be paid through salary in the month of March, and will be taxable. For other benefits and any further clarifications: Contact your HR Department

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CONVEYANCE
All local conveyance claims can be made while on official work, as per the grade eligibility.
Sr. No. 1 2 Grade U (Unclassified) S1 / S2 / S3 / P1 Eligibility Com pany car/ Private Taxi AC

Com panycar/Private Taxi/ Rs.6.00per AC km (Car) Rs.6.00 per km (Car)/ Rs.3.00 per 2- ( km W heeler)/ Taxi Fare/Auto fare OR P2 / P3 / P4 / P5 / P6 A uto/ axi to neareststationand I class rail T fare thereafter Taxi / Auto fare OR Taxi/ Auto to near est station and class rail fare thereaft I er/ A1 / A2 / A3 Rs.3.00 per km2-W heeler) ( Bus fare/ Second class fare/ M onthly pass DSS for regular travelers (Auto in case of urgency)

OUR POLICIES
29

Note: ! A petty cash voucher along with a local conveyance statement (available with Accounts dept.) should be duly filled in and authorised by the immediate supervisor or a Department head. The authorising official should be in grade P5 or above. ! All claims should be made within a week of incurring the expenses. For other benefits and any further clarifications: Contact your HR Department

LUNCH & DINNER ALLOWANCE

Lunch allowance can be claimed by an employee, if he/she leaves for any official work after 12 noon and returns back to office after 4.00 p.m. as per grade eligibility provided below. Dinner allowance can be claimed when an employee is required to stay back in office/unit after 9.00 p.m. for an official purpose and has worked for an extra 2 hours after the end of his/her regular shift. The following amount can be reimbursed as per the grade eligibility.
Sr. No. Grade U (Unclassified) S1 / S2 / S3 / P1 / P2 P3 / P4 / P5 / P6 A1 / A2 / A3 DSS Maximum limit of reimbursement Actual against bills Actual against bills Actual or Rs. 200/- whichever is less Actual or Rs. 100/- whichever is less Actual or Rs 75/ - whichever is less

OUR POLICIES
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1 2 3 4 5

Note: ! A petty cash voucher should be filled and authorized by the Immediate Supervisor or the Function head.. ! The authorising official should be at the minimal grade of P5. For other benefits and any further clarifications: Contact your HR Department

OUT-STATION EXPENSES
If a regular employee on the rolls of SSL travels for an official work away from his/her place of work, he/she is eligible for traveling and hotel expenses depending on the following classification as his/her grade eligibility.
Grade Traveling Fare Hotel Exp. (Incl. Taxes) City/ Class Hote l A+ Economy Air / AC I Rail A B C Lodging Exp. /Private Accommodat ion A+/A B C Loca l Trave l Food Allowance Misc

U (Unc lassified)

5 Star Hotel

650

500

400

Actual

Actual

400

S1 / S2 / S3 / P1

Economy Air /AC I Rail Economy Air / AC II Rail

5 Star Hotel

500

400

300

Actual

Actual

300

OUR POLICIES

P2 / P3

5200

4000

3300

2000

400

325

250

Actual / taxi

Actual

250

P4 / P5 / P6

Economy Air /AC II Rail

3500

3300

2500

1800

250

200

150

Actual/ Taxi

Upto 20% of Actual lodging bill or Rs.200 /Whichever is higher

150

A1 / A2

AC II Rail

3200

2700

2000

1500

250

200

150

Actual Auto / Taxi

Upto 20% of Actual lodging bill or Rs.150 /Whichever is higher

125

A3

First Class / AC II Rail Whichever is higher

2000

1800

1500

1000

250

200

150

Actual Auto/ Taxi

Upto 20% of Actual Lodging b ill or Rs.150 /whichever is higher

100

Staff / Con tractual

Second Class Rail

1200

1000

800

500

200

150

125

Auto/ Bus

125

50

* - Key to classification of Cities: A+: Mumbai / Delhi / Bangalore

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OUR POLICIES
32

A: Kolkata / Chennai / Hyderabad /Pune /Ahmedabad B: Other state capitals C: All other cities ! Car pick-up is only for associates in grade P1 and above. ! Air travel is only for Associates in grade P6 and above (Not applicable for support functions Projects, Store Planning, Business development, IT etc). In emergency cases, Head HR or Head - Finance can sanction the same ! When required to stay overnight on tour, Associates must stay in the company guesthouse wherever available. In the absence of such guesthouse the Associate can stay in a hotel as per eligibility ! Any exceptions to be sanctioned by Functional Head in consultation with Head HR
For other benefits and any further clarifications: Contact your HR Department

DEPUTATION
When the employee is required to stay in a location apart from his/her normal work place for 15 days and above, he/she is considered to be on deputation. While on deputation, an employee shall be eligible for the flat daily amount as per grade eligibility.
Grade S1 / S2 / S3 / P1 P2 / P3 / P4 / P5 / P6 / A1 / A2 / A3 DSS Amount (per day)

Rs. 250 /Rs. 200 /-

OUR POLICIES

Rs.150 /-

Note:
! During the period of deputation, an employee will be required to stay at the company guest-house and therefore various allowances like, lodging, hotel, miscellaneous and boarding allowances will not be paid to the employee. ! In respect of local conveyance in the city of deputation, conveyance rules will apply. ! No other benefits as per travel rules except for the amount specified above will be paid.

