Relationship between Nifty and Shoppers Stop.
Author: Surbhi Sachin Jundre
INTODUCTION
Shoppers Stop is an Indian department store chain, owned by the K Raheja Corp. There are 86 stores across 40 cities in India, with clothing, accessories, handbags, shoes, jewellery, fragrances, cosmetics, health and beauty products, home furnishing, and decor products. The first store was opened in Andheri, Mumbai on 27th Oct 1991. Shoppers Stop Ltd has been awarded “the Hall of Fame” and won “the Emerging Market Retailer of the Year Award”, by the World Retail Congress at Barcelona, in April 2008. Shoppers Stop is listed on the BSE and National Stock Exchange of India. As of 2013, Shoppers Stop had 83 stores in India.
OBJECTIVE
To calculate beta of Shoppers Stop and see its significance.
LITERATURE REVIEW
Saini (2020) states in her article that Shoppers Stop had a significant presence on social media platforms—LinkedIn, Facebook, Twitter and YouTube. However, a large number of Shoppers Stop’s customers posted complaints about deficiency in customer service on these social media platforms, mainly on Facebook. The complaints and ratings were also seen by other stakeholders such as potential employees who form a perception about the company’s employer brand based on these ratings. While Shoppers Stop promptly responded to disgruntled customers on Facebook to redress their complaints, Shoppers Stop was uncertain about the possible adverse impact of these customer reviews on the company’s employer brand. Further, Shoppers Stop wanted to leverage its presence on various social media platforms to promote and manage its employer brand.
Banerjee & Pawar (2014) explains that out of the three categories in Indian Retail business one of the most growing and profitable category is kidswear. The changing family income patterns and brand consciousness of the children have affected the consumer brand choice and buying behavior. Without a doubt there have been many key factors determining the buying behavior of consumers in the kidswear market as well as their perception towards upcoming and leading brands. This paper aims at identifying the key factors affecting the buying decision of consumers followed by mapping the various brands available at Shopper’s Stop according to consumer perception. Statistical inferences were drawn from the analysis, key buying behavior factors were extracted, and multi-dimensional scaling was implemented in the study to make logical conclusions of the study.
DATA COLLECTION
The data of Nifty 50 and Equity of Shoppers Stop limited has been downloaded NSE site, for the period from 01 February 2023 to 31 January 2024. The data was manipulated to get the Friday closing prices of Nifty 50 and Shoppers Stop Limited. The weekly returns of NSE index Nifty 50 is X and for the returns of equity of Shoppers Stop limited if Y. Wherein Y (Equity of Shoppers Stop) is Regressed on X (Nifty 50) and the relationship between the two is plotted.
DATA ANALYSIS
Data equation of Shoppers Stop = -0.0028 + 0.5560 Nifty
N = 48
R2 = 0.0626
F = 3.0727
INTERPRETATION
- The above equation shows the relationship of Shoppers Stop limited with Nifty 50.
- If nifty rises by 1 unit Shoppes Stop will rise 5560 unit.
- T-Stat for beta is 1.7529.
- of observations is 48.
- R2 is 0626, meaning 6.26% of Shoppers Stop limited is explained by nifty 93.74% of Shoppers Stop depends on other variables which are not in the error model.
- F = 0727 which is more than table F which means that the overall model is statistically significant at 5% level.
CONCLUSION
As beta = 0.5560 is less than 1 the company is good for long term investments.
REFERENCES
Saini, G. K. (2020). Shoppers stop: Leveraging social media for employer branding. Emerging Economies Cases Journal, 2(1), 54-61. doi:https://doi.org/10.1177/2516604220930394
Banerjee, S., & Pawar, S. (2014). Factors affecting the consumer buying behavior in kidswear market and perceptual mapping of the kidswear brands of shopper’s stop. Journal of Management Research, 14(4), 257-269. Retrieved from https://www.proquest.com/scholarly-journals/factors-affecting-consumer-buying-behavior/docview/2575911675/se-2
