End-to-end SWOT Analysis of Shoppers Stop

Updated on: Sep 7, 2021
SWOT Analysis of Shoppers Stop-feature image |IIDE

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Shoppers Stop, India’s first department store, has evolved from a single-brand store to a fashion and leisure destination. They first opened their doors in 1991, and since then, have built a reputation for providing high-quality items that are attainable to everyone.

In this case study, we will look at the SWOT Analysis of Shoppers stop. We will review the firm’s strengths, weaknesses, opportunities, threats, and also dive into some of its competitors.

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About Shoppers Stop

brand logo of Shoppers Stop-SWOT Analysis of Shoppers Stop | IIDE

The K Raheja Corp owns the Shoppers Stop department store network in India. They began their venture in 1991, with the launch of their first store in Andheri, Mumbai. The company is the sole member of the ‘intercontinental Global Departmental Stores’ from India.

The store has been operating using a sales approach that is distinct from that of other comparable stores. Shoppers Stop emphasized strongly on selling products that may be purchased on the spur of the moment and are frequently inexpensive – a feature that has helped it maintain its market share ever since.

Clothing, accessories, jewellery, shoes, cosmetics, health and beauty goods, cosmetics, perfumes, décor products, and purses are all available at Shoppers Stop. It has long been recognised for its high-quality products, as well as its knowledge and reputation.

SWOT Analysis Of Shoppers Stop

Shopper stop store-SWOT analysis of Shoppers stop | IIDE

An effective strategic tool used by corporates to understand their position in the competitive marketplace is SWOT Analysis. It entails identifying a company’s internal factors such as its strengths and weaknesses, and their external factors such as the opportunities and threats it faces in the competitive marketplace.

SWOT Analysis pushes a firm to look at its business and/or plan in many ways by taking several pathways. This approach demonstrates an idea’s or plan’s actual potential and, as a result, assists the firm in achieving its objectives in a strategic way with a rock-solid basis for corporate success.

Now that we’ve established the value of the SWOT analysis, let’s discuss Shoppers Stop usage of this tool.


1. Strengths

Shoppers Stop is the most popular department store in India. They have established themselves as the industry’s top standard, yet they are up against stiff competition. Strengths are aspects of an organisation that contribute successfully or a system that distinguishes them from their competitors.

A Strength is any internal aspect of the organisation that delivers a clear benefit. So, let’s take a look at theirs.

  • Their major priorities are their uniqueness and ability to deal with day-to-day technical transitions. 
  • The firm’s distinct and respected brand was preserved because of its long history and outstanding quality. They have a clear and crisp business model.
  • Shoppers Stop has locations in over 40 cities and a significant market presence. Customers are contacted through newly updated internet shops where they could purchase their items.
  • It’s a one-stop store for a variety of goods. In each area, it contains over 400 of the top worldwide and domestic brands. 
  • Their management team, as well as their skilled labor force, are well-established.


2. Weakness

Shoppers Stop has flaws, despite its notable status. Recognizing and addressing a company’s weaknesses is essential. It contributes to the company’s growth and market dominance. 

Let’s take a look at some of its most grave weaknesses.

  • Inefficient use of shareholder cash – ROE has been decreasing in recent years. 
  • For the past two years, there has been an inefficient use of assets to produce profits and a quarterly revenue drop.   
  • In comparison to worldwide leaders, it has fewer promotional tactics on both the ATL and BTL levels. 
  • In a company or when entering a new segment, it always adopts a low-risk approach.


3. Opportunities

Shoppers stop promotions- SWOT analysis of Shoppers Stop | IIDE

Opportunities are targets that must be hit in order for anything good to happen. These opportunities may appear in modest ways, but it is critical to recognize them in order for the firm to develop.

Here are a few opportunities for Shoppers Stop.

  • Shoppers Stop has a history of using cutting-edge retail technologies in its operations. It is their continual objective to create and deploy innovative technological solutions in order to give a pleasant purchase experience for their customers. 
  • There is a significant possibility to expand into new areas on a national scale. It might be classified as Hypercity, a high-end retail category. 
  • It is seen as a preferable partner for foreign investors looking to invest in India.


4. Threats 

A threat is an inevitable factor that every company is bound to face. Not recognizing it can lead to the company experiencing a slump, thus it is a vital step to work on in every organization. 

Let’s look into some of Shoppers Stop’s potential threats. 

  • Customers are constantly opting for a convenient and online purchasing experience. As a result, large stores like Amazon and Flipkart are becoming prominent competitors. 
  • Shoppers Stop and other brick-and-mortar companies are coming under growing pressure from e-commerce competitors who give customers steep discounts.

It is essential to consider relevant factors that guarantee a company’s success. We learned how Shoppers Stop improves its services to maintain its place in the retail sector through this in-depth SWOT study. Despite the rise of internet shopping and the variety of retail options available today, the firm recognised the threat and pushed to improve.


Competitive Analysis of Shoppers Stop

Shoppers Stop is up against several other well-known companies, including

  • Pantaloons: They are a well-known retailer in India, with a variety of shop formats catering to both the value and lifestyle of the consumer markets. Pantaloons have a presence in about 25,000 multi-brand shops and 6,500+ points of sale in department stores across India, with a network of 3031+ sites. 
  • Westside: Trent Ltd – a Tata Group retail company, founded in 1998, is the owner of Westside, a fast-growing retail firm in Mumbai, Maharashtra. The company has over 200 retail outlets in 82 major Indian cities under the Westside moniker, with sizes ranging from 8,000 to 34,000 square feet.
  • Myntra: Myntra is an Indian fashion e-commerce firm based in Bengaluru, Karnataka. After launching in 2007 to sell customised gift items, Myntra expanded to include fashion and leisure products in 2011. 
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To summarise, Shoppers Stop is a value-driven company that focuses on offering high-quality products while also increasing the bar. They’ve been increasingly popular in recent years as a consequence of marketing campaigns on a variety of social media platforms, including Instagram and Facebook.

Since most people prefer to buy online, Shoppers Stop competes with firms like Amazon and Flipkart. For the company to remain competitive and leading, they need to work around effective online shopping and establish stronger engaging social media promotion strategies. 

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Aditya Shastri

Lead Trainer & Head of Learning & Development at IIDE

Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs......[Read full bio]

1 Comment


    you should must give the methods of handling risk in this firm. It will be very helpful for us specially the students.


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