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DISCOUNT COUPONS
Every permanent & confirmed employee is entitled to discount on garments and accessories on producing his discount coupons.
Sr No. 01 02 03 04 05 06 Grade Slab U / S1 / S2 / S3 / P1 P2 / P3 / P4 P5 / P6 A1 / A2 / A3 DSS Part Timers Eligibility Rs. 60, 000 /Rs. 50, 000 /Rs. 48, 000 /Rs. 36, 000 /Rs. 24,000/Rs. 12,000/-

OUR POLICIES

The discount rates applicable on different categories of merchandise are:

Merchand ise Own Label (All Produ cts) Brands Non App arels Discount 25% 15% 10%

Note:
! Exclusions would cover fine jewellery and mobile phones ! The above discounts are not valid for merchandise on sale / discount ! Only Associates joining on or before the 15th of a month can avail of that particular month's discount. ! The rates of discount applicable on different categories might change at discretion of Shoppers' Stop ! The coupons can be collected from the HR department. ! The coupons are disbursed on a pro-rata basis every six months and the quantum of 1st half can be carried forward to the next half of the same financial year. However, if the coupons are not availed of within the financial year, the benefit for that particular year lapses. For other benefits and any further clarifications: Contact your HR Department

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GROOMING STANDARDS
Services Office ! Men and women should be dressed in smart casuals. Tie is not compulsory ! Denims / Jeans / T-Shirts with collars and sneakers are allowed only on Fridays Unit Offices: ! Men and women should be dressed in formals. ! For both Men and Women Denims / Jeans / T-Shirts and sneakers are not allowed.

OUR POLICIES

In all instances where Service Office and Unit Office personnel interact with the customer or go on the floor as a representative of SSL, they should ensure that they are formally dressed (i.e. formal dress with ties for Men and Western/Formal dress for Women). For CCAs: Men & Women ! Prescribed uniform ! Uniform to be clean, neat, ironed and un-torn with no buttons missing ! Full sleeves should not be folded up and must be buttoned ! Carry a pen at all times ! Shoes to be neat and polished ! Perfumes, deodorants should be worn to ensure no body odours ! No chewing gum / eating on the floor ! I-card to be worn at all times

35

Women Specifically ! Black socks or flesh coloured stockings may be worn, if desired ! Hair should be combed neatly or tied up if they are longer than shoulder length ! Modest hair accessories in colour of black, white or metallic only can be worn ! Jewellery to be modest; glass bangles, chokers, dangling earrings are not allowed ! Nails should be trimmed, shaped and clean. Nail enamel can be worn, but should not be partially chipped off ! Light makeup, i.e., lipstick and eye make-up is a must

OUR POLICIES
36

Men Specifically ! Black socks and black belt ! Hair neatly combed, length not to touch the collar ! Accessories to be modest, i.e., not flashy, single ring on each hand allowed, earrings not allowed Note:
Except for the uniforms, all the above points on grooming standards are also applicable to Department Managers, Service Managers, Retail Operations Managers and Unit Heads.

OTHER BENEFITS
1. Service award: Every permanent employee of the Company who completes 3 full years of service is entitled to a Service Award equivalent to 1.5 times his/her current basic salary. 2. Gratuity: Is payable to all employees on completion of 5 full years of service in the organization and is payable when the employee leaves the Company. All permanent employees are eligible to a Gratuity amount equivalent to 15 days salary per year of service. The formula: 15/26 * Basic * No. of years of service. 3. Bonus: All confirmed employees of SSL are eligible for an annual bonus equivalent to 8.33% of the earned basic in the previous financial year. This is payable in the month of October. 4. ESI (Employee State Insurance): The Employee State Insurance is a social security scheme extended by the Government of India. This scheme is extended to employees whose salary is upto Rs.10,000/- per month (Basic + Allowances). Under the scheme the employer contributes 4.75% of salary and employees contribute 1.75% of salary per month. Employees can avail medical facilities for self, spouse, children and dependent parents at the allotted dispensaries and Hospitals. 5. Benefits for the Employees meeting with an accident arising out of and in the course of Employment Benefits: a. Reimbursement of Medical expenses upto Rs 5000/- or actuals whichever is less (on production of medical bills and certificate of fitness) on approval by Unit HR Head & the Unit Head. The reimbursement can be claimed through a voucher. b. 15 Days 'Special leave' with pay if employee is undergoing

OUR POLICIES

37

medical treatment. c. Any accident requiring total benefits beyond Rs. 5000/- or total special leave of more than 15 days can be considered, provided Head HR in Service Office approves it. The total amount can be claimed through a voucher approved by Head HR in Service Office. Eligibility: All regular employees of the organization are covered for accident "arising out of and in the course of employment". Note: Employees covered under the ESIC are not covered under this policy as the similar benefit is available to those who are covered under ESIC. 6. Provident fund: PF @ 12% of Basic salary is contributed every month by the company to the employees provident fund account apart from the 12% contributed by the employee every month. 7. Benevolent loan: Benefits: ! Quantum: Interest free loan of Rs. 15000/- or an amount equivalent to 5 times of basic monthly salary, whichever is lower. ! Recovery: The loan amount would be recovered in 12 equal installments with the deduction starting from the month succeeding the month of approval of the loan. Eligibility: ! All regular employees confirmed in the services of the organization are covered under this policy. ! Spouse, Children and dependent parents for hospitalization expenses. ! Loan needed for Marriage of Self and dependent children. Procedure:

OUR POLICIES

38

! The employee will have to submit a written application in the

specified format to the Unit HR Head in the Unit and to Head HR in case of Services Office. ! An employee can avail the loan through a voucher (in case of cash payment) by mentioning the reason as 'Benevolent Loan'. The voucher needs to be routed through the Unit Head in case of Units and the Function Head in case of SO and needs to be approved by Head HR 8. Life Insurance: SSL provides for a Life Insurance cover for all its regular employees through Tata AIG. Benefits: There are four benefits under this scheme: ! Total & Partial Permanent Disability Benefit ! Total Disability and Total Permanent Disability and ! Partial Permanent Disability and benefits payable ! Death Eligibility: ! All regular employees in the services of the organization are covered under this policy. ! The compensation under the main benefit is provided in the event of unfortunate disability or death. 9. Employee loan: SSL has an agreement with financial institutions to provide assistance to employees with respect to personal and home loans. The procedure for availing the same will be as specified by the Bank / Institution. For any further clarifications: Contact your HR Department. 10. Salary advances: All confirmed permanent employees of Shoppers' Stop Ltd. are eligible for this benefit. An employee can withdraw 50% of basic salary in case of emergency. The disbursed money shall be deducted from the coming month's salary. 11. Performance Linked Reward Scheme (PLRS): It is applicable to all the employees on the rolls of Shoppers' Stop

OUR POLICIES
39

Ltd., including Trainees. Benefits: ! Instills the feeling of ownership and performance in every Associate. Points to note: ! The Reward shall be paid along with the salary for the month following the end of PLRS period. ! The PLRS is subject to amendment, suspension or withdrawal at any future date as decided by the management. ! The PLRS is part of the salary of an employee. ! The management reserves the right to pay / not pay any particular employee or employees belonging to a particular grade or role ! The tenure of PLRS period can vary from time to time as the management feels fit. ! For any reason mentioned in the Annexure I, the management reserves the right to Not to Pay or To Pay Full or on pro-rata. ! The reward shall be paid subject to auditing of target achievements and deductions of TDS.

OUR POLICIES

Annexure I
The following table lists the payout of PLRS under various contingencies:
Contingency Resignation Employees joining during the middle of performance cycle Maternity Leave / Special leave / PL / Authorized LWP (in excess of 20 days). No Payment Pro-rata provided that at least 1 month has been completed in the cycle for PLRS. No Payment Amount of Reward

40

Transfer Unauthorized Leave for more than 3 days

Pro rata Not eligible for that Performance Cycle

41

WHISTLE BLOWER POLICY

Objective: ! To build and strengthen a culture of transparency and trust in the organization. ! To eliminate malpractices in the system. ! To encourage employees to report without any fear of retaliation : + instances of wrong doing + misuse of company's properties + mismanagement / wrongful conduct prevailing in the company (Associates in good faith believe evidences - Violation of Law or regulation / Financial Malpractices / danger to public health or safety) Eligibility: ! All employees of the Company are eligible to make Protected Disclosures under the Policy. ! Protected Disclosures should preferably be reported in writing or orally by leaving a voice mail ! The Chairman of the Audit Committee will acknowledge receipt all the emails / voice mail transcriptions within 7 days Role of a whistle blower: ! The Whistle Blower's role is that of a reporting party with reliable information ! The Whistle Blower is not : + required to act as investigators + act on their own in conducting any investigative activities + to participate in any investigative activities ! Not to determine the appropriate corrective or remedial action that may be warranted in a given case. Protection to a whistle blower:

OUR POLICIES

! No unfair treatment will be meted out to a Whistle Blower by 41

OUR POLICIES
42

virtue of having reported a Protected Disclosure under this Policy. ! Complete protection will be given to Whistle Blowers against any unfair practice like retaliation, threat or intimidation of termination / suspension of service, disciplinary action, transfer, demotion, refusal of promotion. Process: Step 1: Employee reports a wrong doing by making a Protected Disclosure. Step 2: Investigation of the Protected Disclosure by the Ethics Counsellor / Chairman of the Audit Committee of the Company. Step 3: Decision - The Ethics Counsellor / Chairman of the Audit Committee shall recommend to the Management of the Company to take such disciplinary or corrective action in accordance with the applicable procedures. The contact details: Chairman of the Audit Committee: Mr. Deepak Ghaisas Ethics Counsellor: Ms. Jitika Punjabi Email Id : chairmanauditcommittee@shoppersstop.co.in Ethics Hotline toll free: 1800225859 during working hours on all working days Ethics Hotline Mobile : 9324173025

OUR FUNCTIONS AND THEIR RESPONSIBILITIES

Buying & Merchandising - is an important function, in which the team plans and procures product offering for our customers. They are responsible for ensuring product availability for the customers in the styles and designs desired by the customers on time. The B&M team works closely with the operations, store planning, marketing and visual merchandising teams and influence the marketing and presentation plans. The B&M function works on two seasons (Spring-Summer and Autumn-Winter). Each season is broken down into 6 periods with 26 weeks with planning and monitoring done at the weekly level. Based on market research / information, past performance analysis and forecasts for fashions and trends in the ensuing season, the B&M team plans the product range for all our stores. There are 5 teams who are responsible for delivering all merchandise needs of our customers. The teams are: 1. Men's 2. Ladies and Kids 3. Youth Fashion and Denims 4. Non-Apparels 5. Private Brands ! Financial Planning - The B&M team converts the corporate financial plan into divisional and department plans covering sales, margin, markdown and inventory. ! Range Planning - Range planning is where our teams decide how much to buy of each option, and when to put it on the shelves for the customer to pick up. This is derived from the financial plans formulated for each season, for each division and department. Our B&M team with the

OUR DEPARTMENTS

help of the
43

software can fine-tune the range for each store.

! Product Development and Ordering - Each Brand makes a

OUR DEPARTMENTS
44

Brand offering for the season. The merchandiser, based on trends and past data selects the range and places the order. For private label, we prepare the design brief for each season based on the trends and fashion forecasts. The design brief is converted into samples by our partner vendors, based on which we place the orders. ! In Season Management - We monitor actual performance of our merchandise against the plan on a weekly basis during the season, and accordingly decide on the short term strategy to be adopted. These include additional markdowns and special promotions, in excess of what had been initially budgeted. This may also require us to revise our plans, and also our purchase orders with our vendors, wherever possible. Buying This team is responsible for scanning the market for trends, fashion & Customer Buying Behavior on the basis of which they decide on the merchandise to be bought for a particular season. They are also responsible for the development of the private brands. As a part of their function they co-ordinate with the design team for Samples, Range Plan, with the Store Planning department for space allocations in the store and with the Marketing Department for the promotional activities of the various brands. They also co-ordinate with the Visual Merchandising department to create a visual presentation norm for their category in the store. Merchandising - They take care of Merchandise planning, analysis, allocation and availability of merchandise to each and every store. The department negotiates with the vendors for better margins and support on promotional activities for various products. They manage the inventory upto the budgeted levels.

They work in close conjunction with the buyers for markdown management. Our Private Brands - We have a strong focus on our in-store brands, which are also called Private Labels. These help us complement the product range that we receive from national and international brands and allow us to offer to our customer an enhanced range across price points. Design, Quality, Fits, Fabrics etc. has always been the top priority for the Brands. Private labels accounted for 21% of our sales in FY 2006-07. It is our endeavour to enhance the share of our private label portfolio in our total sales. Our Gift Vouchers - We also sell Gift Vouchers, which are purchased by our customers for gifting purposes. These Gift Vouchers can be used in any of our stores for purchase of merchandise or services. Various corporates have purchased our Gift Vouchers for their gifting purposes. Our arrangements with our vendors - We have various types of arrangements with our vendors for the merchandise they supply to us. These include: Bought Out Merchandise - We purchase the merchandise from the vendor under this arrangement, and hence own the inventory. All our private label products and some of the brands that we retail form part of this arrangement. Merchandise on Consignment Basis - Under this arrangement, the consignor remains the owner of the inventory. All unsold stock can be returned to the consignor, with our responsibility being limited to stock that may get damaged or lost while in our warehouses or stores. The consignor receives the payment for the merchandise only after it is sold.

OUR DEPARTMENTS
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OUR DEPARTMENTS
46

Other Arrangements In order to provide our customers with an enhanced range of products and services, which require specialized skills, we also enter into conducting and concessionaire arrangements. This also helps us mitigate our risks on inventory. Concessionaires - It is the responsibility of this department to identify customer needs that are not being presently met by Shoppers' Stop Ltd., identify successful partners in those categories and get them to operate from the retail environment. They also ensure the profitability of both i.e. the concessionaires and Shoppers' Stop Ltd. without comprising on the customer expectations. Conducting arrangements - These are arrangements with partners who occupy a part of our retail space, and in return pay us a conducting fee. The partner has its own billing and cash collection system, and independently manages its operations. The conducting fee that we receive from such arrangements is generally fixed as a percentage of our partner's revenues subject to a fixed minimum amount. Our conducting arrangements include those with Music World (Music), Planet M (Music), Bombay Blues (restaurant), Barista (coffee shop), Damas (gold shop), Build-A-Bear etc. Design - The core of entire private label business, this team is responsible for the conceptualization to the designing of apparel for all the SSL brands. The team ensures the right balance of fashion & customer need while designing the looks. The team is sub-divided into categories like Menswear (Classic/Fashion/Ethnic), Ladies (Classic/Fashion/ethnic) and Kids wear. Fashion forecast and the collection are presented for every Spring Summer & Autumn Winter season. The Design Team also takes care of the visual imagery of each SSL private brand by creating the story boards for the seasonal photo shoot.

Quality Assurance - ensures the quality of the products and set the quality standards and process for the merchandise. They are involved in vendor evaluation, selection & monitoring. They audit the vendor in different stages of manufacturing & finished goods to assure the compliance to standards. They are also responsible for defining Quality Assurance procedure with respect to testing, inspection, tolerance, sampling plan & communication formats is a part of the responsibility of the Quality Assurance. As an ongoing mechanism they are also involved in the analysis of customer complaint to prevent recurrence.

OUR DEPARTMENTS

Distribution & Logistics - A function without which chaos and confusion will prevail as this Department ensures that each and every store receives merchandise tagged, is in a saleable condition, is made available on time, and as soon as the requisition is placed be it any season of the year. The responsibility of this department doesn't end at that. They also manage the reverse Logistics process i.e. to monitor the movement of goods against the invoiced quantity, return the excess, defective and consignment stock back to the vendors while tallying the same with the vendors and the accounts Department. The D&L team ensures that the right goods are available at the right place at the right time, in the right quantities at the lowest possible cost. We have Regional Distribution Centers, one each in Mumbai, Delhi, Bangalore and Kolkatta and have tied up with CFA's of repute with strengths in Regional logistics, people, space, finance and vision. D&L Department also handles the imports in totality.

Central Merchandising - The Central merchandising team plays an integral role in the delivery of the company's Buying and Merchandising processes. It tracks the performance across product categories through information available, analysis and 47

control. They are specifically responsible for managing the store planning process taking in the inputs from Retail Operations and Buying and Merchandising. This Department is also responsible for seasonal Budgeting and Markdown activity. This department has implemented Phase-1 of Arthur Planning based Merchandise Strategic Planning System called FM WSSI (Financial Management Weekly Sales Stock and Intake). The system supports merchandise planning i.e. projecting and fixing plans at chain, sub-department, stock ID and week level. Corporate Planning - The Corporate Planning Department works with the Group Management on various aspects of strategic development for the Group across all retail formats and brands, including planning, implementation and performance management. Corporate Planning also drives the development of alliances with international retailers and brands, which can potentially accelerate the group's entry and growth into new business formats. Shoppers Stop's partnerships with Mothercare (UK), The Nuance Group (Switzerland) and Argos (UK) have been supported by the Corporate Planning team in the recent past. The department also manages customer service quality measurements for group formats including customer satisfaction surveys and mystery shopper programmes. Current initiatives being driven by Corporate Planning include e- commerce, analytics, and integration of customer touchpoints across various group formats. Marketing and Communication - They are responsible for building the brand Shoppers Stop and keeping it "Top of Mind" in the minds of the consumer. They build preference for the brand in the competitive environment by designing and executing differentiated promotion, brand advertising as well as creating
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OUR DEPARTMENTS

credibility for the company through effective public relations. They are also responsible for creating an emotional connect with the consumer through local level and regional events. This team also works very closely with the Visual Merchandising team to ensure that there are complete synergies between what is communicated to the consumer outside the store is the same within. They along with the operations team work towards for creating moments of magic for the customer. Loyalty: The First Citizen program is one of the oldest loyalty programs in the country today. It is the largest retail loyalty program in the country - A loyalty program which has swelled the number of our loyal customers, day after day, month after month and year after year. The Origin: Conventional marketing wisdom supported by research suggests that: ! Cost of acquiring a new customer is 5 times more than retaining one ! Chances of selling to existing customer is 1:2, as against to a prospect 1:16. ! Customers switching brands because of no contact from the company: 61 % ! Number of people to whom one unhappy customer communicates his dissatisfaction: 9 The First Citizen program today contributes to 63% of the company's turnover and our loyal customer base has grown to a strength of 7 lakhs at last count. The management of the loyalty program is a complex task. The primary objectives are as follows:1. Retaining satisfied, happy and high potential customers Loyal customers are a source of competitive

OUR DEPARTMENTS
49

advantage in the face of increased competition. The primary task of the program is to identify, engage, retain and grow our loyal base year on year. To do this, each segment manager must needs look at complex data analysis to identify customer clusters and devise different customer engagement programs depending on the needs of the particular cluster. The engagement program then translates into a segment communication exercise which is undertaken using one of the vehicles of Direct Marketing and deployed. The best part is that clear results can be measured every time for every activity that is undertaken. 2. The First Citizen desk manages the interaction of members at the front-end. They are the face of the loyalty program and they along-with other Associates on the floor deliver the moment of truth. A key function of the loyalty team is to ensure that these Associates are provided with adequate information and support to help them serve members better. Support ranges from providing the right kind of literature to them to generate acquisitions, providing inputs for resolution of customer issues as well as adequate training to keep them motivated and fully geared up to understand customer requirements, 3. Knowledge is power A loyalty program is supported by a strong database which helps us map customers buying behaviour and preferences and extrapolate that to try and predict future customer behaviour, Managing this database is a key function in the loyalty program management at the Services Office along with support from the Sol-tech team. Institutional Business - The department focuses on future guaranteed sales for SSL. This is done through the Gift Vouchers that are sold to individuals and corporates and also includes redemption partners who contribute to the business. On the retail level customers buy Gift Vouchers for personal

OUR DEPARTMENTS
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gifting like birthdays, marriages etc. On a corporate level Gift Vouchers are bought for incentive programs, Rewards & Recognition programs and during festive periods like Diwali & New Year as this is the time most corporates gift their clients and business partners. The business has been growing at a pace of 40% year on year in terms of achievement. Apart for assuring future sales, Gift Voucher aids walk-ins to the Units and also help in an increased cash memo size over the value of the Gift Voucher thus contributing to the Units' sales. The IB team is represented by IB Sales Officers at the Units who make presentations to corporates in their regions and achieve bulk bookings for Gift vouchers or Corporate Merchandise. Major contributors to the business are Financial Institutions, IT & ITES, Call Centers & BPOs, Insurance and FMCG organizations. Visual Merchandising- is the way we want our products and services to look and feel to maximize sales. The team creates, organizes, and sustains the vital communication between brand & consumer, from events to window displays and in-store focal points. As a "silent salesperson" and "vanguard of standards", the members of the team collaborate closely with the buyers, merchandisers, designers, store planners, and operations team. Business Development - This department has first sighted all the new stores that Shoppers' Stop Ltd. is in now. The main role of this department is to spear head the expansions of Shopper's Stop Ltd. It identifies new markets and taps potential of these markets after doing a thorough analysis of the city/ locations. They assess the acquisition plan of the opportunity after evaluating finer parameters that will give Shoppers' Stop Ltd. the cutting edge vis-a-vis customer satisfaction and competition

OUR DEPARTMENTS

e.g. ideal location in particular city / location. They do a complete

51

financial feasibility of a project and negotiate with the property owner. They are the one point contact with the property developer and all other departments of Shoppers' Stop Ltd.. It is the responsibility of this department to ensure and safeguard the interest of Shoppers' Stop Ltd. by ensuring delivery of the project and complete legal documentation and compliance through the associate departments including store planning, projects and legal teams.. Projects: are the creators of the Shoppers Stop & Specialty stores pan India which offer customers excellent shopping experience in great ambience. They ensure the entire construction of interior dcor, installation of fixtures, signage, services like air-conditioning, lighting and fire fighting with Project Management skills. They coordinate with the empanelled external business associates such as architects, consultants, vendors to fulfill the desired dream of a store. They also track project expenses against approved budgets, ensure procurements, vendor payments, audit compliances & ensure proper value engineering. The Projects team is also responsible for controlling air-conditioning, electrical, firefighting, operations, energy conservation & maintenance activities in conformance with statutory requirements. Store Planning: The Store Planning Team designs new stores in terms of their 'look & feel' and overall ambience as well as plan renovations in the existing stores as per the requirements from B&M and Operations. They design the visible elements in the stores, such as, flooring, wall coverings, ceiling, lighting, store fixtures, wall display panels, brandings, signage and visual spaces. They also design of invisible elements in the stores, such as, air-conditioning, electrical, fire- fighting and prevention systems and security systems. It plans and plots different categories, brands with their respective adjacencies in a floor

OUR DEPARTMENTS
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layout. They co-ordinate with brands' design teams for brand fixtures and fit-outs, and help the Projects team to set-up the stores at the time of hand-over. They, along with B&M team, develop new design concepts for new business models. Finance and Accounts - They ensure there is adequate cash flow & monitor the funding needs of the organisation besides ensuring that Profit and Loss Account and the Balance Sheet reflect the true and fair picture of the organization. This team is also responsible for all statutory and internal audits of the company. Besides management of the company's assets, they are responsible for capital and asset accounting, revenue generation and accounting, expenses incurred, ensuring compliance with various statutory requirements relating to corporate entities, and are in charge of the over all financial control of the company. Budgetary control of the company's income and expenses is also a key area for this team. That apart, they also scrutinise the financing of new projects/units. Legal and Secretarial: This department provides support for drafting and vetting of various agreements and other documents in respect of smooth operation of the stores and take adequate steps for protecting the intellectual property of the Company. They work closely with all functions for compliance of various legal formalities required in the company. The department also handles the secretarial work in respect of Board of Directors, Shareholders Meetings, ESOPs, and compliance of various laws and Corporate Governance requirements. Human Resources The people of an organisation are its source of sustained competitive advantage. The Human Resources function in Shoppers' Stop is responsible for this most important and dynamic asset of the Organization People. This team is responsible for an individual throughout his journey within the

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organisation. The function seeks to maximise organisational productivity through optimal management of people resources. Through effective and innovative practices in associate recruitment and selection, learning and development, reward and recognition, compensation and associate engagement, the function seeks to create a work environment which is truly "Nothing but The Best", and seeks to make Shoppers' Stop truly a great place to work. Administration - This function is responsible for co-ordinating timely and effective office and administrative support services at the Services Office and at the stores. Key responsibilities include housekeeping and security, printing and stationery, statutory compliances, travel arrangements, postage and courier, telephone connections, cafeteria and other day to day administrative requirements and support. Solutions & Technology Team (STT) - To provide the group companies with technology solutions aligned to business requirements, STT endeavours to contribute to the strategic direction of the Enterprise. The world class solutions offered deliver business value by addressing the transactional needs and operational efficiencies. We will provide enterprise-wide competitive advantage with new and emerging technologies while partnering with vendors to outsource non-core activities. We will collaborate with the business to serve our customers better and create an experience that sets benchmark for the industry.

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All these teams operate from the Services Office.

Units
Our stores are where we deliver to our customers the Shoppers' Stop experience. Hence our store operations are one of our most critical functions. Our processes are designed to ensure that each aspect of the stores' functioning adds up to delight the customer and reinforce the Shoppers' Stop brand. Each of our stores is headed by a Unit Head, reporting to the Area / Regional Controller who looks after a group of stores. The Unit Head is responsible for the day to day operations of the store and is assisted by a team comprising of retail as well as back office personnel The retail team consists of the ROMs, SMs, DMs and CCAs and is responsible for sales and for ensuring great customer service. The back office team comprises of support functions such as administration, security and house keeping and store level representatives of corporate functions such as Human Resource, Marketing, Visual Merchandising and Accounts and Finance. The corporate functions executives report to both the Unit Head as well as the functional head at the Services / Corporate office to ensure perfect synchronization.

UNIT STRUCTURE
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Unit Structure
Unit Head / Retail Manager Receiving Bay In-Charge Retail Operations Manager Department Manager Customer Care Associates

Cashier Service Manager First Citizen / Customer Service Desk

UNIT STRUCTURE

Unit Co-ordinator

Unit HR Head

Unit Admin. / Maint. / Sec. Head

Receptionist & Telephone Operator

Unit Marketing Head

Unit Visual Merchandiser

Executive - IB Sales Executive - Accounts Unit Accounts Head Cash Assistant

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1.

2.

3.

4.

5.

6.

7.

Unit Head / Retail Manager: Topmost authority in the unit, responsible for the topline growth, store process & audit, improving service standards leading people, improving profitability and resource management strategies for increasing sales, budgeting & control and is responsible for the overall store image. He/she reports to the Area / Regional Controller. Retail Operations Manager (ROM): reports to the Unit Head and is responsible for customer feedback analysis, competition mapping, manpower availability and shrinkage control. Department Manager (DM): reports to the ROM and is responsible for setting the floor, manpower planning, inventory management, achieving sales objectives, team management & shrinkage control. Unit HR Head: reports to the Unit Head and is responsible manpower planning, recruitment selection & induction, training and development, performance management, handling employee grievances, employee communication & policy implementation, welfare activities and ensuring all statutory compliances are adhered to. Unit Admin & Security Head: reports to the Unit Head and is responsible for smooth functioning of the housekeeping activities, security, and reception, for purchase of non- trading items, maintaining fixed assets and sale of scrap & fixed assets as and when the need arises and to ensure all statutory compliances with respect to housekeeping, security and administration departments are met. Unit Maintenance Head: reports to the Unit Head and responsible for equipment, fixture, building, preventive maintenance, snag analysis & rectification planning, vendor development and energy conservation. Unit Visual Merchandising Head: reports to the Unit Head and responsible for visual presentation of store, focal points 57

UNIT STRUCTURE

8.

9.

10.

11.

12. 13. 14.

15.

& windows, events, and cost and vendor management. Unit Marketing Head: reports to the Unit Head and is responsible execution of all events, promotions & schemes, getting tie ups for store promotions and catchments area study. Unit Co-ordinator: reports to the Unit Head is responsible for maintenance of office reports, document creation, updation of Infozone, monthly reports and collation of sales data. Executive - Institutional Business Sales: reports to the Unit Head and is responsible for the achievement of corporate sales target in the region allocated for the sale of gift vouchers and corporate merchandise within budgeted discounts. Unit Accounts Head: reports to the Unit Head and is responsible for all the monetary transaction in the store, proper accounting for scheme recoveries, revenue control, proper accounting of concessionaire dues, Sales Tax payment, Statutory compliance, PICS controls and documentation, Inter branch reconciliation with Services Office, control function and coordinating internal audits Executive - Accounts: reports to the Unit Accounts Head and assists him / her in all the activities related to the accounts function in the Unit. Cash Assistant: reports to the Unit Accounts Head and is responsible for the monetary transaction in the store. Receiving Bay In-charge: reports to the Service Manager / ROM and is responsible for the entire movement of stocks in and out of the system and raising inter-branch transfers. Customer Care Associate (CCA): reports to the DM and is responsible for section maintenance, stacking, merchandise arrangement, attending customers, sales presentation, sales, stock take, and global count.

UNIT STRUCTURE
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16. First Citizen Desk (FCD) - This desk performs the following functions at the shop floor: a. Timely issue of First Citizen cards to members b. Redemption of First Citizen promotions c. Managing activities related to First Citizen promotions d. Solving queries and complaints of First Citizen customers 17. Customer Service Desk (CSD): This desk performs the following functions at the shop floor: a. Exchanges of merchandise (provided the exchange policy is satisfied) brought in by the customers and delivery of the same. b. Alteration of garments with the help of tailoring staff and delivery of the same. c. Gift wrapping of merchandise d. Solving queries and complaints of the customers if any.

UNIT STRUCTURE
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COMMONLY USED TERMS IN RETAIL

1. 2. Aisle: Is the circulation space for the customer. All fixtures / merchandise is presented beyond the black line that defines the aisle Associate Satisfaction Index (ASI): This is a measure of the level of satisfaction that our employees derive while working with us. Assortment: The range of choices offered to the customers within a particular classification of merchandise, planned to various depths of inventory to meet customer demand. Brands: Every merchandise belongs to some or the other vendor who has a name that distinguishes him from others which is his identity. This name is known as a Brand. Cash - memo size / ticket size: The total sales value in a day divided by the number of cash memos generated for the day. Concessionaire Non-returnable gate pass (CNRGP): It is made when concessionaire merchandise or display item goes out of the store permanently either for customer delivery or back to the vendor and will not come back. It requires details of the merchandise, person carrying out of the store, date, times, store no. and signatures of individuals who prepares and receives the item, and needs to be initiated by a DM and authorized by the Unit Head, or in his absence by an ROM. Concessionaires: The arrangement with vendors wherein the stocks are not taken in our system and our liability on the stocks is the least. The vendor is fully liable for the stocks and we have no control in ordering or returning the stocks. The payment is made only for what has been sold in our stores. Consignment: The arrangement with vendors wherein the

COMMONLY USED TERMS IN RETAIL

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3.

4. 5. 6.

7.

8.

9. 10.

11. 12. 13.

14.

15.

16.

not sell. The payment is made only for what all has been sold out. We have no control in ordering or returning the stocks. The stocks are accounted for in our system. Conversion: The total cash memos generated for the day divided by the total customer entry for that day. Credit note: is issued by the Customer Service Desk (CSD). It is a receipt equivalent to the value of goods exchanged by the customer. The validity of the credit note is six months from the date of issue. A duplicate for credit note is not issued and same cannot be encashed. Customer Satisfaction Index (CSI): This is a measure of the level of satisfaction that the customer derives while shopping with us. Delivery Authorization (DA): A unique authorization number which authorizes the vendor to deliver merchandise against an existing valid purchase order Delivery Challan (DC): This is the document giving details of the PO against which goods have been delivered, their quantity, date, value and the details of the supplier, with the challan number. Departments: Similar merchandise of various brands when consolidated form a department, which is further divided into sub department, class, sub class, etc in order to break a huge category and make it small and easy to assort.. Exchange Policy: The Shoppers' Stop exchange policy states that "We will accept exchanges within 14 days from the date of purchase on providing Proof Of Purchase (Cash memo) if the merchandise is returned undamaged and in saleable condition, except items made to order or items like cosmetics, jewelry, watches, sunglasses, lingerie. Undergarments and hosiery, which cannot be exchanged for hygiene reasons". Focal Point: The focal point is a generic term that refers to any place in the retail setting where emphasis has been 61

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17.

COMMONLY USED TERMS IN RETAIL

18. 19.

20. 21.

22.

23. 24.

25.
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placed to attract the shopper. They are generally positioned close to the aisle and act as signposts for each department. It can be an area on a rear wall that has been painted a strong colour against a welllit armoire or fixture / furniture or a furniture arrangement with featured merchandise to go with it. Gandola / Browser: Fixtures used to hang and display the merchandise. Gate Pass (GP): It is to be made at the checkpoint when anyone or any merchandise enters or exits the store. Gift Voucher (GV): This is a voucher issued from the FC desk in different denominations of Rs. 50, 100, 500, 1000, 2000 and is used for gifting purpose. It can be redeemed for any purchase of same or higher value. Its validity is one year. There can be no cash return for the GV. Gross margin return on floor (GMROF): The rate of return derived from the investment in the floor space. Formula: Gross Margin / Space in sq. ft. Gross margin return on floor (GMROL): The rate of return derived from the investment in labour. Formula: Gross Margin / Total number the floor/section Gross margin return on investment (GMROI): The rate of return derived from the investment in inventory. GMROI measures the efficiency of merchandise investment at cost. Formula: Gross margin / Average inventory at cost Gross Margin: The difference between MRP and the total cost of merchandise sold Hard Tag: Cream security tags plugged on to the merchandise to avoid shoplifting. The beep as soon as the merchandise is brought near the sensomatic sensors at the exit points Hit: Loss borne by the store due to reasons like SAV,

26.

27.

28.

29.

30.

31. 32. 33. 34.

In-house Brands: These are the brands whose merchandise are exclusively sold only in Shoppers' Stop. E.g. Stop, Kashish, Life, Haute Curry, Mario Zegnotti, Eliza Donatein, Austin Reed, Vittorio Frattini, Acropolis, Pret Line, etc. Inventory turnover: The number of times within a specific period of time that an average inventory is sold and replaced. It is normally calculated annually, but maybe determined for any given period of time. JDA: is an ERP system of J.D. Armstrong Software TM Groups' In-Store Systems development team based in Phoenix, Arizona. Another products from the IN-Store Systems group is DSS, which is the Distributed Stores end on POS machines for selling, and is operated by the Retail Operations team. Mannequins: They are statues or standees used to display the garments and merchandise on them and are placed at focal points. The different types of mannequins are miniature, standing, sitting and bust. Mark Down: A reduction in the retail price of the merchandise expressed as a percentage. Markdowns include allowances and sales discounts. This is generally done at the end of the season to clear the left over merchandise Mark Up: An upward revision of the original or initial selling price, resulting in a higher selling price expressed as percentage. It is calculated to arrive at an MRP value. Maximum Retail Price (MRP): This is the highest price printed that one can charge the customer for a particular merchandise Membership Level: There are three levels of memberships to the First Citizens Club: Classic, Silver and Gold. Merchandise Management System (MMS): It is part of JDA software group, an ERP system. It is a backend for WinDSS and is used for inventory and merchandise management. It can be used by personnel for Distribution & 63

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Logistics and Buying & Merchandising. 35. Merchandise: The goods or products offered to customers for sale. Could be garments, bags, shoes, watches, cameras, cosmetics, jewelry, etc. 36. Merchandising: The profitable planning, acquisition and distribution of an inventory. 37. Mystery Shoppers: They are our regular customers who are nominated by us to come on surprise shopping visit to our store and evaluate our staff on criteria such as grooming, approaching, greeting and attending to customers, politeness, courtesy, product knowledge, convincing ability, stock availability and attention. They give scores to the staff who have interacted with them and also on the store ambience, cleanliness and staff availability. All this together forms the mystery shopper scores. 38. Non-returnable gate pass (NRGP): It is made when any merchandise or display item goes out of the store permanently either for customer delivery or back to the vendor and will not come back. It requires details of the merchandise, person carrying out of the store, date, times, store no. and signatures of the individuals who prepares and receives the item, and needs to be initiated by a DM and authorized by the Unit Head, or in his absence by an ROM. 39. Outright: The arrangement with vendor wherein we buy the stock and it becomes our liability to sell is called outright arrangement. We have control in ordering or returning the stocks. The payment is made first. The stocks are accounted in our system. 40. Period: Similar to a calendar year, we follow a retail calendar which starts in the end of March. The retail calendar is divided into four quarters, with each quarter having three periods. A quarter lasts 13 weeks, with 3 periods of 5 weeks, 4 weeks and 4 weeks respectively. A

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period starts on a Monday and ends on a Sunday. 41. Perpetual Inventory Count System (PICS): This means comparing the physical stock with the book stocks at regular intervals to control the inventories, pilferage or shrinkages. PICS philosophy is to have an accurate reflection of stock in the system at all times for better decision making. PIC is a year round, cyclical count of merchandise whereby the entire inventory is covered according to certain pre determined criteria. Objective of PICS: 1. To rectify the book figures of inventory on a continuous basis and match it with actual physical stock 2. To identify the extent of shrinkage and provide for it on a regular basis s that our Income Statement takes such shrinkage into account. 42. PICS Docket: After the stock take is over a document is to be prepared consisting of the pics checklist, the scanned SKU list, SKUs thrown, freezing and acceptance reports and the SKU variance report. This document is called the PICS docket. 43. Plannogram: The arrangement and placement of gondolas, fixtures, browser, counters, focal points, etc. are all based on a fixed layout or design made by the store planning department which needs to be followed and maintained. This layout is called a plannogram. 44. Post Void: A transaction, which is cancelled due to reasons like change of mind, wrong SKU, Scheme or Tender entered, etc. is called a post void. 45. Product Understanding of Customer Care Associate PUCCA: A module of training undertaken during induction of the freshers which guides them on the basic products, brands, sizes, options available with us, fabrics used on the manufacturing, technical knowledge of the products and a gist of all sections in brief.

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46. Purchase Order (PO): This is the contract document against which any manufacturer manufactures goods and awaits for the DA number for delivery of merchandise. Without the PO, no Merchandise can enter the DC. PO contains the details of Style / Quantity / Size / MRP / CP / SKU of merchandise that is ordered for delivery. It also guides the supplier in the delivery of the location and date. 47. Purchase return: A document sent for any transfer of merchandise from the Unit to the DC. The reasons for the return is when there are excess stocks possibly at the end of a season and the same need to be retained at the DC. 48. Retail Selling Skills (RSS): A module of training undertaken during induction of freshers which guides them on the process of selling and develops the tactics of selling in them. 49. Return To Vendor (RTV): A debit note document issued to the vendor from the DC when the merchandise delivered are defective, excess or on consignment. 50. Returnable Gate Pass (RGP): It is made when any merchandise or display item goes out of the store either for repair or temporary reasons and needs to come back. It requires details of the merchandise, person carrying out of the store, date, times, store no. and signatures of individuals who prepares and receives the item, and needs to be initiated by a DM and authorized by the Unit Head, or in his absence by an ROM. 51. Sale or Return: The arrangement with vendor wherein we order what we wish to sell and whatever does not sells is returned back to the vendor. Here we have some control in ordering and returning the stocks. The payment is made only for what all has been sold. The stocks are accounted in our system. 52. Season: A selling period of the year, generally Autumn

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53.

54.

55.

56. 57.

58.

59.

60.

Winter (October March) and Spring Summer (April September). Signages: This is the communication of offers and schemes that run in the store on various brands, which need to be communicated to the customers. This is done in certain standard format, font size, with our logos, conditions, etc. and they are printed and put up in acrylics and placed in the respective section. SKU (Stock Keeping Unit): It is a bar code allotted to every merchandise printed on the price tags consisting of 13 digits with the PO number. It helps in identifying goods and assorting them. E.g.; 2673613115854 Soft Tag: Black security tags plugged on to the merchandise to avoid shoplifting. They beep as soon as the merchandise is brought near the sensomatic sensors at the exit points. Stacking: Folding and arranging the garments in the gondolas in proper neat format is called stacking. Stock keeping unit (SKU): The lowest level of identification of merchandise for inventory management. Within a particular style, this usually refers to the identification of a unique size within a particular color / style / dimension. Style Code: It is a code given to merchandise in a particular batch size. It consists of various details like the season to which the product belongs, year, colour, size, model no. etc. E.g. SO515PLUCK515107127104. Tag Beep: A tag beep occurs when a soft or hard security tag comes close to the security sensors placed at exit points. It usually happens in cases of shoplifting or if the tags have not been removed while packing the products in the bag after the customer has made the payment. Till/Register: The machine where merchandise is billed

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after a customer finishes his / her shopping is called the till or register or POS machine. Every till is numbered and while noting the transaction number of any transaction it is necessary also to note the till number as it helps to trace the history of transaction. 61. Transaction number (TRX No.): This is mentioned on the cash memo, and refers to that particular transaction in that till it was generated in. This is necessary to be maintained in order to track the history of that sale. 62. Variance: This is the difference between the stocks shown in the system and the on hand physical pieces present on the floor. The variance can be positive (physical more than system) or negative (physical less than system).